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SILV

No corner of the ETF market has grown as quickly in recent years as exchange-traded commodities, as investors have embraced cheap and efficient exposure to an asset class that has historically been out-of-reach for all but the biggest and most sophisticated. Perhaps due to the uncertain economic environment, precious metals funds have become particularly popular, offering a safe haven for those concerned about the strength on the current recovery. While some ETPs offer exposure to gold and silver through futures-backed funds, most investors prefer physically-backed ETFs that will generally move in lock step with spot commodity prices. [click to continue…]

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Regional Bank ETFs: Caught Under The TARP

by Eric Dutram on September 7, 2009

When the financial bomb went off in the fall of 2008, it damaged or destroyed nearly everything in its path. Banking stocks (and banking ETFs) were near the epicenter of the blast, and therefore suffered significant damage. But even within the banking sector, there is a huge discrepancy in the returns generated by various types of financial institutions. While some types of banks have begun to prosper, regional bank ETFs have been among the hardest hit in our Financials ETFdb Category, and face a tough road to recovery. Two regional bank ETFs, the iShares Dow Jones U.S. Regional Banks Index Fund (IAT) and the SPDR KBW Regional Banking ETF (KRE) are down roughly 16.4% and 29.7%, respectively, year to date. Meanwhile, XLF, an ETF holding a sizable stake in large banks such as J.P. Morgan, Wells Fargo, and Bank of America, is up over 23% year to date. This large disparity can be traced back to two interrelated issues: TARP repayment problems and the depletion of FDIC reserves. [click to continue…]

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