ETF Trends

ETF Chart of the Day: VIX

Paul Weisbruch, Street One Financial — Fri, 10 Feb 2012 18:48:16 +0000

The CBOE Volatility Index or VIX, known as Wall Street’s fear gauge, was up about 10% on Friday afternoon as stocks pulled back on the latest Greece worries. In the past few sessions, we have observed the VIX creeping higher even though equity indices are also registering new recent...

Financial ETFs are Money in the Banks

Tom Lydon — Fri, 10 Feb 2012 16:01:05 +0000

Financial exchange traded funds are outperforming the market on strength in bank stocks and hopes the economic recovery is hitting escape velocity. Financial Select Sector SPDR (NYSEArca: XLF) followed the broader market lower on Friday but is up about 13% so far this year, compared with a gain of...

What is an ETF? — The Arbitrage Mechanism

Tom Lydon — Fri, 10 Feb 2012 15:43:50 +0000

Exchange traded funds have a so-called arbitrage mechanism that helps keep share prices in line with the value of the underlying securities or assets. Arbitrage is the practice of taking advantage of a price difference between two or more markets. Three points about ETFs and the arbitrage trading...

Gold ETFs and Greece: What’s Next?

Tom Lydon — Fri, 10 Feb 2012 14:59:20 +0000

With Greece inching ever so slowly toward a second bailout, many investors are wondering about the next steps for gold exchange traded funds if the Eurozone debt situation shows signs of easing. “The instability of the Eurozone provides for conflicting price drivers. While fears surrounding...

What are ETFs? — The Benefits of Transparency

Tom Lydon — Fri, 10 Feb 2012 14:51:58 +0000

In the aftermath of the credit meltdown and the more recent implosion of MF Global, many investors are putting a premium on transparency. They want to know exactly what they own. Transparency in an exchange traded fund involves the disclosure of the funds’ holdings every day, unlike mutual...

VIX ETFs Bounce on Greek Jitters as Stocks Near 2011 High

John Spence — Fri, 10 Feb 2012 13:30:43 +0000

VIX-linked exchange traded funds have been moving higher along with stocks all week, so something probably had to give. The usual relationship between Wall Street’s “fear gauge” and stocks was back in place on Friday with the S&P 500 set for a lower open as the Greek drama drags on. In...

ETF Spotlight: High-Yield Bonds

Tom Lydon — Fri, 10 Feb 2012 12:21:59 +0000

ETF spotlight on SPDR Barclays High Yield Bond (NYSEArca: JNK), part of an ongoing series. Assets: $11.1 billion. Objective: The SPDR Barclays High Yield Bond tries to reflect the performance of the Barclays Capital High Yield Very Liquid Index, which follows publicly issued U.S. dollar-denominated...

Why ETFs Could Hit $2 Trillion This Year

Tom Lydon — Fri, 10 Feb 2012 11:56:49 +0000

The exchange traded fund universe has attracted over $1 trillion in assets, but growth has tapered off as market volatility crippled the outlook on stocks last year. Still, with the economy and markets on the mend, the ETF industry could see $2 trillion by the end of the year. Currently, low market...

BATS Exchange Seeks to Expand ETF Listings

Tom Lydon — Fri, 10 Feb 2012 11:49:48 +0000

Bats Global Markets, the third-largest U.S. exchange, has received SEC approval to initiate a new program that could create more efficient trades on exchange traded funds and promote future ETF product launches on its own exchange. The exchange is seeking to entice market makers with its...

Muni Bond ETFs Continue March Higher

Tom Lydon — Thu, 09 Feb 2012 21:14:56 +0000

Municipal bond exchange traded funds are seeing money move in and low defaults have the sector enjoying its best start to a year since 1990 in terms of performance. “Investors are rushing back to municipals as evidenced by strong inflows of $6 billion in January. A combination of factors...

Solar ETFs Recharging with Over 50% Rally in 2012

John Spence — Thu, 09 Feb 2012 19:42:25 +0000

Exchange traded funds tracking solar energy stocks such as First Solar (NasdaqGS: FSLR) rallied 10% on Thursday with volume and performance picking up in the ETFs following a disastrous 2011. Shares of Guggenheim Solar ETF (NYSEArca: TAN) and Market Vectors Solar Energy (NYSEArca: KWT) are both...

Apple Lifts Nasdaq-100 ETF to New High

John Spence — Thu, 09 Feb 2012 18:14:09 +0000

An exchange traded fund indexed to the Nasdaq-100 rose to its highest level since 2000 on Thursday with the ETF’s gains fueled by largest holding and market bellwether: Apple (NasdaqGS: AAPL). The tech darling’s shares continue to power higher in the wake of Apple’s blowout fourth-quarter...

Currency ETF Chart of the Day: Brazil

Paul Weisbruch, Street One Financial — Thu, 09 Feb 2012 17:01:08 +0000

Exchange traded funds following the so-called BRIC nations of Brazil, Russia, India and China are off to a great start in 2012 both in terms of performance and asset inflows. Today we want to take a look at one of the currencies of a major BRIC player, Brazil. The iShares MSCI Brazil Index...

What Rising Treasury Yields Mean for Bond ETF Investors

John Spence — Thu, 09 Feb 2012 14:46:42 +0000

Rising U.S. Treasury yields have pushed government bond exchange traded funds lower so far in February on hopes Greek will seal a second financial bailout and ease tensions over the Eurozone debt crisis. A spike in yields would punish nervous investors who have piled into the perceived safety of...

Lithium ETF Rebounds on Improved Demand, Economy

Tom Lydon — Thu, 09 Feb 2012 12:30:07 +0000

After the steep drop-off last year when investors turned away from riskier commodity plays, the lithium exchange traded fund has surged this year on higher demand as global economies reveal improvements in manufacturing and consumption. Global X Lithium ETF (NYSEArca: LIT) is up 20.5% year-to-date,...