Finance forum: ETF

ETFs, or “exchange traded funds”, are investment instruments known categorically as “passive asset management”. These are investment funds that precisely track the performance of an index, such as the Nasdaq 100 or the S&P 500, and also indices from industry markets such as raw materials or biotech. They offer many advantages including investment diversification, convenience (index replication is automatic) and relatively low management fees.

Bloomberg: World’s largest credit ETF loses $3.6 billion

Posted on 08.04.2021

According to a report released by Bloomberg, the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) experienced outflows to the tune of 3.6 billion dollars in the month of March. This is by far the worst-performing month for the world’s largest credit ETF since its inception about 20 years ago. The monthly performance was part of its biggest quarterly loss in 12 years.  Why the sell-off? The causes for the sell-off across the high-grade corporate bonds sector are two-pronged. ...

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Why your mutual fund could become an ETF

Posted on 07.04.2021

In the 1970s, index funds grew out of mutual funds. And in the1990s, ETFs emerged from the world of index funds. Today, we stand at a critical point where mutual funds could soon turn into ETFs: a sector that has seen considerable growth in the last year. What’s the difference between a mutual fund and an ETF? Investors pool money to buy assets contained in each of the funds. There are, however, some minor differences. For example, investors can only purchase a mutual fund at the end of ...

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Can active non-transparent ETFs compete?

Posted on 05.04.2021

Active non-transparent ETFs, also known as ANTs, were considered a hot asset when they first burst onto the scene just a year ago. But while Wall Street experienced a record bull run, ANTs struggled to keep pace and impress investors. All the ANTs combined have so far attracted about a billion dollars of inventors’ money. That amount, however, is a tiny fraction of the 676 billion dollars poured into all the ETFs in the US during the same period. To put things into perspective, B ...

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BlackRock slashes fees on 9 ETFs to near zero

Posted on 24.03.2021

BlackRock, the world’s largest issuer of ETFs, has markedly lowered fees on 9 of its broad style funds to attract more investors. BlackRock’s ETFs have long had the notorious reputation of being expensive compared to their peers. Now it seems the firm is actively trying to bury that notion and become a bit more democratic. Armando Senra, a managing director at Blackrock, said the firm is positioning itself to attract cost-conscious buyers by making its funds more attractive for the g ...

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Why ETFs have become the new go-to investment vehicle

Posted on 18.03.2021

The retail trading revolution, fueled by commission-free and fractional shares trading, is changing a lot of things in financial markets. One of those things is trading in ETFs, which are jumping on the retail frenzy and attracting market newcomers who have already poured huge amounts of cash into hot funds.  Why now? Generally speaking, launching an ETF has always required an early cash infusion and wider distribution. For large financial institutions, this was never a hurdle but for the ...

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Invesco launches two new ESG ETFs

Posted on 17.03.2021

Invesco has strengthened its ESG offering to meet the demand of investors looking for ESG alternatives for their core portfolio holdings. Thus, the birth of two new ETFs targeting stocks from the United Kingdom and developed Europe. Invesco’s Head of EMEA Exchange Traded Funds and Indexed Strategies, Gary Buxton, said: “Flows into ETFs with an ESG goal continue to outpace those without one. As demand continues to grow, investors need a greater variety of vulnerability to tailor ...

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5 ETFs that had the highest gains in February

Posted on 08.03.2021

While the investing world was busy with the recent retail trading frenzy and the imminent market correction, many ETFs continued to quietly perform well. Here is a list of the 5 ETFs that gained the most during February. Performance was measured on net flows to asset ratio on a monthly basis for ETFs with a minimum of 10 million dollars in net assets. WisdomTree Cybersecurity Fund (WCBR) The WisdomTree Cybersecurity fund tracks companies primarily related to the cybersecurity industry. It is a ...

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New ETF “BUZZ” Aims to Track the 75 Most-Positively Mentioned Companies on the Internet

Posted on 04.03.2021

The social media boom that hit the investing world in the last few months has resulted in another newsworthy event with the creation of a new ETF called BUZZ. The fund, which will be launched today, has already created a ‘buzz’ on social media with the usual trading forums welcoming the new ETF.  The ETF is being launched by VanEck Associates Corp. It will track the top 75 companies according to how often they are mentioned on the internet. BUZZ will track an index that scours ...

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BlackRock Has Warned of Possible Shortages in World’s Leading Silver ETF

Posted on 22.02.2021

BlackRock updated its prospectus last week amid the market trading frenzy caused by Reddit traders. The update noted that investors might not be able to acquire the desired amount of physical silver, which may result in the suspension of the SLV ETF. Reddit traders target silver In the first week of February, traders on the Reddit forum WallStreetBets decided to squeeze the silver market. Their target was the 17 billion dollars iShares Silver Trust ETF(SLV). Over a period of just two days ...

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