This Week in ETFs: April 23rd Edition

by on April 23, 2010 | ETFs Mentioned:

After news of fraud charges against Goldman Sachs broke last Friday, anxiety built over the weekend and investors watched nervously to see if markets would plummet this week. But markets saw a relatively clam week, with most indexes posting moderate gains despite more trouble in Greece and jumping gas prices. It was another eventful week in the world of ETF investing as well, with a handful of new fund launches and announcement of some exciting products in the pipeline (including a long-awaited automotive ETF). Below, we offer three of the best ETF articles from around the Web:

Copper: Short-Term Moves, Long-Term Outlook at Hard Assets Investor:

Despite relatively stable inventory levels, copper prices have surged over the last year. With investors wondering if the rally is running out of steam of just getting started, Julian Murdoch takes a look at some of the factors that generally drive copper prices. Murdoch examines China’s growth profile, noting that this emerging market accounts for a huge portion of global copper demand, as well as the impact that troubles at Goldman could have on the metal. “Wrapped up in a bow, most of the news and supply information suggests support for copper’s continued rally (Goldman be damned),” writes Murdoch. For more on copper ETF investing, see Three Reason Why the Copper ETF (JJC) is Soaring.

ETF Investors Are Horrible Market Timers, Study Says at IndexUniverse:

Is there a surefire way to beat the market during turbulent economic times? Olivier Ludwig dives into the latest research report from TribTabs to search for an answer. “According to TrimTabs, ETF investors are so bad at picking the right time to buy or short-sell the equity markets that those doing exactly the opposite of what ETF players did in the past 10 years would have ended up making sevenfold profits while the S&P 500 Index lost almost 18 percent,” writes Ludwig. The author goes on to discuss a few possible explanations for the shocking results, including one eye-opening possibility for some investors

VXX: The New UNG? at ETFdb:

There are remarkable similarities between UNG and VXX (iPath S&P 500 VIX Short-Term Futures ETN), even though each offer exposure to very dissimilar segments of the market; UNG invests in natural gas futures while VXX offers exposure to equity market volatility. But the impressive popularity of both of these products–despite dismal share price performance–indicates that they may be more alike than they seem.

Disclosure:  No positions at time of writing