Alternative TIPS ETFs To Hedge Against Inflation [View article]
Hi,
According to the summary prospectus, ILB can enter foreign currency transactions, like currency forwards, which help mitigate the currency risks in investing in international bonds.
A Technology ETF For Cyclical Sector Rotation [View article]
Hi,
Looking at the holdings, IYW leans more toward software/hardware tech firms and has a heavier tilt toward its top holdings, namely AAPL. On the other hand, IGM is a more broad technology sector play, which includes internet and services companies.
Depending on an investor's technology sub-sector outlook, one can take a targeted or broader play.
Defined Maturity Bond ETFs Have Room To Grow [View article]
Hi,
According to Guggenheim Investments:
"In the last six months of operation, when the bonds held in the Fund matured, the Fund’s portfolio transitioned to cash and cash equivalents, including without limitation U.S. Treasury Bills and investment grade commercial paper."
Which ETFs Are More At Risk To Closures? [View article]
Hi Ron,
This was an emailed research note, titled "Trading Strategy: Thinking about launching an ETF? Not so fast...", dated 25Mar13. I'm not sure if it is available online.
Which ETFs Are More At Risk To Closures? [View article]
Hi John,
3 of the ETNs were Lehman funds that closed during the financial crisis - RAW, EOH and PPE. The other was a Bear Sterns fund, which was acquired by JP Morgan, and later liquidated.
iShares Launches Target-Date Corporate Bond ETFs To Hedge Rising Rates [View article]
hi,
Looking at the investment grade corporate debt market, most funds have a significant allocation toward the financial sector, which provides higher yields but comes with greater risks.
These new target-date corporate bond ETFs exclude exposure to the financial sector. Consequently, they are heavily weighted toward industrials.
FlexShares Launches 3 International Dividend ETFs [View article]
Hi,
Since the three FlexShares domestic dividend ETFs - QDF, QDYN and QDEF - were launched in December 2012, the three funds have not had enough time to generate an annual dividend yield. As such, the 30-day SEC yield is provided, instead.
The First Nigeria And Central Asia ETFs [View article]
Hi,
According to Morningstar, AZIA's average volume is around 16,000 - the fund has $2.2 million in assets under management. The spread is currently trading around 4.1%.
VXX ETF Traders Are Gluttons For Punishment [View article]
Hi Scoe,
In a normal futures curve, futures with longer maturity dates have higher prices.
As we approach the contract's maturity date, the futures price converges with the spot price.
In a contangoed market, the futures price is above the expected spot price, and since a contract's futures price must converge on the spot price as we approach the maturity date, we would expect falling prices over time.
In your example, if the the VIX fund sold front month contracts for $15 and bought the next month's contract for $17, the fund is essentially selling low and buying high. However, in a contangoed market, the prices are continuously falling, so the fund could be repeating its actions of selling low and buying high each month.
For those interested in looking up the VIX futures curve, you can check out: http://bit.ly/oWab64
Is The High-Yield Bond ETF Party Finally Over? [View article]
Hi Jerbear,
After being heavy on cash, more investors are incrementally increasing their exposure as they ride the rally. Given the current bull rally, it Is not surprising that we are witnessing a greater shift into equities.
Looking ahead, interest rate risk poses a great head wind for the fixed-income market – Treasury yields are at a three decade low. It is more likely that yields will rise rather than fall even further as we approach bubble territory in the Treasuries market. Consequently, investors are more wary of a dip in the bonds market than in the equities market.
DIV includes high-yield U.S. stocks, but the index requires securities to have a beta less than 0.85 relative to the S&P 500. So, it has a built-in low-volatility mechanism.
From what I can gather, Water Asset Management is a private equity fund that invests in water rights, such as those related to agriculture and industrials. Since it is a private equity fund, it would not be quoted on a public exchange.
The water-related ETFs, on the other hand, follow companies that conserve or purify water for homes and businesses. They are an easy way to gain exposure to the water industry since the ETFs can be traded daily like stocks.
An ETF That Tracks Consistent Dividend Payers [View article]
Hi Zach,
The underlying index is part of the S&P Dow Jones Indices. http://bit.ly/10wjKud----
The index is weighted by indicated annual dividend yield; no stock represents more than 4%; each component has at least $2 billion in assets and a 3-month average daily volume of $5 million. Constituents also must be from the S&P Composite 1500, increased dividends every year over the last 20 years.
Major rebalances occur once a year in January to account for changes in the Dividend Aristocrat universe. Minor adjustments occur in April, July and October.
Stocks are weighted by yield, with a cap at 4%.
Currently, the fund is trading at a 0.03% discount to its NAV.
Year-to-date, the S&P High Yield Dividend Aristocrats is up 11.4%, S&P 1500 is up 9.4% and the S&P 500 is up 9.2%.
Alternative TIPS ETFs To Hedge Against Inflation [View article]
According to the summary prospectus, ILB can enter foreign currency transactions, like currency forwards, which help mitigate the currency risks in investing in international bonds.
Best regards,
Tom
A Technology ETF For Cyclical Sector Rotation [View article]
Looking at the holdings, IYW leans more toward software/hardware tech firms and has a heavier tilt toward its top holdings, namely AAPL. On the other hand, IGM is a more broad technology sector play, which includes internet and services companies.
Depending on an investor's technology sub-sector outlook, one can take a targeted or broader play.
Best regards,
Tom
Defined Maturity Bond ETFs Have Room To Grow [View article]
According to Guggenheim Investments:
"In the last six months of operation, when the bonds held in the Fund matured, the Fund’s portfolio transitioned to cash and cash equivalents, including without limitation U.S. Treasury Bills and investment grade commercial paper."
Best regards,
Tom
Which ETFs Are More At Risk To Closures? [View article]
This was an emailed research note, titled "Trading Strategy: Thinking about launching an ETF? Not so fast...", dated 25Mar13. I'm not sure if it is available online.
Best,
Tom
Which ETFs Are More At Risk To Closures? [View article]
3 of the ETNs were Lehman funds that closed during the financial crisis - RAW, EOH and PPE. The other was a Bear Sterns fund, which was acquired by JP Morgan, and later liquidated.
Best regards,
Tom
iShares Launches Target-Date Corporate Bond ETFs To Hedge Rising Rates [View article]
Looking at the investment grade corporate debt market, most funds have a significant allocation toward the financial sector, which provides higher yields but comes with greater risks.
These new target-date corporate bond ETFs exclude exposure to the financial sector. Consequently, they are heavily weighted toward industrials.
Best regards,
Tom
FlexShares Launches 3 International Dividend ETFs [View article]
Since the three FlexShares domestic dividend ETFs - QDF, QDYN and QDEF - were launched in December 2012, the three funds have not had enough time to generate an annual dividend yield. As such, the 30-day SEC yield is provided, instead.
Best,
Tom
The First Nigeria And Central Asia ETFs [View article]
According to Morningstar, AZIA's average volume is around 16,000 - the fund has $2.2 million in assets under management. The spread is currently trading around 4.1%.
Best,
Tom
VXX ETF Traders Are Gluttons For Punishment [View article]
In a normal futures curve, futures with longer maturity dates have higher prices.
As we approach the contract's maturity date, the futures price converges with the spot price.
In a contangoed market, the futures price is above the expected spot price, and since a contract's futures price must converge on the spot price as we approach the maturity date, we would expect falling prices over time.
In your example, if the the VIX fund sold front month contracts for $15 and bought the next month's contract for $17, the fund is essentially selling low and buying high. However, in a contangoed market, the prices are continuously falling, so the fund could be repeating its actions of selling low and buying high each month.
For those interested in looking up the VIX futures curve, you can check out: http://bit.ly/oWab64
Best regards,
Tom
Is The High-Yield Bond ETF Party Finally Over? [View article]
After being heavy on cash, more investors are incrementally increasing their exposure as they ride the rally. Given the current bull rally, it Is not surprising that we are witnessing a greater shift into equities.
Looking ahead, interest rate risk poses a great head wind for the fixed-income market – Treasury yields are at a three decade low. It is more likely that yields will rise rather than fall even further as we approach bubble territory in the Treasuries market. Consequently, investors are more wary of a dip in the bonds market than in the equities market.
Best regards,
Tom
Low-Volatility ETFs: Strong Demand, Performance With Downside Protection [View article]
I have a couple of stories related to DIV:
http://bit.ly/Y1NJeN
http://bit.ly/YIo7PI
DIV includes high-yield U.S. stocks, but the index requires securities to have a beta less than 0.85 relative to the S&P 500. So, it has a built-in low-volatility mechanism.
Best regards,
Tom
Water ETFs: The Next Commodity? [View article]
From what I can gather, Water Asset Management is a private equity fund that invests in water rights, such as those related to agriculture and industrials. Since it is a private equity fund, it would not be quoted on a public exchange.
The water-related ETFs, on the other hand, follow companies that conserve or purify water for homes and businesses. They are an easy way to gain exposure to the water industry since the ETFs can be traded daily like stocks.
Best regards,
Tom
Preferred Stock ETFs: An Alternative Source Of Yield [View article]
Instead, the ETF leans towards REITs 31%, electronics 24% and the auto industry 10%.
The fund still has an attractive payout, with a 6.06% 30-day SEC yield.
Best regards,
Tom
An ETF That Tracks Consistent Dividend Payers [View article]
The underlying index is part of the S&P Dow Jones Indices.
http://bit.ly/10wjKud----
The index is weighted by indicated annual dividend yield; no stock represents more than 4%; each component has at least $2 billion in assets and a 3-month average daily volume of $5 million. Constituents also must be from the S&P Composite 1500, increased dividends every year over the last 20 years.
Major rebalances occur once a year in January to account for changes in the Dividend Aristocrat universe. Minor adjustments occur in April, July and October.
Stocks are weighted by yield, with a cap at 4%.
Currently, the fund is trading at a 0.03% discount to its NAV.
Year-to-date, the S&P High Yield Dividend Aristocrats is up 11.4%, S&P 1500 is up 9.4% and the S&P 500 is up 9.2%.
Hope this helps!
Tom
The Ins And Outs Of An Equal-Weighted ETF [View article]
SPY is structured like a unit investment trust. Consequently, it can not reinvest dividends or hold securities outside of the index, such as futures.
VOO is a 1940 Act Investment Company, so it can reinvest dividends, lend securities and hold futures.
RSP follows an equal weight methodology, so each stock holding makes up around 0.2% of the overall portfolio.
Best regards,
Tom