As the roster of exchange-traded products has grown to nearly 1,300, many investors find themselves with the luxury of multiple options for establishing a position in a desired asset class. There are, for example, four different pharmaceutical ETFs, three homebuilder funds, and even two choices for playing the automotive industry.
Once the ETF universe has been whittled down to funds that fit a given investment objective, there are a number of strategies for determining which of the candidates represents the most efficient way to play. It makes sense, for example, to compare ETFs on the basis of expenses, depth of holdings, liquidity, and tracking error. But many investors are much more basic in their assessments; there is a tendency among ETF investors to gravitate towards the biggest products in favor of smaller or lesser-known funds. If bigger is indeed better, this approach should work well; the size of a product would reflect its general efficiency and usefulness to investors. But in reality, a big AUM total is just as likely to result from a lengthy operating history and strong brand recognition. For ETF investors, following the crowd isn’t always the best path; often, there are better options available for those willing to dig a bit deeper [sign up for a free Pro trial to access the special ETF research report Gold ETFs In Focus]. [click to continue…]
Last week we highlighted several often-overlooked nuances of popular exchange-traded products, detailing the surprisingly large impact that seemingly minor distinctions can have on a portfolio’s risk/return profile. From the weighting methodology employed by the underlying index to the choice between large caps and small caps for international equity exposure, many details that are often the [...]
After a chaotic 2008, most financial markets regained some degree of normalcy in 2009, as unprecedented volatilities subsided and a gradual calming of anxieties led to the return of rational trading. But for exchange-traded commodity products 2009 was a rather tumultuous period, as expectations for increasingly stringent regulations swirled and correlations began to break down.
by Andy H on October 29, 2009 | Updated April 25, 2012
UPDATED: 4/18/2012 The label “gold bug” may suggest a kooky old man who spends a lot of time in his basement reading conspiracy theory newsletters. The truth, however, is that there are many legitimate reasons to trade in gold and its derivatives. Gold has been proven time and time again to be an excellent “safe [...]
The Gold Rush of 2009 likely hasn’t come as a complete surprise to too many investors. After all, gold has been proven time and time again to be a “safe haven” investment that rises during uncertain economic times (such as the last two years), and questions about the dollar’s future as the world’s reserve currency [...]
ETF Securities, already a household name in the European ETF industry, is quickly becoming a major player in the ETF space here in the U.S. The London-based ETF sponsor announced today the launch of the ETFS Physical Swiss Gold Shares (SGOL), its second U.S.-listed ETF. The new offering is physically-backed by gold bullion held in [...]
As equity markets continue to surge and developed economies around the world begin showing signs of stability, many thought that huge inflows into gold ETFs that have occurred over the last year would begin to reverse. Think again.
It’s no secret that ETFs are rapidly attracting investor dollars away from traditional mutual funds and other investment vehicles. Coupled with the rise of the ETF industry as a whole, an extended period of extreme financial turmoil has made gold ETFs one of the most popular investments in today’s environment. To meet the demand, a number [...]
