Showing posts with label etf. Show all posts
Showing posts with label etf. Show all posts
Wednesday, 3 June 2026
Vanguard S&P 500 ETF Tops $1tr in Asssts
The VOO (Vanguard S&P 500 ETF) has reached $1tr ahead of rival ETFs from State Street and iShares.
Thursday, 20 March 2014
Goldman's Launches India Public Sector ETF
GS (specifically GSAM) is launching a Public Sector Enterprise ETF which will feature 10 Indian public sector companies (March 2014), including ONGC, Gail, Coal India, Bharat Electronics, Engineers India (EIL) and Container Corp.
Some tickers to watch (tickers are NSE unless otherwise stated): BEL, CONCOR, GAIL.
Some tickers to watch (tickers are NSE unless otherwise stated): BEL, CONCOR, GAIL.
Saturday, 2 February 2013
The Art of Inverse Equity ETFs
Inverse ETFs allow investors to hedge long equity positions. It also facilitates some form of long/short equity trading.
Proshares (it seems) offers good liquidity in Inverse ETFs.
Here's a case study of SH, which was created in 2006. SH allows you to go 100% short the S&P 500. The expense fee is 0.89%. The NAV is calculated at 4pm ET.
How does Proshares the ETF work? As of 1 Feb 2013, it's partly achieved by being ~$64m short on the S&P 500 e-Mini March contract - a massively popular futures contract (trades 5 days a week on a March quarterly cycle). But as not all the liquidity can be executed on the exchange, a large percentage of the short position is achieved via Equity Index Swaps (e.g. they are short $380m against Goldman Sachs, $306m short against Deutsche Bank).
This is an interesting concept: selling protection (insurance) via an ETF by massively shorting the futures market.
Proshares (it seems) offers good liquidity in Inverse ETFs.
Here's a case study of SH, which was created in 2006. SH allows you to go 100% short the S&P 500. The expense fee is 0.89%. The NAV is calculated at 4pm ET.
How does Proshares the ETF work? As of 1 Feb 2013, it's partly achieved by being ~$64m short on the S&P 500 e-Mini March contract - a massively popular futures contract (trades 5 days a week on a March quarterly cycle). But as not all the liquidity can be executed on the exchange, a large percentage of the short position is achieved via Equity Index Swaps (e.g. they are short $380m against Goldman Sachs, $306m short against Deutsche Bank).
This is an interesting concept: selling protection (insurance) via an ETF by massively shorting the futures market.
The Global ETF Market & Focus: From Super-Cheap SCHX to Innovative EG Shares
Awesome Size of the Global ETF Market
The Global ETF Market, as reported by London's Financial Times newspaper, has invested in it a sum greater than 2 trillion dollars. It also states that nearly 70% of that figure is held by Blackrock's iShares (acquired from Barclays in 2009), State Street and Vanguard. In Europe, Lyxor, owned by Societe Generale, is also pretty big.
ETFGI is a company focused on ETF research, started by staff from Morgan Stanley, involved in investment research and strategies.
How does an investor compare ETFs?
Metrics for Comparison
One metric is the EXPENSE RATIO. One of the cheapest ETFs is the Charles Schwab US Large Cap ETF (SCHX) which has an expense ratio of 0.04%. It is non-leveraged and holds assets of $1bn (about 18% of holdings are in the IT sector).
Morningstar is a company that gives ratings to ETFs,based on performance, adjusted for cost, and adjusted for risk.
ETF "Categories"
They also assign special categories to ETFs, depending on the asset class. For example, a US stock ETF might be classified as "Large Growth", "Large Value" or "Large Blend" or sector-based e.g. "Real Estate", "Utilities", "Technology". In the area of Alternatives they have categories like "Managed Futures", "Volatility", "Equity Precious Metals" or "Inverse Equity".
What does the "Equity Precious Metals" category consist of?
These funds invest in equities connected with precious metals, such as gold mining companies.
ETF Exchanges
NYSE ARCA has a whole range of tradable ETFs, searchable by issuer. For example, iShares have 10 ETFs on ARCA.
Indian ETFs
EG Shares has developed Indian ETFs. Once such, is NYSE:INXX, an Indian Infrastructure ETF. It has an expense ratio of 85bps. The investment is done via equities, ADRs and GDRs. The companies purchased must have a market cap of at least $200m at time of purchase.
EG Shares also produce Brazil and China infrastructure ETFs. CEO Marten Hoekstra was formely the CEO of UBS Wealth Management Americas.
The Global ETF Market, as reported by London's Financial Times newspaper, has invested in it a sum greater than 2 trillion dollars. It also states that nearly 70% of that figure is held by Blackrock's iShares (acquired from Barclays in 2009), State Street and Vanguard. In Europe, Lyxor, owned by Societe Generale, is also pretty big.
ETFGI is a company focused on ETF research, started by staff from Morgan Stanley, involved in investment research and strategies.
How does an investor compare ETFs?
Metrics for Comparison
One metric is the EXPENSE RATIO. One of the cheapest ETFs is the Charles Schwab US Large Cap ETF (SCHX) which has an expense ratio of 0.04%. It is non-leveraged and holds assets of $1bn (about 18% of holdings are in the IT sector).
Morningstar is a company that gives ratings to ETFs,based on performance, adjusted for cost, and adjusted for risk.
ETF "Categories"
They also assign special categories to ETFs, depending on the asset class. For example, a US stock ETF might be classified as "Large Growth", "Large Value" or "Large Blend" or sector-based e.g. "Real Estate", "Utilities", "Technology". In the area of Alternatives they have categories like "Managed Futures", "Volatility", "Equity Precious Metals" or "Inverse Equity".
What does the "Equity Precious Metals" category consist of?
These funds invest in equities connected with precious metals, such as gold mining companies.
ETF Exchanges
NYSE ARCA has a whole range of tradable ETFs, searchable by issuer. For example, iShares have 10 ETFs on ARCA.
Indian ETFs
EG Shares has developed Indian ETFs. Once such, is NYSE:INXX, an Indian Infrastructure ETF. It has an expense ratio of 85bps. The investment is done via equities, ADRs and GDRs. The companies purchased must have a market cap of at least $200m at time of purchase.
EG Shares also produce Brazil and China infrastructure ETFs. CEO Marten Hoekstra was formely the CEO of UBS Wealth Management Americas.
Monday, 16 August 2010
Commodity ETF tracks Dynamic Total Return Commodity Index
United States Commodity Index Fund has been launch August 2010, tracking the SummerHaven Dynamic Commodity Index. 14 contracts are selected on a monthly basis from a possible 27. The index was created by two professors from Yale. It's an "algo" (rules-based). Powershares also have a commodity index fund. iShares also have an ETF tracking S&P GSCI index, allowing broad-based exposure to commodities.
There is concern that such products distort the market and encourage front-running. US Commodity Funds is already famous for USO and UNG. The strategy is to invest in futures that exhibit backwardation (an "anti-contago" strategy). It is reminiscent of the "size effect" in equities.
In other innovations, PowerShares has already released a product to track Ultra-T-bond futures on CBOT (where you can leverage up or down three times). It applies their "monthly leverage rebalancing methodology to fixed-income products".
There is concern that such products distort the market and encourage front-running. US Commodity Funds is already famous for USO and UNG. The strategy is to invest in futures that exhibit backwardation (an "anti-contago" strategy). It is reminiscent of the "size effect" in equities.
In other innovations, PowerShares has already released a product to track Ultra-T-bond futures on CBOT (where you can leverage up or down three times). It applies their "monthly leverage rebalancing methodology to fixed-income products".
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