Thursday 30 April 2015

U.S. ETF Assets Grow In March, But Net Flow Slows

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

Assets of all exchange traded funds rose 0.1% in March to $2.063 trillion. Over the past 12 months, ETF assets increased $352.43 billion, or 21%. But net inflow slowed in March to $26.72 billion from $32.71 billion in February. Investors parked $21.84 billion in global and international ETFs in March. By comparison, domestic equity funds absorbed $6.15 billion. Small-cap and health care funds drew strong net inflow of $3 billion and $2.86 billion

Which Sector ETFs Will Gain As Dollar Resumes Rally?

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

The dollar's rise has been a boon to currency-hedged ETFs. But currency movements affect more than the international exchange traded funds that diversify your portfolio. They can impact how you allocate to domestic sectors and industries. "Investors seeking to position their portfolios for a stronger dollar should also be considering the challenges and opportunities when investing within the U.S.," says David Mazza, head of research for State

Tuesday 28 April 2015

Is India Too Expensive? Its ETFs Are In Trouble

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

What's ailing India ETFs? Star performers at the global level until recently, they've taken a tumble. Two of the largest exchange traded funds tracking the subcontinent's equities are each 10% off their old highs, set in early March. IShares MSCI India (INDA), with $3.6 billion in assets, has given up 6.2% so far in April and is up 0.1% year to date. The $2.28 billion WisdomTree India Earnings (EPI) has lost 5% and 1.7% in those periods. Both

Monday 27 April 2015

Amazon, Microsoft Cloud Profits Send 3 ETFs Higher

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

Internet-focused exchange traded funds popped Friday as quarterly earnings from Amazon and Microsoft revealed that their cloud businesses are big and growing. Investors holding these ETFs have more to watch out for: IBD Leaderboard stocks LinkedIn (LNKD) and Twitter (TWTR) report this week. "Amazon Web Services is a $5 billion business and still growing fast -- in fact, it's accelerating," CEO Jeff Bezos said in Amazon's (AMZN) earnings release.

Thursday 23 April 2015

3 Top ETFs With Apple Stakes Sizzle Ahead Q2 Earnings

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

Ready for Apple's earnings report Monday? Have you checked lately how much of the iPhone maker your ETF owns? Ahead of Apple's earnings report, take a look at three exchange traded funds with a big stake in the stock. How the market reacts to Apple's report could have a big impact on these ETFs and your investment success. Each ETF has the computer company, which weighs in with a market cap of $755.3 billion, as its No. 1 holding. And each sizzled

Wednesday 22 April 2015

5 Questions To Ask Before Investing In Smart Beta ETFs

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

Savvy investors know that smart beta ETFs use a weighting methodology other than market capitalization and aim to deliver a better risk-return trade-off. But for many, questions remain. Here are five to ask before investing in smart beta exchange traded funds, whose strategies select and rank stocks based on volatility, quality or several other measures: 1. What's my objective? If you're focused on investing at the lowest possible cost, a

iShares Expert Offers Tips On How To Invest In ETFs

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

Matt Raynor is a managing director at BlackRock iShares, the leading provider of ETFs in the U.S. and globally. He discusses how to invest in exchange traded funds for stock market gains and why investing success isn't as difficult as you might think. IBD: Can a currency hedged ETF strategy backfire? Matt Raynor: With the dollar gaining strength around the world, investors are increasingly looking for ways to hedge their

Monday 20 April 2015

Two Timber ETFs Felled Post Apple's Forest Buy

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

Timber! Two ETFs haven't felt the halo effect of Apple's massive forest buy. The exchange traded funds, which track the timber industry, fell after the Cupertino, Calif.-based company announced its green move Thursday. They continue to languish in intraday trade Monday. Apple's (AAPL) deal with The Conservation Fund to buy 36,000 acres of forest in Maine and North Carolina is more than another smart green move . It could ensure sustainable

Friday 17 April 2015

Alternatives Open Whole New World For ETF Investors

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



Yes Virginia, you can have something besides chocolate and vanilla. In the ETF world, you can put your hard-earned money into something that invests in things besides traditional stocks and bonds. Although they dominate the landscape, equity and fixed-income ETFs are not the only game in town. A growing field of alternative ETFs invest in such areas as currencies, commodities, real estate and private equity, and employ such strategies as tapping

Actively Managed ETFs Grow Quickly But Face Hurdles

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



Actively managed exchange traded funds are a small but fast-growing segment of the approximately $2 trillion ETF industry. But regulatory hurdles threaten to stunt their growth. Like traditional mutual funds, actively managed ETFs harness the buy and sell ideas of professional money managers who aim to outperform a benchmark index. But, unlike mutual funds, the ETFs allow investors to manage short-term risks by trading intraday and using tools

Investors' Go-To ETF Websites

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



When investment adviser Bob Williams shops for an exchange traded fund, he often goes right to the horse's mouth: the websites of such favored ETF providers as BlackRock, Invesco and IndexIQ. Evidently, he knows the fund families. "I've been using these issuers' ETFs for quite a while," explains Williams, of Simmons First Investment Group, Little Rock, Ark. So, by going directly to their ETF sites, he feels, "I'll get the freshest, most reliable

Should ETFs Be In Your Investment Portfolio?

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



While ETFs have existed for several decades, their popularity and diversity have exploded in recent years. But many investors are just learning about them. Those looking for tips on how to invest in ETFs just need some basic information to get started. In basic terms, ETFs can be thought of as mutual funds that trade like stocks. But their portfolios can contain U.S. and foreign stocks, bonds, futures, physical commodities or currencies. And ETFs

10 Ways To Use ETFs To Deal With Rising Interest Rates

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



Time is money, as they say. And for once, ETF investors are on the winning end as they have more time to prepare for the Federal Reserve's interest rate hikes, which are now expected to come later in the year. So, what income-producing ETFs are good investments in this environment? If you hold traditional fixed-income ETFs, you know that their value will go down as rates rise. But all is not lost. There are quite a few

These 3 ETFs Are Topping Peers In 3 Top Categories

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



Three popular ETF categories saw massive growth in 2014. Strategic beta funds grew assets by 25.8%, sector-based funds 26.8% and currency hedged funds 51.5%. These exchange traded funds also saw positive net inflow as investors used them to boost returns and lower risk. Strategic beta ETFs, also called smart beta ETFs, are the largest of the three categories. Among such funds, First Trust China AlphaDEX (FCA) is outperforming. It's up 27% year to

How To Invest In ETFs: Tips To Trade Top Market Trends

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



ETF trading offers a way to buck the conventional wisdom about investing in stocks and other financial markets. The conventional wisdom says you can't time the stock market. You should remain fully invested through bull and bear markets, and you'll prosper in the long run. That works for some, but for many investors, the long run is too far away. They prefer intermediate plays lasting weeks or months, taking profits as appropriate,

Hottest ETF Strategy: Factor Investing In Stocks

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



Factor investing is in. The term refers to ETFs that focus on stocks that share specific characteristics, or factors. Various market researchers have concluded that those factors are keys to outperformance. So certain ETF operators are trying to tilt the playing field in their favor by using indexes that favor those factors. Identifying factors that could boost your portfolio could be key to your investment success in ETFs. For

BlackRock iShares' Matt Raynor On Best ETF Strategies

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



Matt Raynor is a managing director at BlackRock iShares, the leading provider of ETFs in the U.S. and globally. He discusses how to invest in exchange traded funds for stock market gains and why investing success isn't as difficult as you might think. IBD: Can a currency hedged ETF strategy backfire? Matt Raynor: With the dollar gaining strength around the world, investors are increasingly looking for ways to hedge their

5 ETF Trends To Watch As Assets, Strategies Multiply

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



Exchange traded funds can be blunt-force objects or precision tools. An ETF investor can invest in the entire U.S. stock market with a single trade. Or access only those stocks that have grown dividends in each of the past 25 years. Or tap into a niche subindustry that's crushing the market with outsize profits. You want Akorn (AKRX), Horizon (HZNP) and other biotech and pharma names with drugs in clinical trials that could

4 ETF Strategists Weigh In On U.S., European Markets

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



If you're waiting for the market noise to subside before wading into stock ETFs, you could be waiting for a while. There's always market noise, but sometimes it's deafening -- like now -- and makes for a challenging investment environment. U.S. stocks still have the Fed on their side, and cybersecurity stocks are compelling -- European stocks even more so. So say four investment strategists well known in the world of exchange traded

Which New Dividend Stock ETF Is Best For You?

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



With interest rates still at record lows, many income seekers have turned to dividend stocks and ETFs as an alternative to traditional yield producers such as bonds and CDs. Many exchange traded fund providers are taking advantage of income stocks' popularity by finding new ways to slice and dice 'em. "I think the ones that existed beforehand gathered assets and became very popular, which encouraged new entrants into the

Thursday 16 April 2015

Emerging Market ETFs Soar; One Pocket Could Gain Most

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



Europe and Japan exchange traded funds took stock market leadership from the U.S. in the first quarter. Now another corner of the foreign field is starting to shine. Emerging market equity ETFs have seen a surge in both inflow and performance. "The shift back into emerging markets equities is the most significant development this month," David Santschi, CEO of TrimTabs Investment Research, wrote in an April 15 note. "The surge in China stocks

Wednesday 15 April 2015

ETFs: Is Window For Currency Hedge Closed?

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



Last year the ETF industry launched 10 currency-hedged exchanged traded funds, doubling the total number available, in time to maximize their potential against the falling yen and the euro. But some are now beginning to wonder if the strategy these ETFs follow has hit its sell-by date and the currency hedge is no longer needed. "When the euro cost $1.40, no one believed that Europe would do a quantitative easing," said Brent Schutte, senior

Tuesday 14 April 2015

What's Apple Doing For The Most-Traded ETFs?

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



The exchange traded funds with the highest dollar volume traded in a tight range the past month. SPDR S&P 500 (SPY), which has $176.98 billion in assets and averages $110.5 million in trading volume a day, is within 1% of its all-time high. It's climbed 2.03% in the past month and is up 2.18% year to date, according to Morningstar Inc. The stock-market-tracking ETF's largest holding is Apple (AAPL), which takes up nearly 4% of assets. It's

Solar ETFs Light The Way As Equities Post Broad Gains

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



Value stocks gained ground with ETF investors in the past month as the markets remain choppy. But growth-oriented exchange traded funds continue to lead year to date. They tend to hold more stocks that offer the promise of higher returns, while presenting greater risks. Value-oriented ETFs focus on safer, more mature stocks. SPDR S&P 500 (SPY), which tracks the broad stock market, rose 2% during the last four weeks. It's up 2.2% so far in 2015.

Schwab Disrupts ETF Industry And Plans To Keep At It

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



Schwab ETFs are growing fast. In just over five years, Schwab's 21 exchange traded funds have captured $30 billion in assets and 1.5% of total market share. It's now the seventh largest ETF provider in asset size, up from 10th a year ago. John Sturiale, a senior vice president at Charles Schwab (SCHW) Investment Management (CSIM), helped craft the brokerage's target retirement date funds in 2002. More recently, he created fundamentally weighted,

Monday 13 April 2015

China ETFs Soar; Small Caps Key To Investing Success?

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



International exchange traded funds diversify investor portfolios. Foreign small caps do so even more. So say ETF strategists at CLS Investments in a new white paper titled "Why International: The Case For International Investing." "Many large international companies are global giants ... with broad market conditions heavily impacting their earnings," the authors wrote. "On the other hand, many smaller companies are more dependent on the

Wednesday 8 April 2015

Comparing ETFs? Don't Just Look At Expense Ratios

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



The rule when buying ETFs is that when all things are equal, buy the one with the lowest expense ratio. But remember that similar sounding ETFs often aren't equal. This means don't let the expense ratio be the only factor in choosing an ETF. "Our belief is expenses and past performance matter, but more important is understanding what's inside the portfolio," said Todd Rosenbluth, S&P Capital IQ director of ETF research. SPDR S&P 500 ETF (SPY)

Monday 6 April 2015

This ETF's Got The 3 Hottest Cybersecurity Stocks

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



For some ETF investors, a hacker's pain is their gain. Several exchange traded funds invest in companies providing hardware, software and services to foil cyberattacks. They target an essential subindustry at a critical time. High-profile data breaches at Sony (SNE) movie studio and JPMorgan Chase (JPM) have put a spotlight on a fast-growing threat in our increasingly digital lives. On Wednesday, President Obama authorized sanctions against

Wednesday 1 April 2015

Currency Hedged ETFs: 3 Pitfalls For Booming Strategy

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



Investors parried currency risk in their ETF portfolios as the dollar rose in the first quarter. They poured money into the year-old iShares Currency Hedged MSCI Germany (HEWG), which has $1.3 billion in assets. Assets rose 817.6% from Dec. 31 to March 31. Assets of unhedged $6.67 billion iShares MSCI Germany (EWG) grew 46.9% over the same period. Currency hedging makes sense for U.S. investors when the dollar gains vs. foreign currencies. When