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PXSV

As the ETF industry continues to develop, many investors have begun to move away from the more “traditional” funds in favor of ETFs that employ unique methodologies that are aimed at delivering potentially higher returns. Of the most noteworthy and popular innovations has been the development of alternative weighting strategies, specifically the RAFI methodology [see 101 ETF Lessons Every Advisor Should Learn].

Several years ago, Research Affiliates, a global lead in innovative investing and asset allocation strategies, developed the fundamentally-weighted indexes that utilize the RAFI methodology. Now there are nearly 20 different exchange-traded products that are linked to RAFI-weighted indexes. But before taking a look at the performance of these popular funds, a fundamental understanding of the unique methodology is essential.  [click to continue…]

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The first half of 2011 is officially in the books, and many investors find their portfolios in approximately the same place as they were to start the year (though a furious rally in the final week of the quarter gave a nice boost at an opportune moment). Most major equity indexes are up slightly on the year, while fixed income benchmarks have similarly hovered around breakeven. Beyond these broad generalizations, there are some significant performance discrepancies among exchange-traded products that may seem to offer up similar risk/return profiles.

The following tables highlight the top performers from every ETFdb Category during the first six months of the year, shedding some light on the asset classes that have struggled and thrived so far in 2011–and reinforcing that the seemingly minor distinctions between ETPs can lead to big differences in performance [for monthly updates on the best performers, sign up for the free ETFdb newsletter]: [click to continue…]

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June was another interesting month for markets around the world as a number of important events transpired over the past few weeks. The Federal Reserve meeting came and went without much of a hitch as Bernanke called for the end of QE at the end of the month but suggested that the economy was still […]

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A Dead Cat Bounce?

by on June 18, 2011

The last week was an up-and-down stretch for global equity markets, as the intensifying crisis in Greece dominated headlines and investors scrambled to analyze the potential fallout from what seems increasingly likely to be a default on sovereign debt obligations. The jump in equity markets–which snapped a six week losing streak–wasn’t really attributable to good […]

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PowerShares, one of the largest ETF issuers by assets, made the latest step in its push towards alternative index products on Thursday. The company converted seven existing products from its “Dynamic” ETF suite to Fundamental Pure Style ETFs that seek to replicate RAFI benchmarks. In addition the company will introduce two new ETFs, including the […]

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PowerShares, the Chicagoland ETF issuer behind the ultra-popular QQQ that has expanded its presence in the alternative weighting arena in recent years, has plans to significantly expand its partnership with Research Affiliates, the firm that developed the RAFI methodology. Next month, PowerShares will convert seven existing products from its “Dynamic” ETF suite to Fundamental Pure […]

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