This Week In ETFs: June 24th Edition

by on June 24, 2012 | ETFs Mentioned:

As we come to the end of yet another tumultuous week in the stock market, one can only wonder if stability is in our sights. Negative news from the Philly Fed’s index of regional manufacturing combined with jobless claims and a fall in existing-home sales painted a bleak picture Thursday morning. Accordingly, the stock market suffered its second-worst loss of the year as the markets came to a close Thursday afternoon. Without the Fed signaling QE3 anytime soon, investors may be in for a tougher summer than expected. The eurozone continues to be under close watch as leaders prepare for a summit this upcoming week. Friday offered some relief to U.S. markets as the Dow Jones and S&P rose 71 and 10 points respectively; Bank and Healthcare shares lead the market rebound.

The product development front has picked up as this week saw the launch of three new ETFs: EMLPHECO and USMI.

Below we outline the three best stories from around ETF space this past week:

1. ETF Transparency Provides A Clear And Timely View at Money and Markets:

ETFs have the distinct advantage of being transparent in comparison to mutual funds. Being able to see the underlying holdings of an ETF has distinct advantages, especially in today’s volatile market. Author Ron Rowland puts an actively-managed mutual fund head-to-head with an ETF index. He points out the advantages to ETFs and clearly shows that active management does not always guarantee higher returns.

2. Beyond TIP: Five Inflation-Protected ETFs Worth A Look at Commodity HQ:

TIP, consisting of Treasury Inflation-Protected Securities, has long been thought of as the ideal inflation-fighting ETF within one’s investment portfolio. Unknown to many, there are a number of other ETFs suited to fare well within an inflationary environment. Andy Hagans outlines the top five alternative ETFs that fight inflation without relying solely on TIPS.

3. Three ETF Charts That Sum Up 2012 at ETF Database:

As we reach the half-way point of 2012, it is important to reflect on the year’s happenings and how they could affect future market trends. The article uses three charts to summarize key relationships between certain related ETFs. Michael Johnston expands on these charts and provides analysis on the apparent trends.

Disclosure: No positions at time of writing.