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Tom Lydon

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  • VIX ETFs To Hedge Market Volatility [View article]
    Hi gofx,

    Investors seeking to hedge against market volatility with VIX-related products tend to focus on the largest products, which are ETNS (i.e. VXZ, TVIX). However, most investors do not know that ETNs are not ETFs - some often group them all as "fund" products - and should not be used interchangeably. This article was intended to let hedgers know that there are VIX-related ETFs available.

    Best regards,
    Jun 1 12:51 PM | Likes Like |Link to Comment
  • VIX ETFs To Hedge Market Volatility [View article]
    Hi colion,

    VXX and VXZ are exchange traded notes, and this story is centered around VIX-related ETFs.

    For more information on ETNs, you can take a look at:
    May 30 01:39 PM | Likes Like |Link to Comment
  • ETFs And Retirement: You're Not Saving Enough [View article]
    Thanks for the update, and good luck!
    May 22 03:22 PM | Likes Like |Link to Comment
  • ETFs And Retirement: You're Not Saving Enough [View article]
    If you have not already, you can take a look at other articles we've written on ETFs in 401(k)s and retirement planning: and

    Stories that may be pertinent include:

    Some examples of ETF 401(k) plan providers include ShareBuilder 401k, Schwab, TD Ameritrade, Invest'n'Retire and ExpertPlan.

    Hope this helps!
    May 22 12:35 PM | Likes Like |Link to Comment
  • ETFs Breaking Into 401(K), 529 Savings Plans [View article]
    A 403b plan is similar to a 401k plan. So it is up to the 401k plan provider to include ETFs as options or not. It is up to the employees to let the employer and plan provider know they want ETF options. Perhaps, if enough people ask, they will provide them.
    May 16 02:06 PM | Likes Like |Link to Comment
  • Best ETFs For Water [View article]
    For more detailed information on component weightings, you can visit the providers' pages on the respective funds:

    PHO -
    FIW -
    CGW -
    PIO -
    May 14 02:56 PM | 1 Like Like |Link to Comment
  • Van Eck Lists High-Yield Emerging Market ETF [View article]
    Hi joske,

    HYEM is mostly concentrated in Ba 37.7% & B 28.0% or BB 43.2% & B 26.2% rated bonds. Avg yield to maturity is 8.95%, avg year to maturity is 21.19 yrs and avg coupon 8.13. Top industry weightings include basic industry 21.1%, energy 10.9%, real estate 10% and financial 18.3%. Top country allocations include China 13.2%, Russia 10.9% and Indonesia 7.9%.

    EMHY mostly holds BB/Ba2 29.8%/22.1% rated bonds. Avg yield to maturity 7.26%, effective duration 5.94 yrs and avg coupon 7.76%. Top sectors include public 64.1%, industrial 26.8% and financial 2%. Top countries include Venezuela 14.9%, Turkey 14.6% and Philippines 11.8%.

    The two funds may even compliment each other as both hold varying sector and country weights. It should be noted that neither fund has been on the market long enough to provide an updated current yield payout.
    May 14 01:40 PM | Likes Like |Link to Comment
  • ETF Spotlight: High-Yield Corporate Bonds [View article]

    HYG holds domestically issued high-yield bonds. High-yield bonds trade like any risky investment or security, which will fluctuate during times of high market volatility.

    Investors deciding between JNK and HYG may take into consideration the holdings, credit rating exposure, coupon rate, average maturity, sector allocations and expense ratio to determine if the ETF fits with your investment portfolio and time horizon. We've done an ETF spotlight on JNK before:
    Apr 30 01:03 PM | Likes Like |Link to Comment
  • Dividend ETFs: How To Select A Winner [View article]

    If you bought these two funds in 2005 or 2006 when they first started trading, your dividend payouts would have risen with the exception of the year following the financial crisis. These two funds regularly rebalance to include individual stock holdings that exhibit high yield characteristics. As such, if the over stock market is producing higher dividend yields, then these two funds should reflect that increase in dividends, as well. ETF providers include distribution or ETF performance pages for each of their ETF offerings. If you would like a more detailed or longer dated history, you can always email the providers for more information. Additionally, Yahoo! Finance includes a "dividends only" option when looking at an ETF's historical prices.
    Apr 27 01:35 PM | Likes Like |Link to Comment
  • Dividend ETFs In Focus As Companies Raise Payouts [View article]
    In the equities market, REITs, preferred stock and international stock ETFs offer high dividend yields. However, it should be noted that preferred stocks and international stock ETFs that do offer high yields will be heavily weighted toward the financials sector, which limits a portfolio's diversification prospects. If you would like to search for more specific ETFs, try using our ETF analyzer:
    Apr 10 12:35 PM | Likes Like |Link to Comment
  • One Month After Launch, PIMCO Total Return ETF Lives Up To The Hype [View article]

    On the PIMCO's BOND page, as of April 3, the provider shows a SEC 30-day yield of 2.57% and an estimated yield of maturity of 4.47% - BOND has an effective maturity of 6.67 years and an effective duration of 4.71 years. As of March 31, the distribution yield was 1.44%.
    Apr 4 04:32 PM | 2 Likes Like |Link to Comment
  • The Bullish Case For Gold ETFs [View article]
    The bullish case for gold remains a long-term view. As a result of the loose monetary policies, expected inflation will rise in many economies. Investment demand has increased year-over-year and demand for the physical metals are up - the growing middle class in the emerging markets, particularly China and India, will remain strong drivers of physical gold demand. Additionally, central banks are using gold as another form of hard currency, diversifying away from foreign currencies.
    Apr 2 01:19 PM | Likes Like |Link to Comment
  • New Agriculture ETF Takes Root [View article]
    TAGS's underlying holdings/funds - CORN, SOYB, CANE, WEAT - were each designed to mitigate the effects of backwardation or cotango on their performances. Instead of fully allocating their whole portfolio into the next month's contracts, each of the four underlying funds spread out their futures contracts allocations. For instance, they take on a 35% weighting in second-to-expire futures, 30% weighting in third-to-expire futures and a 35% weighting in the futures contract expiring in another month following the third-to-expire contract.
    Apr 2 01:17 PM | Likes Like |Link to Comment
  • Diving Into Water ETFs [View article]
    ETF critics have been contending that niche/specialized ETFs are "gimmicky," or were only created to collect money from investors and not necessarily created to generate returns for investors. However, the long-term performance seems to indicate otherwise. For instance, PHO is up 15.6% over the past three years. Water scarcity is a real issue, and companies are still developing new methods to efficiently supply the world with H2O.
    Mar 29 01:38 PM | Likes Like |Link to Comment
  • Axel Merk Plans Hard Currency ETF [View article]
    It still remains unclear what the ETF yield will be. When the ETF product launches, it typically takes a month before providers disclose yields.

    The Merk Hard Currency Fund (MERKX) currently has a 1.58% yield.
    Mar 29 01:37 PM | Likes Like |Link to Comment