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Displaying 21-30 out of 62 results for "Leveraged ETF".

As New ETFs Come and Go, Big Ones Remain Big

A recent Seeking Alpha article argues that with six new ETFs coming into the market and 18 being closed or redeemed, the past August signaled the beginning of a consolidation process in the ETF industry. There are good reasons to believe the author is right: with ETF issuers rolling out more and more ETFs each month, those having failed to catch investors' eyes quick enough are bound to disappear with the ever-intensifying competition. On the other hand, it also got us curious: what about...

ETFs: Easy Come, Easy Go

Last month we pointed out a growing number of ETF closures across a variety of issuers. Hot on their heels, several issuers announced new ETF issuances offering a wide variety of strategies, including many actively managed ETFs, which seem to be all the rage these days.

UBS recently announced that it would redeem 12 of its 13 volatility-linked ETNs on September 12. These twelve funds are actually six pairs of 1x long and 1x inverse notes linked to the performance of VIX futures portfolios...

ETFs in Mutual Funds: a Raw Deal?

Ian Salisbury at SmartMoney raises an interesting point:

The whole point of actively run funds, their proponents say, is that a living, breathing fund manager has a better chance of sussing out great investment opportunities than an exchange-traded fund, which just blindly tracks an index. Indeed, that's one of the reasons actively managed funds have higher fees than ETFs -- to pay for all that expert guidance.
So it might come as a shock to some investors that the top holdings of several...

SEC Investor Bulletin on ETFs

The SEC recently released an Investor Bulletin on ETFs which provides background information about ETFs in general and defines several terms which may be confusing to investors. ETFs can be complex and risky investments, as they allow nearly anyone to purchase portfolios which would typically only be suitable for sophisticated investors or traders.

Some commentators were not satisfied with the Bulletin, particularly its lack of new guidelines related to leveraged and inverse products. Paul...

Many ETF Issuers Consolidating Offerings

As inflows to ETFs have exploded over the past few years, many issuers expanded their lineup of funds to take advantage of the increased investor interest. Some have tried to compete with established funds by creating funds with very similar exposure, while others have offered highly specific investment strategies in an attempt to capture a niche market.

In general the ETF market has exhibited a 'winner take all' pattern whereby the oldest and largest funds attract by far the most investor...

Direxion to Close Several Leveraged ETFs

Direxion Shares ETF Trust announced last week that -- upon recommendation of the trust's advisor Rafferty Asset Management, LLC -- nine daily leveraged and inverse Exchange Traded Funds will be liquidated and shares will no longer be open for purchase as of early next month. From the announcement,

Due to the Funds' inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result,...

Mutual Fund and ETF Issuers Competing on Fees

In March, we posted a graph of the returns and fees of the 25 largest funds by net assets and called attention to the striking difference in fees between funds offered by the Vanguard Group and those offered by American Funds. While both had very similar 5-year annualized total returns, the Vanguard funds had significantly lower fees.

Today the Wall Street Journal ran an article about how Vanguard's funds have attracted net inflows of $452 billion from January 2008 to June 2012, while...

ETFs are Finding Their Way into 401(k) Plans

In a recent blog post we discussed how mutual fund fees can drastically reduce funds available for retirement (see "401(k) Fees Can Drastically Reduce Nest Egg"). We cited a paper from the Center for Retirement Research that studied a typical 401(k) plan's investment costs, which including advertising fees, administration fees, asset management fees, and trading costs total 1-2% of assets annually. The paper proposed boosting the returns of 401(k) plans by investing in passively managed and...

FINRA Issues Warning on ETNs

The Financial Industry Regulatory Authority (FINRA) recently issued an Investor Alert regarding the risks of exchange-traded notes (ETNs).

ETNs are a type of unsecured debt instrument typically issued by banks and other financial institutions. Similar to its close cousin the exchange-traded fund (ETF), ETNs track the returns of a specified asset class--often an index. However, unlike ETFs, ETNs do not hold actual assets tracked by the underlying index. This means investors in ETNs can suffer...

Another ETN Halts New Share Redemptions, Creates Premium

In March we reported on TVIX, the leveraged volatility-linked exchange-traded note (ETN) which started trading at a very large premium to indicative value after its issuer halted the creation of new shares. Bloomberg's Matt Robinson is reporting that AMJ, a JPMorgan ETN linked to oil partnerships, has also limited new share creations and is developing a similar premium.

JPMorgan limited new share creations on June 14, and the premium to indicative value (the value of the underlying index) has...

62 Results