This Week In ETFs: October 16th Edition

by on October 16, 2010 | ETFs Mentioned:

This past week was an eventful one as markets oscillated between solid gains and steep losses which eventually left the market marginally higher than its open on Monday. Perhaps the biggest story of the week came out of the surging commodity markets where gold continued its march higher, hitting a new record when it broke the $1,380 per ounce mark earlier this week. Investors also saw the beginning of the fall earnings season period as major reports from industry bellwethers– such as Intel and JP Morgan– helped to move the markets. Many were anxious to see how these firms fared during the summer stock market surge and if their results could match the upswing in equities during the same period. Below, we highlight three of the best ETF stories from around the Web during the last week:

McCall’s Call: Bracing For Inflation With ETFs at Index Universe:

Speculation about the Fed implementing another round of quantitative easing on the economy has left many fearful that inflation will spike in the near-term. Matthew McCall then outlines the overwhelming evidence piling up in favor of inflation rising in the near future. As evidence for his thesis, Matt points out how popular all the ETFs that track the inflation protected bond market have been so far in 2010 despite ultra-low interest rates; clearly investors must believe that inflation is right around the corner otherwise they would not be piling into such low-yielding securities. McCall then goes on to offer advice on how to hedge against inflation with a number of ETFs that should perform well under these conditions.

How to Short Gold…If You Dare at ETF Zone:

As gold prices have hit new highs on a weekly basis, many investors fear that a bubble has formed, and may be poised to pop. This article outlines why gold has seen a historic surge, and also factors that could send the price of gold tanking. Finally, the article outlines how to short many popular gold ETFs as well as alternative ways to play the yellow metal on the short side for investors who wish to bet against further appreciation of this extremely popular investment.

Case For The Emerging Markets Consumer ETF (ECON) at ETF Database:

With developed economies hitting a plateau for growth, many investors have turned to emerging markets to generate solid and steady returns for their portfolios. This article outlines the enviable growth that emerging nations are experiencing and how to play them with ETFs. While this market has been sparse in years past, one new fund seeks to offer broad based exposure to the emerging market consumer; EG Shares’ ECON. Eric Dutram spoke with the CIO of EG Shares, Richard Kang, to get the full scoop on this unique fund in order to get a better understanding of the product’s methodology, weighting system, and why investors should consider adding the new fund to their portfolio.

Disclosure: No positions at time of writing.