Thursday 10 September 2015

That Low Cost ETF Could End Up Costing You

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

What does your ETF cost? If your answer is the prospectus net expense ratio, you got it wrong. Of course the expense ratio is important. It rolls in the fees paid to those who manage a fund and to those who have custody of the assets. Those costs are deducted directly from your ETF's returns and mean less money in your pocket, says Ben Johnson, director of global ETF research for Morningstar. "As Jack Bogle (Vanguard's founder) has reminded us

Brazil ETFs Get Whacked On 'Junk' Credit Downgrade

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Brazil ETFs sold off briskly Thursday, a day after the country was downgraded to "junk" status by a U.S. credit rating agency. Major stock exchange traded funds rallied in afternoon trade as investors digested mixed economic data, including falling import prices and a drop in weekly jobless claims. Market Vectors Brazil Small-Cap (BRF) dropped 3.7% to 11.36 in the stock market today. The ETF is 62% off its 52-week high of 30.45, set a year ago.

Internet ETFs Slip As Apple's Web Ambitions Grow

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Internet stock ETFs reversed sharply Wednesday along with the broad market as data showed that job openings surged in July. The news rattled investors, sparking fears of an earlier-than-expected rate hike. Internet stocks trimmed early gains amid today's launch of a new Web-focused Apple TV. First Trust Dow Jones Internet (FDN) inched 0.07% lower on the stock market today. Among its top holdings, Amazon (AMZN), Priceline (PCLN) and Google (GOOGL)

Wednesday 9 September 2015

Internet ETFs Gain As Netflix Eyes Asia

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Internet stock ETFs led the technology rally Wednesday as fiscal moves in China and Japan lifted investor sentiment. However, exchange traded funds tracking major domestic indexes trimmed gains by midday as data showed that job openings surged in July. Social media and Internet stocks, led by Netflix (NFLX), bagged gains. The streaming TV giant recently launched in Japan and this week announced plans to expand services to Hong Kong, Singapore,

Tuesday 8 September 2015

What ETF Investors Can Do When Market Is Volatile

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

You're rattled, and you have reason to be. It's scary when your hard-earned investments are gouged more than 6% in a month, as S&P 500 ETFs were in August. It's been three years since SPDR S&P 500 (SPY) took such a big monthly hit. So what to do? Different action is called for from different types of exchange traded fund investors, experts say. But mainly, don't panic. The average long-term investor is better off not heeding advice from traders to

Chip ETFs Pop As New Apple IPhones Loom; China Spikes

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Chip-stock ETFs surged Tuesday ahead of Apple 's (AAPL) reveal of new iPhones, leading a broad rally in the U.S. stock market after last week's pummeling. Exchange traded funds tracking major indexes recovered somewhat from their second-worst weekly decline of 2015. Meanwhile, China ETFs spiked as much as 13%, with weak export data buoying investors' hopes of fresh stimulus measures. SPDR S&P Semiconductor (XSD) popped 3.6% on the stock market

ETFs Vs. Mutual Funds: Score One For ETFs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Either way you don't lose. Actively managed mutual funds are a great way to diversify portfolios. So are index-tracking exchange traded funds. But there's one key advantage that ETFs offer: low portfolio turnover. Turnover is the percentage of a fund's underlying holdings that's bought or sold over a one-year period. That number can approach 100% for some mutual funds trying to beat the market, say investing experts at Charles Schwab. For example,

Friday 4 September 2015

NorthCoast Cushioned By Diversification, Now Looks For Bargains

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

August brought an extreme dose of volatility for stocks. Many indexes entered correction territory as investors became jittery on concerns of slowing growth in China. NorthCoast Asset Management seized the opportunity to adjust its ETF retirement portfolios amid the pullback. "Rebalancing the portfolios during volatile periods enables us to add value and create alpha," said Patrick Jamin, chief investment officer for NorthCoast.

Financial ETFs Fall On Weak Jobs Data As Fed Eyed

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Financial sector ETFs stumbled hard Friday on a mixed jobs report. Benchmark ETFs reversed sharply as investors weighed the implications of slower job growth on the timing of the Federal Reserve's normalization of interest rates. However, a decline in joblessness and signs of wage growth may keep the case for a rate hike alive. The financial sector is especially sensitive to monetary policy. For banks and insurers, rising rates tend to mean higher

Thursday 3 September 2015

This ETF Is Twice As Nice: Low Volatility, High Yield

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Let's leave the wild gyrations to Nicki Minaj. The stock market's erratic moves this quarter frayed ETF investors' nerves and sent them scurrying to products that promise a smoother ride. Many dividend ETFs are packed with larger, blue-chip companies that are seen as more stable. And low volatility exchange traded funds specifically target the risk-averse investor. But why settle for one or the other? An ETF offering both high dividends and low

Draghi's Birthday Gift: Germany ETFs Pop On QE Hints

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Germany ETFs steered higher Thursday as investors cheered news of continued stimulus in Europe. U.S. and international stock ETFs traded higher, buoyed by data showing a slowing down in layoffs and comments from the European Central Bank. European stocks rallied as ECB President Mario Draghi, who turned 68 today, cut growth forecasts and hinted that more quantitative easing could be needed. The German DAX rose more than 3%. IShares MSCI Germany

Wednesday 2 September 2015

Chip, Biotech ETFs, Gutted In August, Lead Relief Rally

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Major U.S. index ETFs jabbed higher Wednesday, rallying after a two-day rout as Chinese markets calmed and domestic data showed jobs and productivity gains. In late morning trade, ETFs tracking the S&P 500 index rose enough to trim their losses from their 52-week highs to under 10%. That level is widely seen as the threshold for a correction. SPDR S&P 500 (SPY) popped 0.7%, with technology leading the sectors higher and utilities the greatest

Tuesday 1 September 2015

U.S. ETFs Knocked Back Further; China ETFs Gouged

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

U.S. ETFs swooned Tuesday afternoon, with the major domestic indexes trading in or near correction territory. Global markets sold off on grim factory data from China that suggest the world's second-largest economy may be headed for a hard landing. A grim mood gripped investors on the first trading day of September, with reports of deep cuts in corporate spending in Japan and a sharp drop in exports in South Korea. Meanwhile, the latest data show

Monday 31 August 2015

NorthCoast Cushioned By Diversification, Now Looks For Bargains

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

August brought an extreme dose of volatility for stocks. Many indexes entered correction territory as investors became jittery on concerns of slowing growth in China. NorthCoast Asset Management seized the opportunity to adjust its ETF retirement portfolios amid the pullback. "Rebalancing the portfolios during volatile periods enables us to add value and create alpha," said Patrick Jamin, chief investment officer for NorthCoast.

You're Not ETF Tax-Loss Harvesting? You're Losing Out

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The stock market's in a correction, with bellwether ETFs holding U.S. stocks poised for their biggest monthly loss since 2012. Don't panic. Savvy ETF investors see a downtrending market as an opportunity. As they wait for an uptrend to resume, they may adjust exposures within their ETF portfolios or add to and subtract from their watch lists. There's something else you could be doing. Now's a good time to use a tax-loss harvesting strategy, says