Archive for August 2012

Investors buy gold ETFs in anticipation of QE3

Aug 29th, 2012 | By
VanEck’s junior gold miners ETF to broaden index coverage

The price of gold reached $1,674 per ounce last week – a four-month high, and a 4% gain for the week – as a result of speculation concerning a third round of quantitative easing in the US and further accommodative monetary policy in Europe. With central banks on both sides of the Atlantic seemingly preparing to fire up the printing presses, investors have been turning to physically-backed gold exchange-traded funds (ETFs), such as SSgA’s $69 billion SPDR Gold Shares ETF (GLD), to preserve their wealth.



Emerging markets healthcare ETFs to benefit from growing wealth and government spending

Aug 29th, 2012 | By
Health care ETFs rise as Trump fails to repeal Obamacare

Amid growing wealth and increased government spending, pharmaceuticals, medical technology and health infrastructure have been highlighted as attractive investments in emerging markets. For investors seeking broad exposure to emerging markets healthcare, a number of exchange-traded funds (ETFs) fit the bill. Moreover, many of these funds, such as the db x-trackers MSCI Emerging Markets Healthcare TRN Index ETF (XMEH) and the EGShares Health Care GEMS ETF (HGEM), have been strong performers this year, demonstrating the potential of the sector.



US house prices continue to rise; positive for homebuilder ETFs

Aug 29th, 2012 | By
Equal weight approach more popular than ever, ten years after S&P 500 EWI and ETF debut

The S&P/Case-Shiller Home Price Index showed that US home prices gained in the second quarter, and for the fifth straight month. David M. Blitzer, Chairman of the S&P Dow Jones Index Committee, said: “We seem to be witnessing exactly what we needed for a sustained recovery: monthly increases coupled with improving annual rates of change.” This represents yet more good news for US homebuilder ETFs, which have already enjoyed outstanding performance so far this year.



Growth and income ETFs drive AUM higher at Canada’s BMO Financial Group

Aug 29th, 2012 | By
Growth and income ETFs drive AUM higher at Canada's BMO Financial Group

Canada’s BMO Financial Group has announced that its exchange-traded fund (ETF) business has surpassed C$7 billion in assets under management (AUM) and has grown by C$1 billion (16 percent) in the last two months alone. “Our recent success has been driven by flows into ETFs which combine growth with attractive income,” said Kevin Gopaul, Chief Investment Officer and Senior Vice President, BMO Asset Management.



Financial advisers show increased interest in passive investments

Aug 28th, 2012 | By
Financial advisers show increased interest in passive investments

Research from Legal & General Investments, one of the UK’s largest investment providers, has shown that financial advisers are viewing passive investments far more favourably compared to 2011. When asked into which asset classes they would be investing over the next 12 months, nearly two in five IFAs (38%) indicated they would be buying passive funds, an increase of 7% on 2011, when only three in 10 had passive investments in their sights.



US homebuilder ETFs boom as house prices and sales rebound

Aug 27th, 2012 | By
US homebuilder ETFs boom as house prices and sales rebound

Exchange-traded funds (ETFs) with exposure to the US homebuilding industry have been boomed this year, as US house prices and home sales have rebounded. Leading the pack has been the highly targeted iShares Dow Jones US Home Construction Index ETF (ITB), which has rallied over 51% year to date. Meanwhile the SPDR S&P Homebuilders ETF (XHB), the largest homebuilder ETF by assets, has gained 37%. Recent data suggest the strong performance of ETFs such as these will continue.



STOXX expands index line-up

Aug 27th, 2012 | By
Stoxx launches emerging markets exposure index for Europe

STOXX, a leading European index provider, has expanded its product offering with the roll-out of 19 broad, size and blue-chip indices covering Emerging and Developed Markets, East Asia, and Africa. “With the expansion of our STOXX Emerging and Developed Markets Index offering, as well as the launch of new regional indices, we are broadening the coverage of the world’s markets with innovative and rules-based STOXX indices,” said Hartmut Graf, chief executive officer, STOXX.



PowerShares Canada launches actively managed tactical bond ETF (PTB)

Aug 26th, 2012 | By
WisdomTree Canada unveils three new dividend ETFs

PowerShares Canada has announced the launch of the PowerShares Tactical Bond ETF (PTB), an actively managed fixed income ETF that seeks to provide both income and capital growth. Strategically diversified across fixed income asset classes, the fund will invest primarily in a mix of Canadian government, investment-grade corporate and real return bonds, and US high-yield bonds.



High income Global X SuperDividend ETF (SDIV) reaches $100m in assets

Aug 26th, 2012 | By
High income Global X SuperDividend ETF (SDIV) reaches $100m in assets

The Global X SuperDividend ETF (SDIV), an NYSE-listed high income ETF offered by New York-based Global X Funds, has reached $100 million in assets in little over a year since the fund made its debut. Commenting on the milestone, Bruno del Ama, CEO of Global X Funds, said: “The Global X SuperDividend ETF, with over $100 million in assets and a 30-day average daily volume of over 100,000 shares, has been one of the fastest growing products by inflows over the last year.”



BlackRock Canada launches CAD-hedged iShares US High Dividend Equity Index ETF (XHD)

Aug 26th, 2012 | By
BlackRock Canada launches CAD-hedged iShares US High Dividend Equity Index ETF (XHD)

BlackRock Canada has announced the launch of the CAD-hedged iShares US High Dividend Equity Index Fund (XHD). The TSX-listed exchange-traded fund (ETF) seeks to deliver long-term capital growth by tracking the Morningstar Dividend Yield Focus Index. The index provides access to first-class, dividend-paying US companies that have been screened for superior company quality and financial health, with the added benefit of liquidity.