Special Report: Alpha ETFs Come Of Age

Michael Johnston — Tue, 01 Sep 2009 09:00:55 +0000

In the summer of 1992, Eugene Fama and Kenneth French published “The Cross-Section of Expected Stock Returns” in The Journal of Finance, a groundbreaking analysis that prompted financial presses to run headlines declaring “beta is dead.” While the death sentence may have been a bit severe, it struck a significant blow to a widely-accepted and longstanding financial concept, causing academics and investors to reconsider tenets they once took for granted. In recent decades, a collection of academic studies, disillusioned investors, and financial innovations have contributed to a similar prognosis for beta’s Greek neighbor, alpha. The idea that was hatched by Brinson and Hood and supported by the likes of Ibbotson and Kaplan and Barras and Scaillet was fueled by years of investor frustration. Following the introduction and rapid rise in the popularity of indexing and ETFs, it seemed that what started out as a scholarly whisper had grown into a [...]

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Talking ETFs, China, and Intellectual Property With Claymore’s Christian Magoon

Michael Johnston — Tue, 25 Aug 2009 14:05:08 +0000

Christian Magoon is the President and Senior Managing Director of Claymore Securities, Inc. He recently took time out of his busy schedule to talk with ETF Database. ETFdb: It’s been a good year for the ETF industry, and Claymore in particular. Obviously the equity markets have had a pretty strong rebound in 2009, but also strong cash inflows have increased the size of the ETF market. Data from the National Stock Exchange indicates that Claymore has seen cash inflows of more than $635 million this year. Are there any sectors or funds that you’ve seen as especially popular among investors this year? Christian Magoon: We’ve seen a lot of share growth as well as AUM [assets under management] growth this year. Through August 14th, we’ve seen our shares grow about 64%, which translates into about 39.5 million shares. Our AUM growth has also been very strong at over 118% through August [...]

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Special Report: Alpha ETFs Come Of Age

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Talking ETFs, China, and Intellectual Property With Claymore’s Christian Magoon

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