Why Now May Be The Right Time For Emerging Market Bonds | Etf Trends

Markets Desk | Ron Rowland | May 14, 2014 6:01 pm The number of ETFs and ETNs listed for trading in US markets continues to march toward the 1,600 level. In April, ten ETFs and one ETN were introduced, while one ETN closed and liquidated. The net increase of ten for the month puts the count at 1,578 exchange traded products (ETPs), consisting of 1,375 ETFs and 203 ETNs. All of the growth in product count is coming from the ETF side of the business. As seen in the chart below, ETN growth has stagnated with the ETN count at the same level it was in December 2011. Over the same period, the quantity of ETFs increased by 209, or 17.9%. Currency-hedged funds seem to be the current fashion trend for new ETF launches since WisdomTree Japan Hedged Equity (DXJ) successfully attracted more than $10 billion in assets last year. Last month, WisdomTree rolled out a Japan currency-hedged sector series with the hopes the currency hedging characteristics can win over US investors that have tended to shy away from international sector suites . The only closure during April came about due to an early termination trigger on a leveraged ETF that never reset its leverage. If leverage is not reset, then a 51% index loss would result in a 102% loss for a 2x leveraged product. Since ETP values cant go below zero, and they cant ask shareholders to cough up more money, these products must be designed with self-destruct mechanisms. Barclays ETN+ Short B Leveraged S&P 500 Total Return ETN (BXDB) triggered such a mechanism in April when its intraday value dropped below $10. ETP assets grew 1.1% in April to $1.76 trillion. The number of products exceeding $1 billion increased by two to 227 and account for 88.4% of all ETP assets. Funds with more than $10 billion now number 38, and while they represent just 2.4% of the active listings, they account for the majority (53.7%) of assets. It takes the smallest 786 products to add up to 1% of industry assets. SPDR S&P 500 (NYSEARCA:SPY) is the largest ETF and accounts for 9.1% of industry assets all by itself. Starting at the other end of the asset size spectrum, it takes 1,300 smallest ETPs to encompass the same 9.1% market share as SPY. One ETF holds the same amount of assets as 82.4% of the product universe.
Source: http://www.wallstreetsectorselector.com/investment-articles/analyst-desk/2014/05/etf-stats-april-2014/

Among the largest underlying components of IWB, in trading today United Parcel Service Inc (Symbol: UPS) is down about 0.8%, Biogen Idec Inc (Symbol: BIIB) is up about 1.1%, and eBay Inc. (Symbol: EBAY) is higher by about 0.6%. The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB’s low point in its 52 week range is $86.84 per share, with $106.51 as the 52 week high point – that compares with a last trade of $106.01. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average . Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
Source: http://www.nasdaq.com/article/ishares-russell-1000-etf-experiences-big-inflow-cm353095

The Winklevoss Bitcoin Trust ETF: What You Need to Know (GLD)

It essentially measures a debtors ability to service and pay back its obligations. At a high level, bonds are divided into two major categories: investment grade and high yield. Investment grade is defined as ratings at or above BBB- for S&P or Baa3 from Moodys, and high yield is defined as ratings below those levels. Many of the fixed income ETFs in the market provide exposure to either investment grade or high yield debt. As we know from the risk-return tradeoff , the higher the level of credit risk an issue has the higher the yield will likely be.
Source: http://www.etftrends.com/2014/05/blackrock-why-now-may-be-the-right-time-for-emerging-market-bonds/

Bitcoin Bingo: What Ticker Will the Winklevii Pick for Their ETF? – Bloomberg

Better security than current exchanges The biggest advantage that a Bitcoin ETF would have over current options is security. Bitcoin exchanges like Mt. Gox and Flexcoincollapsed after hackers broke through their security protocols and emptied their vaults. Since Bitcoin exchanges operate independently and accounts are not guaranteed by any government body, Bitcoin investors in Mt. Gox and Flexcoin were fed to the wolves after the exchanges collapsed.
Source: http://www.fool.com/investing/general/2014/05/13/the-winklevoss-bitcoin-trust-etf-what-you-need-to.aspx

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iShares Russell 1000 ETF Experiences Big Inflow – NASDAQ.com

No objection to corny — corny ETF tickers can be great. There’s MOO for the Market Vectors Agribusiness ETF, ROOF for the IndexIQ U.S. But all these speak to the investment focus of the ETF, not the issuer. Even Bill Gross used BOND for the Pimco Total Return Bond ETF.
Source: http://www.bloomberg.com/news/2014-05-13/bitcoin-bingo-what-ticker-will-the-winklevii-pick-for-their-etf-.html


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