ETF Database » TENZ

ETF Tax Efficiency Report Card

Michael Johnston — Wed, 22 Dec 2010 15:00:04 +0000

When rattling off the advantages that ETFs hold compared to traditional actively-managed mutual funds, most investors usually start with the issue of expenses. The easiest comparison to make involves expense ratios, the fees charged by ETF and mutual fund companies for investing in a product. Though some mutual funds offer single-digit expense ratios, most actively managed products charge in excess of 1% (the average for the mutual fund industry is in the neighborhood of 1.4%). By comparison, the average expense ratio for ETFs is less than 0.60%, and there are more than a dozen funds that charge less than 10 basis points. But the potential cost efficiencies of ETFs relative to actively-managed mutual funds go beyond simple expense ratios. ETFs also have the potential to be more tax efficient, thanks to the unique “in-kind” rules of the creation/redemption process. Whereas mutual fund investors may incur capital gains as a result [...]

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Treasury ETFs: Filling In The Duration Spectrum

Jared Cummans — Thu, 19 Aug 2010 17:01:50 +0000

There was a time not that long ago when investors harbored significant concerns over including fixed income ETFs within their portfolio. When the first bond ETFs were introduced many were uncertain that the marriage of fixed income and the exchange-traded structure would be an efficient and productive one. But as these securities have build a track record the investor comfort level has skyrocketed, along with total fixed income assets. A wave of general risk aversion has washed over financial markets in 2010, sending investors flocking to safe haven investments. That has caused the size of the Government Bonds ETFdb Category to swell; the 25 ETFs offering exposure to this asset class now have aggregate assets north of $15 billion. When making a bet on bonds, one of the most important decisions investors make relates to duration. Generally speaking, a longer time until maturity means a more attractive yield. In return, [...]

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Low Cost ETFs: Complete List Of The Cheapest Exchange-Traded Funds

Michael Johnston — Wed, 16 Dec 2009 18:15:04 +0000

The reasons for the rise of the ETF industry are numerous: intraday liquidity, (potentially) superior tax efficiency, and enhanced transparency relative to traditional actively-managed mutual funds have all contributed to the billions of dollars of inflows that these funds have seen in recent years. But the real attraction for most ETF investors is the reduced expenses these products offer, often only a fraction of the fees charged by mutual funds. But between ETFs, expense ratios can vary significantly, ranging from 0.08% (for several Schwab ETFs) to a whopping 1.50% (for the DENT actively-managed ETF). For investors looking to minimize expenses and pursue an indexing strategy in favor of active management, investing in ETFs is only the first step. In order to assist cost-conscious investors, we’ve assembled the cheapest ETF options for almost every asset class and sub-asset class. Each of the 900-plus ETFs currently included in the ETF Screener were [...]

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November ETF Roundup: Launches, Filings, and Closures

Michael Johnston — Wed, 02 Dec 2009 16:19:26 +0000

The ETF industry picked up steam in November, with several highly-anticipated funds coming to market and multiple issuers disclosing new details on innovative products that could be launched in 2010. The biggest news for the month was the entrance of Charles Schwab into the industry with the launch of four ETFs in early November. Debuting with a competitive cost structure, Schwab has made big inroads in the ETF industry already, racking up almost $150 million in assets already. But Schwab’s arrival was hardly the extent of the new developments in the ETF industry for November. Other highlights include: PIMCO continues to be extremely active, opening the month with the launch of two new Treasury ETFs (ZROZ and FIVZ) to complement existing products (TENZ and TUZ). In mid-November, the bond fund giant launched its first actively-managed short maturity ETF, MINT. The company closed out November with its second actively-managed ETF, MUNI. [...]

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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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September 2009 ETF Roundup: Launches, Filings, and Closures

Andy H — Wed, 30 Sep 2009 07:00:40 +0000

September was one of the most active months in the ETF industry in recent memory. We saw a wave of new fund launches from industry leaders and smaller players alike, along with perhaps the first of many commodity fund closures. September saw the introduction of another actively-managed ETF, proposals on several more innovative funds, and expanding product lines from many of the industry’s newest entrants. New Fund Launches A total of 12 new ETFs were launched in September, ranging from plain vanilla iShares ETFs to a physically-backed Swiss Gold ETF from ETF Securities to an actively-managed fund run by best-selling author and well-known investor Harry Dent. ETFs added to our ETF Screener this month include: ETFS Physical Swiss Gold Shares (SGOL): This ETF has already proven itself to be a viable competitor to GLD, accumulating $100 million in assets in its first month of trading. Three new funds from Pimco, [...]

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Pimco Boosts ETF Presence

Michael Johnston — Mon, 14 Sep 2009 15:02:08 +0000

Pimco, the Newport Beach, California-based bond fund giant, is quickly expanding its presence in the ETF arena. Three months ago, Pimco was watching from the sidelines as iShares continued to show its dominance in the fixed income ETF space. With the launch of three additional ETFs this month, Pimco’s product line now consists of five funds, and is likely to continue to expand. Pimco’s ETFs include: Pimco 7-15 Year U.S. Treasury Index Fund (TENZ) Pimco 15+ Year U.S. TIPS Index Fund (LTPZ) Pimco Broad U.S. TIPS Index Fund (TIPZ) Pimco 1-5 Year U.S. TIPS Index Fund (STPZ) Pimco 1-3 Year U.S. Treasury Index Fund (TUZ) Behind the scenes, Pimco is continuing to prepare for additional fund launches, but it appears that the firm has concentrated for now on boosting its line of inflation-protected securities. As worries about the intermediate to long-term consequences of the massive stimulus packages implemented around the [...]

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ETF Database » TENZ

ETF Tax Efficiency Report Card

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