ETF Database » PLK

Bond ETF Drawbacks: Case For Active Management In Fixed Income Arena

Michael Johnston — Mon, 06 Jun 2011 19:18:50 +0000

While many of the “first generation” of ETFs offered exposure to widely-followed equity indexes, the universe of exchange-traded products has expanded at a tremendous pace in recent years to include more than 1,200 ETPs across a number of different asset classes. More and more investors have embraced the exchange-traded structure as a vehicle for achieving exposure to fixed income; according to the ETF screener there are more than 160 bond ETFs covering every imaginable corner of the fixed income market, from convertible bonds to high yield munis and even Latin American debt. The appeal of utilizing ETPs within the fixed income portion of a portfolio is relatively straightforward; ETFs offer competitive expense ratios, intra-day liquidity, and potential tax efficiencies. But there are some potential pitfalls that should be considered when using index-based ETFs to achieve bond exposure. Bond ETFs are somewhat unique in that the investor experience varies considerably from [...]

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Complete List Of Active ETFs

Michael Johnston — Sun, 05 Jun 2011 11:00:14 +0000

Since PowerShares debuted its first active ETFs in the spring of 2008, this corner of the exchange-traded product market has grown tremendously. Though many active ETFs have been somewhat slow to accumulate assets, the increase in the size of the lineup highlights the trend towards vehicles that combine active management with the exchange-traded structure. There are now dozens of actively-managed ETFs offering exposure to a number of asset classes, including stocks, bonds, and currencies. The following tables present all of the active ETFs currently available to U.S. investors, including expense information, inception date, and the applicable benchmark. New active ETFs are added as they are launched, providing a real time list of active ETFs [filter by active / passive and other fields with the free ETF Screener]. Equity ETFs There are a number of different active equity ETFs, including funds that offer exposure to both domestic and international equity markets. [...]

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Guggenheim Launches Pair Of Active Bond ETFs

Michael Johnston — Wed, 01 Jun 2011 14:35:13 +0000

Guggenheim became the latest ETF issuer to roll out actively-managed products on Wednesday, raising the curtain on a pair of funds that offer exposure to bond markets. The company completed the active ETF introduction by overhauling a pair of indexed bond funds, changing names and ticker symbols and dropping the target index altogether. The new active bond ETFs include: Old Ticker Old Name New Ticker New Name UBD Claymore U.S. Capital Markets Bond ETF GIY Guggenheim Enhanced Core Bond ETF ULQ Claymore U.S. Capital Markets Micro-Term Fixed Income ETF GSY Guggenheim Enhanced Ultra-Short Bond ETF UBD Becomes GIY Historically, UBD has been linked to The Capital Markets Bond Index, a benchmark that is designed to represent that traditional investment grade securities in the United States long-term fixed income capital markets. That fund consisted of long-dated fixed income securities, including both Treasurys, mortgage-backed securities, and high quality corporate issues. The revamped [...]

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Handicapping The Active ETF Race

Michael Johnston — Thu, 18 Mar 2010 16:01:23 +0000

To say opinions on the future of active ETFs are mixed would be a major understatement. Nearly two years after PowerShares launched its first line of active ETFs and a year after the much-publicized launch of the Grail American Beacon Large Cap Value ETF (GVT), active ETFs remain stuck in first gear. Investors have expressed excitement over the development of an investment option combining active management with the benefits of the exchange-traded structure, but have so far been hesitant to put their money where their mouth is. Some analysts doubt that active management will ever really catch on, citing a number of hurdles that may be difficult to overcome. Others think that a surge in activity in the space is inevitable, eagerly anticipating a number of potential “gamechangers” that could accelerate growth. Despite the slow start, active ETFs have gained some momentum in recent months, and there’s reason to believe [...]

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An Active ETF Gets Its Wings

Michael Johnston — Tue, 16 Mar 2010 07:00:28 +0000

The monthly data release of ETF trading data from the National Stock Exchange always provides a comprehensive industry snapshot, detailing fund flows, asset levels, and the latest update on an increasingly-competitive battle for market share. There is no shortage of number-crunching following each release, but most of the analysis focuses on high level industry trends, such as month-over-month growth, cash inflows, and success of recent high-profile launches. A look beyond the handful of mega-tickers that account for the majority of assets often reveals some interesting trends. Buried in the February release (in line number 699 to be exact) were some interesting stats that may signal an exciting new era for actively-managed ETFs. One of the handful of active ETFs available to U.S. investors saw assets surge last month, and has been enjoying a jump in trading volumes ever since. The PowerShares Active AlphaQ Fund (PQY) saw cash inflows of $14 [...]

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T. Rowe Price Plans Actively-Managed ETFs

Michael Johnston — Fri, 11 Dec 2009 07:00:53 +0000

T. Rowe Price has filed with the Securities and Exchange Commission for approval to launch a line of actively-managed ETFs. In its filing for exemptive relief with the SEC, T. Rowe indicated that its initial fund would invest primarily in domestic fixed income securities, but that it could eventually launch domestic and international equity ETFs, as well global fixed income funds. T. Rowe Price is the latest in a now long line of mutual fund giants to jump over to the ETF industry. Vanguard was one of the earliest entrants into the space, and has become one of the most successful ETF issuers. The firm founded by Jack Bogle saw cash inflows of almost $5.5 billion in November, the most of any ETF issuer for the month. PIMCO and Charles Schwab have also made successful transitions into the ETF space: PIMCO now has nine fixed income ETFs (including two actively-managed [...]

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PIMCO Launches MUNI Bond ETF

Michael Johnston — Wed, 02 Dec 2009 06:40:53 +0000

PIMCO, the Newport Beach, California-based bond fund giant, launched its latest exchange-traded fund on Wednesday, the Intermediate Municipal Bond Strategy Fund. The new ETF, which comes with an expense ratio of 35 basis points, will trade under the ticker MUNI, which was somehow still available. The ETF will be managed by John Cummings, the company’s executive vice president and head of PIMCO’s municipal bond desk. MUNI will be benchmarked against the Barclays Capital 1-15 Year Municipal Bond Index, and will invest in a portfolio of bonds that are of high credit quality, intermediate duration, and carry interest payments exempt from federal tax. Why Municipal Bonds? Despite the massive size of the municipal bond market, currently more than $2.6 trillion (PDF), there are only 13 other ETFs in our National Munis ETFdb Category with a combined $5.4 billion in assets under management (which equates to less than 0.21% of the total [...]

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PIMCO Launches Actively-Managed Short Maturity ETF

Michael Johnston — Tue, 17 Nov 2009 14:53:38 +0000

Newport Beach, California-based PIMCO announced Tuesday the launch of its first actively-managed bond ETF, the Enhanced Short Maturity Strategy Fund. The new ETF will trade on the NYSE Arca Exchange under the ticker MINT and charge expenses of 0.35%. MINT is intended to be a higher yielding alternative to money market funds, and will invest primarily in short duration investment grade debt securities. MINT will not include options, futures, or swaps in its holdings. The new PIMCO ETF will be managed by Jerome Schneider, deputy head of the company’s money market desk. “Investors are holding a lot of cash, and are compelled to look for something beyond the near-zero yields that money market funds offer,” said Schneider. “MINT aims to maximize investors’ current income by accessing PIMCO’s discipline, risk management and market expertise within a highly liquid and transparent ETF.” MINT will be managed in the mold of countless other [...]

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Checking In On The DENT ETF

Michael Johnston — Wed, 11 Nov 2009 16:26:04 +0000

Earlier this year, best-selling author Harry Dent , Jr. ventured into the ETF industry, launching the Dent Tactical ETF (DENT) in a move that further blurred the lines between active and passive management. DENT is actively managed by a team of analysts using primarily economic and demographic analysis to determine the overall trend of U.S. and global economies and how consumer spending patterns may change based on this analysis. DENT has been trading for only about two months, but a look at the fund’s performance over that period and its current holdings reveals some interesting trends. Blurring The Lines DENT isn’t the first actively-managed ETF – PowerShares introduced four active funds in April 2008 and Grail followed suit in May of this year – but it is unique in several ways. The PowerShares and Grail active funds focus primarily of selecting individual stocks (and bonds and REITs, in the case [...]

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iShares To Expand Corporate Bond ETF Coverage

Michael Johnston — Mon, 12 Oct 2009 14:16:31 +0000

San Francisco-based iShares, the established market leader in the bond ETF space, has filed for two additional ETFs that would expand its coverage of fixed income ETF opportunities. The two new proposed funds include: iShares 10+ Year Credit Bond Fund (CLY) iShares 10+ Year Government/Credit Bond Fund (GLJ) CLY will track the BofA Merrill Lynch 10+ Year U.S. Corporate & Yankees Index, a benchmark that includes debt issued by U.S. corporations as well as Yankee bonds. Yankee bonds refer to U.S. dollar-denominated debt issued by non-U.S. corporations and non-U.S. governments. Yankee bonds are regulated by the SEC and are rated by agencies like Standard & Poor’s and Moody’s, but still generally offer a risk premium over most U.S. bonds. Long Overdue As many investors learned the hard way during the recent recession, fixed income exposure is a critical component of any portfolio. Yet the bond ETF space remains relatively undeveloped. [...]

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ETF Database » PLK

Bond ETF Drawbacks: Case For Active Management In Fixed Income Arena

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