ETF Database » ONEQ

What Will A Facebook IPO Mean For ETFs?

Jared Cummans — Tue, 31 Jan 2012 14:05:06 +0000

The rumors have been swirling for years: Facebook will IPO next month, next quarter, next year. But each time it seems that investors are disappointed with no such event. However, 2012 may finally see the long-awaited IPO from the social networking giant. Before you roll your eyes and click out of the page, consider some new developments that make this event very likely. Other than unnamed sources confirming an IPO in early to mid 2012, the company’s private stock has been frozen for the past three days, a move that typically coincides with a filing to go public in the near future. ”Facebook and companies who do this don’t want to expose themselves to lawsuits related to the fact that some people had it before others and were able to trade on it,” Sam Hamadeh, CEO of private company research firm PrivCo, told Bloomberg. “The best way to protect yourself is [...]

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Free ETF Trading: Comparing All The Options

Eric Dutram — Fri, 22 Oct 2010 15:00:25 +0000

As the ETF world continues to grow, the competitive landscape continues to evolve. In recent years, a growing number of firms have attempted to differentiate themselves by offering unique exposure to asset classes and strategies not previously available–such as funds tracking the Philippine stock market or ETNs linked to the price of industrial metals such as zinc or tin. More recently, the ETF industry has witnessed escalating price wars, with multiple issuers lowering management fees in an attempt to lure cost-conscious investors. These price wars have sent expense ratios to as low as six basis points, much to the delight of investors accustomed to forking over upwards of 1.5% annually to active mutual funds. But many ETF issuers have recognized that the total cost of ETF investing goes beyond just expense ratios, and have aggressively marketed programs designed to save investors money when executing ETF trades [see The Total Cost [...]

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Grail To Close Two Active ETFs (RPQ, RFF)

Michael Johnston — Tue, 24 Aug 2010 05:30:35 +0000

Grail Advisors has announced that it will close two actively-managed ETFs the firm currently offers through a partnership with RiverPark Capital. Trading in the RP Technology ETF (RPQ) and RP Financials ETF (RFF) will be suspended prior to the market open on August 30, and shareholders will have their shares redeemed for cash the following day. Grail and RiverPark will be covering all costs related to the shuttering of the funds. “By all appearances, the marketplace is not ready for these sector funds. We’ve been pleased with the performance of the RP Technology ETF but flows have still been disappointing,” said Morty Schaja, CFA, CEO, and Managing Partner at RiverPark Capital. “I believe investors will be better served by incorporating the best ideas of these two sector funds into our RP Growth ETF (RPX) offering.” Both RPQ and RFF were launched in October 2009. Since its inception RPQ has gained [...]

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Simplifying Investing: Five All Cap ETF Options

Jared Cummans — Wed, 28 Jul 2010 12:15:31 +0000

ETFs have burst onto the investing scene in part because they allow for a tremendous simplification of the portfolio construction process. Even relatively novice investors are able to construct a well-diversified, balanced portfolio with just a handful of tickers, eliminating a slew of unnecessary expenses in the process. For most investors with a high or moderate risk tolerance, the domestic equity component of a portfolio will receive the largest weighting, and is generally broken down into at least three buckets: small, mid, and large caps. But some take simplicity to the extreme, electing to achieve the entirety of their domestic equity exposure through a single fund [see Low Cost ETFs: Complete List Of The Cheapest Exchange-Traded Funds]. Before the widespread adoption of ETFs, such a step may have bordered on insanity. But now there are a number of options that include exposure to thousands of individual securities within a single [...]

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Vanguard Announces Commission-Free ETF Trading

Michael Johnston — Tue, 04 May 2010 15:13:36 +0000

Vanguard, known within the ETF and index fund industries for its rock bottom expenses, announced on Tuesday that it will begin offering commission-free trading on its ETFs. Vanguard brokerage clients will be able to make commission-free transactions in each of Vanguard’s 46 ETFs. The company also announced that most Vanguard brokerage clients will pay either $2 or $7 to trade non-Vanguard ETFs. “For 35 years, Vanguard has been committed to reducing the cost of investing in mutual funds for our clients. Now, Vanguard is expanding our low-cost commitment to ETFs,” said Vanguard CEO Bill McNabb. “Importantly, Vanguard offers a greater choice of ETFs with expense ratios that are among the lowest in the industry.” Vanguard’s move comes after two of the firm’s biggest competitors have rolled out commission free options. Charles Schwab ETFs can be traded commission free online through a Schwab account, while iShares has partnered with Fidelity to [...]

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ETFs At Center Of Vanguard/Fidelity Dispute

Michael Johnston — Fri, 28 Aug 2009 14:50:38 +0000

It must be one of the oldest arguments in the history of mankind: who’s number one? Last year, we received regular updates on the status of the ongoing battle between General Motors and Toyota for the global sales crown (and more recently for the Cash For Clunkers crown). At present, this question is causing a great deal of tension in the mutual fund world, as the industry’s two largest players battle for the title of “world’s largest mutual fund company.” And at the heart of the debate: exchange-traded funds. Citing different calculations, both Fidelity and Vanguard make legitimate claims to being the industry’s biggest. If ETFs are included within mutual fund assets, Vanguard comes out on top. If ETFs are excluded, Fidelity is the winner. The status of the ETF product lines of these two mutual fund giants highlights the growing importance of ETFs, as well as the widely-varying approaches [...]

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Handicapping Potential iShares Buyers

Michael Johnston — Mon, 08 Jun 2009 15:34:36 +0000

In April of this year, Barclays announced that it had agreed to sell its iShares line of ETFs to private equity firm CVC Capital Partners for $4.4 billion. So why all the speculation lately that BlackRock and other banks are in the running to acquire the fund family? As part of its deal with CVC, Barclays inserted a “go shop” clause, which allows it to seek out potential acquirers until June 18. With that deadline less than two weeks away, BlackRock and Bank of New York Mellon have emerged as frontrunners, but the fate of iShares is still murky. Here’s a look at several companies rumored to be interested in making an acquisition: BlackRock (BLK) Why a deal might happen: Several news reports this week have indicated that Barclays may be close to reaching a deal to sell Barclays Global Investors (BGI) and iShares to BlackRock for approximately $12 billion (note that [...]

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Study: ETFs Come Out Ahead in Tax Efficiency

Michael Johnston — Wed, 27 May 2009 05:05:43 +0000

By now, many investors have heard countless times the advantages of ETFs over mutual funds: lower costs, tax efficiency, improved transparency, etc., etc. While the cost issue is relatively straight forward, the tax advantages of ETFs are a bit more confusing. Even with a detailed explanation, this advantage remains a largely theoretical concept for most investors. But the results of a new study completed by Morningstar allow us to quantify the tax advantages of ETFs. What’s the Big Deal? ETFs are designed to provide relatively low capital gains distributions to investors. This is important for several reasons. First, capital gains distributions often force investors to sell some holdings to cover the required taxes. Second, for investors in high income brackets, capital gains may be taxed at higher rates than if they had been delayed until retirement. Numbers Don’t Lie Scott Burns, Director of ETF Analysis at Morningstar, compiled the capital gains [...]

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ETF Database » ONEQ

What Will A Facebook IPO Mean For ETFs?

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Free ETF Trading: Comparing All The Options

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Grail To Close Two Active ETFs (RPQ, RFF)

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Simplifying Investing: Five All Cap ETF Options

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Vanguard Announces Commission-Free ETF Trading

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ETFs At Center Of Vanguard/Fidelity Dispute

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Handicapping Potential iShares Buyers

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Study: ETFs Come Out Ahead in Tax Efficiency

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