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EFAV

May proved to be a brutal month on Wall Street, as equity markets across the board plummeted into red territory. Poor U.S. economic data coupled with revived Euro Zone tensions painted a grim picture for the future of the global economic recovery. With investors watching their bottom lines quickly erode, many are looking for ways to minimize their exposure to the riskier and more volatile segments of the market [see also Three High-Yielding Monthly Dividend ETFs].

Enter Low Volatility ETFs. With over a dozen products to chose from, this ultra popular category of ETFs has raked in close to $2 billion in aggregate assets. Intuitively, these products are very appealing, especially for risk averse investors. But, as many investors have learned the hard way, compelling ideas don’t always translate into compelling performances [see our Low Volatility ETFdb Portfolio]. [click to continue…]

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One of the most noteworthy innovations in the ETF industry over the last several years has been the development of funds that deliver targeted exposure to investment “factors”, allowing for easy access to techniques that previously required extensive research and maintenance. From high momentum to low beta, there are now ETFs that slice and dice broad equity indexes in a number of different ways to deliver unique risk/return profiles.

ETFs focusing on low volatility stocks have become immediately popular with investors; eight such products have debuted over the last year, and they have already accumulated close to $1 billion in assets. The PowerShares S&P 500 Low Volatility Portfolio (SPLV), which targets the 100 components of the S&P 500 with lowest historical volatility, has gathered about $880 million since debuting last May. Other ETFs exist targeting low volatility stocks in emerging markets (EEMV), developed markets outside the U.S. (EFAV, XLVO), and small cap domestic equities (SLYV) [see also Inverse VIX ETN (XIV) Gets Hot Again].  [click to continue…]

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Innovation has come to be expected in the ETF industry, where a number of developments over the last several years have made a number of new asset classes and investment strategies accessible through the low-cost, tax-efficient exchange-traded structure. From leveraged ETFs to commodity ETPs to VIX-based products, there have been a number of “firsts” in […]

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Russell, the longtime index provider in the midst of a major push into the ETF issuer business, continued the rapid expansion of its product lineup this week with the introduction of its first international equity funds. The company launched three new funds focusing on developed markets outside of the U.S., with each targeting exposure based […]

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The third quarter got off to a sizzling start in the ETF industry; a surge in asset prices boosted asset levels significantly after two months of freefalls, and the product development activity remained strong after a busy month of September. Close to 30 new products began trading last month, including many first-to-market ideas that have […]

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Markets Clear Technical Hurdle

by on October 22, 2011

Earnings season is well underway and investors on Wall Street appear to be quite content with the latest round of corporate performance results from industry leaders. Debt-woes stemming from the Euro zone continue to dominate headlines as investors anxiously await for policymakers to agree upon a comprehensive plan in the near future. Domestic equity indexes […]

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iShares, the largest issuer of ETFs in the U.S. by total assets, rolled out another suite of funds on Thursday that offer targeted exposure to domestic and international equity markets. The new iShares minimum volatility ETFs are the latest in a trend of products targeting specific investment factors and disciplines, following similar offerings in recent […]

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