One of the most interesting success stories in the ETF industry is that of the United States Natural Gas Fund (UNG). After a moderately successful first 18 months that saw assets climb above $700 million, interest in natural gas as an investment surged in 2009 amidst big drops in prices, political pushes to reduce dependence on foreign oil, and dreams of widespread adoption of natural gas-powered cars. In 2009 cash inflows to UNG totaled nearly $5.6 billion, and fund assets grew by more than 600%. Unfortunately for the investors responsible for this growth, UNG was also one of the worst-performing ETFs of 2009, losing more than half of its value despite little annual change in spot natural gas prices. Although interest in UNG has waned in recent months, it remains one of the largest exchange-traded commodity products and a major holder of natural gas futures contracts (see Six Reasons UNG Is Due For A Comeback). [click to continue…]
Last year saw more than 100 new product launches, ranging from plain vanilla equity and bond funds to ETFs offering exposure to exotic new investment strategies and asset classes previously available only to a limited slice of the investing community. The innovation that has made ETFs a popular alternative to mutual funds seems ready to [...]
Chaos gripped Wall Street on Friday, as the likelihood that Ben Bernanke won’t be confirmed to a second term as Fed chairman surged and uncertainty swirled around the financial sector in the wake of Obama’s proposed regulations to curb risk. The technology sector also sunk following Google’s earnings report after the bell on Thursday. Despite [...]
The pace of innovation in the ETF industry accelerated in 2009, as issuers introduced countless new spins on the exchange-traded structure that provide investors with more options and more flexibility than ever before. Sector-specific emerging markets and China funds, convertible bond ETFs, and state-specific funds were among the exciting new products to hit the market [...]
After the unprecedented volatility of 2008 and the dramatic rally of 2009, the market over the past month or so has been quite boring, with indexes trending mostly sideways as stocks look for direction. This has led to greater risk tolerance among investors and has dramatically decreased anticipated volatility for the market. The Chicago Board [...]
As the ETF industry has continued its rapid expansion, there has been much debate surrounding the sustainability of the current growth and the potential saturation of the market. The first ETFs were relatively simple products, offering exposure to the world’s most widely-followed equity benchmarks. But the last ten years have seen hundreds of new ETFs [...]
Wednesday was a wild day for U.S. and global equity markets, with huge losses for most major benchmarks that conjured up images of late 2008, when seemingly every day saw a triple digit swing in the Dow. The ETFdb 60 Index, a benchmark that measures the performance of the universe of investable assets available through [...]
Equity and oil prices fell on Monday as the dollar strengthened, suggesting that the greenback remains a safe haven investment in times of economic uncertainty. Investors continued to dance around two psychologically and technically important levels: the 10,000 mark for the Dow Jones Industrial Average and the $1.50 mark for the dollar against the euro. [...]
Every investor has a few benchmarks that he or she watches closely to keep a pulse on the market. The S&P 500 and Dow Jones Industrial Average are perhaps the most widely-followed benchmarks in the U.S., recognized by just about everyone. The CBOE Volatility Index (better known as the VIX) doesn’t have nearly the level [...]
Friday was an action-packed day on Wall Street and around the world, with a disappointing GDP release in London, reports of a divided Federal Reserve, and a continued climb in commodity prices. The Dow fell more than 100 points to finish the week below the 10,000 mark, a level it has now crossed several times [...]
The Chicago Board Options Exchange Volatility Index, better known as the VIX, has been one of the most carefully-watched benchmarks since its inception in the early 1990s. In 2004, VIX futures gave investors a way to actually invest in the benchmark, as did VIX options in 2006 (both won the Most Innovative Product award at [...]