Posts tagged as:

VGT

This article was written by David Trainer, CEO of New Constructs. 

Having too many choices can be intimidating for many investors and there are definitely lots of choices when it comes to ETFs. For example, in the equity market alone, there are 30+ technology sector ETFs, or 35 ‘large cap value’ and 20 financial ETFs. A very healthy selection abounds for every category of ETF.

The problem is that these ETFs are not made the same even though they may be in the same category. There are major differences in methodologies between funds, which results in drastically different holdings even within a given sector. Consider the chart below (figure 1) which compares all of the ETFs in the Technology Equities ETFdb Category and the number of holdings within each fund: [click to continue…]

{ Comments on this entry are closed }

With interest rates still hovering just above zero and growing concerns over an unavoidable uptick in inflation, many investors are anticipating that the Federal Reserve will have no choice but to raise rates from their historically low levels in the near future. Ben Bernanke, the Chairman of the Fed, recently unveiled a strategy to unwind and exit some of the many programs that the Fed rolled out after the market crash of 2008. These programs quickly grew the Fed’s balance sheet to over $2 trillion and Bernanke has vowed to shrink this number but he currently finds himself in a precarious position that is sure to alienate some no matter how the Chairman exits the programs. “If the Fed seeks to shrink its balance sheet quickly, Bernanke could be blamed for taking losses,” writes Kevin Hall. “If the Fed’s balance sheet stays large, critics may see this policy change as a subsidy in the payment of high interest rates to banks.” This delicate balancing act will be a difficult test for Bernanke, who must also juggle the threat of a double dip with the risks of inflation eroding the purchasing power of ordinary Americans and driving away foreign creditors. [click to continue…]

{ Comments on this entry are closed }

Google, the world leader in online search, has frequently been in the news as of late. With the announcement of their new open source phone, the Nexus One, and their threat to leave China over censorship concerns, it has been a very tumultuous quarter for the search giant. The rocky year continued late Thursday as […]

{ Comments on this entry are closed }

The reasons for the rise of the ETF industry are numerous: intraday liquidity, (potentially) superior tax efficiency, and enhanced transparency relative to traditional actively-managed mutual funds have all contributed to the billions of dollars of inflows that these funds have seen in recent years. But the real attraction for most ETF investors is the reduced […]

{ Comments on this entry are closed }

Tech ETFs In Focus Ahead Of Google Earnings Report

by on October 15, 2009 | Updated October 16, 2009

After a strong earnings report from Intel on Tuesday (the company beat the Street’s estimates by seven cents) all eyes will now be on IBM and Google to see if they carry the positive momentum into the fourth quarter. Confirmation of a recovery by these two bellwethers will add further confidence to those who believe […]

{ Comments on this entry are closed }