Active investors who keep up with financial news undoubtedly noted the recent announcement of a new milestone in the ETF world: this past July, the 600th ETF was delisted prior to market opening on July 18. Judging just how important that number is and what it means to investors who have already embraced considering ETFs, this may require further explanation and some industry context.
The presidential election dominates American headlines every four years, with a bombardment of political articles running throughout campaign season up to the November vote. Financial publications and broadcasts also ride the waves of fear and optimism, as analysts break down the implications of each potential administration.
A look back at the ETF trading markets from last week…
Last week domestic equities continued to watch the Fed for any indication on the timing of the next rate hike. Fed Governor Lael Brainard was the last to speak before the Federal Open Market Committee pre-meeting quiet period took effect, hinting that there was a higher likelihood of a rate hike in December than this month. (CNBC, 12Sep2016) International Equity markets remained under pressure as selling carried over from the previous week as well as uncertainty as to whether or not the Bank of Japan will move rates into negative territory instead of expanding stimulus. Further weighing on international sentiment was Deutsche Bank receiving a $14 billion fine from the US Department of Justice to settle claims over its issuance of residential mortgage-backed securities in the lead-up to the 2008 financial crisis.
Topics: ETF Trading
At the turn of the century, investing guided by principles related to environmental, social and corporate governance (ESG) issues was almost completely separate from investing aimed at obtaining maximum long-term capital growth or minimizing risk exposure. ESG investors either hoped their investments would advance corporations that then promoted ESG principles or excluded them from their portfolio entirely. Investment gain or loss considerations for these investors, was usually a secondary concern. If anything, the belief among mainstream investment analysts was that including ESG factors in consideration of investments would weaken an investment portfolio.
A look back at the ETF trading markets from last week helping you better understand the ETF market and how ETFs trade on the exchanges brought to you by the FlexShares Capital Markets Group.
Written by Edward Rosenberg, Head of ETF Capital Markets and Analytics, and Marko Lazic, Capital Markets Analyst.
Topics: ETF Trading
FlexShares, a leading developer of ETFs, has introduced two new ETFs for investors who seek investments that integrate key performance indicators (KPIs) of environmental, social and corporate governance (ESG) principles into strategies designed to produce long-term capital growth.
The smart beta is actually an umbrella term for investment strategies that utilize alternative methods to construct indexes as opposed to traditional market capitalization weighting. Smart beta emphasizes various investment factors or characteristics in a rules-based and transparent way. Such strategies are often called multifactor investing.
ETFs offer investors compelling reasons to use them to build an entire portfolio, or “fill in the blanks” of a developed portfolio for those who want to further diversify. But how to choose the fund or funds that are a perfect fit — either within your current investment plan or with each other? With more than 1,600 funds to choose from, plus hundreds of indexing approaches, it can be a daunting task. Here are some guidelines for investors who are interested in a long-term strategy.
It’s no surprise that commercial real estate was one of the major casualties of the recent economic recession. But, then, neither is their comeback in a recovery that has offered low interest rates and depressed real estate prices. In fact, real estate is so widely acknowledged as a distinct and important asset type that it will receive its own sector classification this year, separating it from the financial services sector. And equity REIT ETFs that offer baskets of various-sized REITs may present a liquid and low-cost way to invest in this newest 11th asset sector.
It’s true that ETFs and mutual funds are often called “sister” investments because of their similarities. But investments in ETFs have been growing at an accelerated pace while mutual funds are just recovering from major outflows during the peak years of the recent financial crisis. We believe that certain key differences make ETFs the preferred choice for many investors today. Here are seven reasons why.
Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
An investment in FlexShares is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes. The Funds are subject to the following principal risks: asset class; commodity; concentration; counterparty; currency; derivatives; dividend; emerging markets; equity securities; fluctuation of yield; foreign securities; geographic; income; industry concentration; inflation-protected securities; interest rate / maturity risk; issuer; management; market; market trading; mid cap stock; natural resources; new funds; non-diversification; passive investment; privatization; small cap stock; tracking error; value investing; and volatility risk. A full description of risks is in the prospectus.