It is often the more complex exchange traded products — those funds that might be better suited for institutions or trading professionals than buy-and-hold investors — that grab the attention of the media. But Noel Archard explains why sometimes it’s good to take a step back and how looking at the 100 largest US ETPs can help to keep things in perspective.
In an earlier post, Noel explained how minimum volatility ETFs are like four-wheel drive vehicles – they might not be the flashiest cars, but over the long haul they have the potential to get you where you need to go in all kinds of weather. Now he’s going Under the Hood to explain why it’s important for investors to understand the methodology a minimum volatility ETF uses to determine which stocks to hold.
Investors sometimes tell us that seeing trading volume is important to feel comfortable buying a newly launched ETF. But Noel shares a recent example of liquidity in one of iShares newest funds that affirms that what investors see in the secondary markets isn’t the full story.
What do minimum volatility ETFs have in common with four-wheel drive vehicles? Noel Archard explains how these funds can be thought of as a versatile vehicle that’s designed to help manage both calm and chaotic conditions.
It might be amusing to think that ETFs are developed by a group of product junkies who are locked in a room, dreaming of new ways to slice and dice the market. But Noel Archard is here to explain what drives iShares to create new funds and why we have introduced 35 new ones so far this year.
How can four ETFs with the word “dividend” in the name have so few holdings in common? The answer lies in the different indexes these funds seek to track.
Since we released our ETP classification and labeling proposal last October, there have been several attempts to pick holes in our concept. But what both supporters and detractors of our system seem to agree on is that there is the need for more — and better — disclosure to help investors understand what they are buying.
In 2011, 306 new exchange traded products launched and a slowdown is not expected this year. Noel explains how new ETPs are allowing investors to implement tactical investment decisions in response to changing market conditions. But he also reminds investors that just because a product exists, does not mean it belongs in your portfolio.
2011 was an exciting year for the ETF industry, but it was also marked by a great deal of confusion and misinformation. With ETFs taking the blame for everything from increased market volatility to rising correlations, Noel Archard explains why he welcomed the increased attention lawmakers gave to ETFs, and why he hopes the industry will continue to move toward improved disclosure and transparency in 2012.
With government bond yields at historic lows and interest rates also expected to remain low for quite some time, dividend ETFs are garnering a fresh look from investors. Here’s a closer look at two iShares dividend ETFs: HDV and DVY.
