ETF Database » MNA

ProShares Launches Hedge Fund Replication ETF (HDG)

Michael Johnston — Fri, 15 Jul 2011 12:45:22 +0000

ProShares announced the launch of the Hedge Replication ETF (HDG), a new product that will seek to provide returns characteristic of the hedge fund asset class. The new ETF is designed to maintain a high correlation to the HFRI Weighted Composite Index, an equal-weighted composite of more than 2,000 funds. The new ETF will seek to accomplish its objective by employing a proprietary model to establish weighted long or short exposure to six factors: S&P 500 Total Return Index MSCI EAFE US Dollar Net Total Return Index MSCI Emerging Markets US Dollar Net Total Return Index Russell 2000 Total Return Index 3-month U.S. Treasury Bills ProShares UltraShort Euro ETF The ETF will rebalance monthly, at which point a systematic regression analysis will determine which weighting for the factors would have produced the strongest correlation with the HFRI benchmark over the previous 24 month period. The S&P 500, MSCI EAFE, and [...]

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When ETNs Are Better Than ETFs

Michael Johnston — Wed, 16 Mar 2011 13:00:15 +0000

As the universe of exchange-traded products has expanded considerably in recent years, investors have become more aware of the nuances between the various types of investment vehicles. Under the “ETF umbrella” are a number of product structures that aren’t true 1940 Act exchange-traded funds, including unit investment trusts (UITs) and grantor trusts. Also included are exchange-traded notes (ETNs), debt securities that are similar in many ways to their ETF cousins but very different in others. ETNs are debt securities issued by financial institutions such as Barclays, Credit Suisse, and UBS. But unlike most debt instruments, the value of these securities is linked to the value of an underlying index; as the benchmark increases, so too does the value of the exchange-traded note. As such, the exposure offered ETNs is similar to the exposure of passive ETFs–both deliver returns that reflect the performance of an index [also see The Basics Of [...]

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How ETFs Have Democratized Investing

Michael Johnston — Thu, 10 Mar 2011 15:00:02 +0000

ETFs have been praised for improving the investing experience in a number of different ways. They have been the catalyst for a shift towards low cost indexing strategies, and have placed strong downward pressure on management fees throughout the investing landscape. They have improved tax efficiencies and intraday liquidity, allowing investors to move in and out of positions throughout the day and construct more complex short-term trading strategies. But arguably the greatest contribution of the ETF boom has been not the reduction in fees or the potential tax efficiencies; the tremendous growth of the ETF lineup has democratized the business of investing, opening up investment strategies and entire asset classes that have historically been accessible only to the largest and most sophisticated of investors. A significant portion of ETF assets are in “plain vanilla” products that offer exposure to domestic and international equities and U.S. bonds. And while the rise [...]

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Credit Suisse Adds Leveraged Merger Arb ETN (CSMB)

Michael Johnston — Tue, 08 Mar 2011 14:30:53 +0000

Credit Suisse announced the launch of its fourth ETN today, rolling out a product offering leveraged exposure to a merger arbitrage strategy. The 2x Monthly Leveraged Credit Suisse Merger Arbitrage Liquid Index ETN (CSMB) will be linked to an index consisting of stocks that are proposed takeover targets, delivering 2x leveraged exposure on a monthly basis. Credit Suisse debuted a merger arbitrage ETN in October 2010, and CSMA has seen assets grow to about $55 million since then. CSMB will be linked to the same index underlying CSMA, but will deliver monthly returns equal to 200% of the change in the underlying index over that month. A merger arbitrage strategy involves purchasing stocks of companies after a proposed acquisition is announced. Once a transaction is announced, there are still certain obstacles to completing a deal; there may be regulatory hurdles to be cleared or shareholder objections to a proposed deal [...]

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IndexIQ Files For International Small Cap, Asian Tiger ETFs

Michael Johnston — Tue, 08 Mar 2011 12:00:02 +0000

IndexIQ, the firm known for pioneering the hedge fund replication ETF space, recently made an SEC filing detailing plans for close to a dozen new funds targeting international equity markets. The filing was light on details such as ticker symbols or expense ratios, but highlighted the investment objectives for the innovative funds: IQ Mexico Small Cap ETF: Linked to the IQ Mexico Small Cap Index. IQ Asian Tigers ETF: Linked to the IQ Asian Tigers Index, which consists of stocks listed on an exchange in Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. IQ Asian Tigers Consumer ETF: Linked to the IQ Asian Tigers Consumer Index, which consists of stocks in the consumer sector in the Asian Tiger economies. IQ Asian Tigers Small Cap ETF: Linked to the IQ Asian Tigers Small Cap Index. IQ Asia Pacific ex-Japan Small Cap ETF: Linked to an index consisting [...]

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Using ETFs To Access Alternatives

Michael Johnston — Tue, 08 Feb 2011 22:00:08 +0000

The introduction and rapid expansion of the ETF industry has no doubt been a very positive development for investors big and small. The low fees characteristic of the exchange-traded structure have allowed cost-conscious investors to minimize expenses without sacrificing returns, while the enhanced tax efficiency and intraday trading capabilities have contributed increased flexibility to the investing public. As ETFs have gained traction with investors, the size of the product lineup has grown rapidly. What was relatively recently a few hundred funds offering exposure to “plain vanilla” stock and bond benchmarks has quickly grown to a stable of more than 1,100 exchange-traded products covering nearly every nook and cranny of the investable universe. This proliferation of ETFs has given investors more precise tools for accessing traditional asset classes, but it has also opened up investment strategies and asset classes that were previously either out-of-reach or that required considerable time and/or expenses [...]

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ETF Pipeline Grows: More Hedge Fund Products, VIX ETNs In The Works

Michael Johnston — Fri, 05 Nov 2010 11:00:48 +0000

Less than a week into November, the month is shaping up to be one of the most active in recent memory for the ETF industry. Vanguard (international real estate ETF), UBS (another MLP ETN), PIMCO (laddered Treasury fund), and Global X (Gold Explorers) have already launched new ETFs, and several more issuers are expected to debut new products in coming weeks. And as new funds hit the market, the product pipeline is quickly refilled with ideas for new products. One of the more interesting filings to hit the SEC’s desk this week came from ProShares, which detailed plans for its Hedge Fund Replication ETF. The proposed fund would track the performance of the Merrill Lynch Factor Model – Exchange Series. That benchmark is designed to maintain a high correlation with hedge fund beta, as represented by the HFRI Fund Weighted Composite Index, an equally-weighted composite of more than 2,000 constituent [...]

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Credit Suisse Launches Merger ETN (CSMA)

Michael Johnston — Mon, 04 Oct 2010 16:57:14 +0000

Credit Suisse rolled out the latest addition to its ETN lineup on Monday, launching the Credit Suisse Merger Arbitrage Liquid Index (CSMA). The exchange-traded note will be linked to an index designed to employ a merger arbitrage strategy by using a quantitative methodology to track a dynamic basket of securities held as long or short positions to reflect publicly announced merger transactions. CSMA will essentially seek to buy stocks that have been announced as takeover targets but for which the transaction has not yet closed. Because there is usually some degree of uncertainty as to whether an announced transaction will ultimately be consummated–regulatory and financing hurdles, as well as shareholder approval, are among the potential obstacles to closing a deal–takeover targets will often trade at a discount to the announced target price. By investing in stocks of publicly-traded takeover targets, investors can profit if the deal is ultimately completed, pocketing [...]

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M&A ETF (MNA) Holds Up During Slump

Jared Cummans — Sat, 21 Aug 2010 17:01:24 +0000

It is no secret that generating steady returns in equity markets has been a daunting task. The market has been extremely rocky in 2010 as a stellar July was washed away by extreme levels of weakness in the early part of August. These moves have leveled out equities to produce a sideways trend, leaving many investors baffled on how to make a play going forward. Some have abandoned their equity posts altogether, taking shelter in fixed income while they wait out the storm. However, others have taken a more novel approach, utilizing innovative Hedge Fund and Quantitative Methodology ETFs in order to profit from an unpredictable financial environment [see ETF Ideas For A Flat Market]. In turbulent economic times, it is not uncommon for struggling companies to be bought out by larger, more stable firms. Likewise, some companies merge to boost profits and create synergies in order to form some [...]

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Closer Look At Hedge Fund ETFs

Michael Johnston — Tue, 27 Jul 2010 16:43:35 +0000

The past few years have seen no shortage of innovation in the ETF space; targeted international products, state-specific funds, and single-commodity ETPs are just a few of the developments to come out of the rapidly-expanding industry. Some of the most interesting products to hit the market recently are found in the Hedge Funds ETFdb Category, offering exposure to strategies that have historically been off limits to most investors. Many investors have some misconceptions about the hedge fund asset class; stories of outrageous returns generated in the 1990s and early 2000s have led them to believe that hedge funds seek to generate massive absolute returns by taking on significant risk. But in reality, hedge funds aren’t always out to generate eye-popping absolute returns. As the very name of these vehicles suggests, most hedge funds are designed to hedge, dampening volatility and providing diversification benefits to traditional stock-and-bond portfolios [see Early Leaders [...]

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ETF Database » MNA

ProShares Launches Hedge Fund Replication ETF (HDG)

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When ETNs Are Better Than ETFs

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How ETFs Have Democratized Investing

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Credit Suisse Adds Leveraged Merger Arb ETN (CSMB)

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IndexIQ Files For International Small Cap, Asian Tiger ETFs

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Using ETFs To Access Alternatives

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ETF Pipeline Grows: More Hedge Fund Products, VIX ETNs In The Works

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Credit Suisse Launches Merger ETN (CSMA)

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M&A ETF (MNA) Holds Up During Slump

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Closer Look At Hedge Fund ETFs

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