On our most recent radio broadcast, Ari Weinberg, contributor to The Wall Street Journal, joined us to discuss his recent article "Firms Try Varied Designs to Add ETFs". As investors continue to gravitate towards ETFs, traditional mutual fund companies are seeing the writing on the wall and searching for the best way to launch new ETF products. Ari offered some thoughts on what's driving mutual fund companies to enter the ETF space and explained the three primary options that these firms are considering to launch ETF versions of existing mutual funds or new funds altogether. Ari also chatted about an interesting article that we discussed last fall, "What ETFs Next Act Will Look Like", where he examined what investors might expect to see from ETFs over the next five years.
In our weekly market update, we spent a few moments digging into last year's performance from mutual funds, ETFs, and even hedge funds. While we've talked about the underperformance of mutual funds on past shows, the data from 2012 - particularly from hedge funds - continued to highlight the challenges active managers face in trying to outperform the market. Lastly, in our ETF spotlight segment, we highlighted a country specific ETF (WisdomTree Japan Hedged Equity ETF - ticker DXJ) that not only hedges its currency exposure, but also has a unique way of weighting the individual stocks that it holds.