TVIX: Case Study ETNs & ETFs to be Wary…

Credit Suisse’s volatility-flavored ETN,  the VelocityShares Daily 2x VIX Short-Term ETN, aka “TVIX” is, for lack of a better phrase, broken.  And it ‘got broken’ in mid Feb when CS halted the creation process for this product. Observed Chris Hempstead, the head of ETF trading for WallachBeth Capital, “the halt in the creation process caused […] Read More

23 March, 2012

Markdown in MuniBond ETFs: Discount Pricing

ETF Trends’ Tom Lydon makes a poignant observation when pointing out that MUB , iShares S&P National Municipal Bond Fund ETF is continuing to trade at a discount to its NAV, which for some, is a disturbing bearish signal. While ETF “discount trading” is not necessarily unusual in and of itself, prolonged disparities (i.e. for […] Read More

20 March, 2012

Conflict-Of-Interest Charges Roil Bankers-What About Those “Step-Out” Ticket Charges?

Fast on the heels of that New York Times op-ed by a former GoldmanSachs derivatives trader, who in a public farewell tribute to the employer he had just “fired” (claiming said employer caused both the culture and very corpuscles of the firm’s ecosystem to become polluted with the toxic virus “Conflicts-of-Interest Syndrome”),  another, and potentially […] Read More

19 March, 2012

High Yield Junk Bond ETFs-Eye On Distortions

It appears that our comments re:  junk bond ETFs over the past 6 weeks has inspired main stream media, and in particular, WSJ’s Jason Zweig, to zero in on a talking point raised here last month: the logistics by which certain ETFs are ‘created’ and redeemed, and the potential distortion in prices between the underlying […] Read More

19 March, 2012

Glass Half Full of Apple (AAPL) Juice : ETF…

We took the liberty of scraping an interesting note from this a.m.’s  Notes from the WallachBeth ETF Desk : “…On to Apple: Today will sure set a new tone and a new era for Apple lovers and haters; the iPad 3 (aka iPad) has been released, praised and torn down. The company is announcing a […] Read More

19 March, 2012

Institutions Eye Options: Buy-Writes and Butterflies

Yes, the equities markets are on a roll; the bulls are boisterous, and the “buy and holders” are popping champagne corks. Given this scenario, who would even suggest the idea of a fiduciary fund manager employing option-based hedging strategies that can potentially cut into upside returns?? After all, even though major exchanges throughout the globe […] Read More

16 March, 2012

ETFs with Largest Exposure to AAPL: Should You Hedge?

Now that we’ve all forgotten the name of that former derivatives trader from Goldman who enjoyed his 15 minutes of “de-fame”, we can now all re-focus on the brand that’s causing people to line up once again for their latest product offering: Apple Inc. According to ETF Research Center, 91 ETFs have AAPL in their […] Read More

16 March, 2012

How To Hedge Market Top With ETFs.

Following is courtesy of ETF Database market analyst Stoyan Bojinov: Are we near the top or did the bull train just leave the station? Fundamental news has been bolstering equity markets higher since the start of 2012, although many investors are fearful that if they jump in now, the next market correction may very well […] Read More

15 March, 2012

Move Over Ashton Kutcher: ex-Goldman’s Greg Smith Now Most…

If you haven’t read, or at least heard about the brouhaha surrounding GoldmanSachs’ former head of equity derivatives Greg Smith and his farewell-to-the-firm soliloquy in today’s New York Times, you might be on an advance scouting mission to Mars on behalf of Newt Gingrich. Aside from this story occupying Wall Street, and the hearts and […] Read More

14 March, 2012

Top RIA’s 20 Top Twitter Feeds for Financial Advisers

Social Media + Financial Services is (so far) an oxymoron. After all, the odds are 10:1 that you’re compliance officer will call you a moron if you solicit approval to become socially-engaged in any digital venue. All of that said, the tide always turns, until of course, it comes back to you hit in the […] Read More

13 March, 2012

Lyxor Launches New Commodities ETFs

Lyxor has launched a new range of ETFs offering investors four different strategies aimed at providing diversified exposure to commodities. The new ETFs are listed on the London Stock Exchange. Two of the new ETFs track indices of the issuer’s parent bank Societe Generale, the Optimix Total Return and Momentum Total Return indices. The former […] Read More

13 March, 2012

MSCI, S&P, FTSE Create Index Industry Trade Group

MSCI, S&P Indices and FTSE have created a global trade body for the index industry, called the Index Industry Association (IIA). The IIA will form an official, representative body, with a remit that includes educating investors on the attributes and role of indices within the investment process and advocating the interests of index users and […] Read More

13 March, 2012

Indexing Beats Hedge Fund Investing

A brief, but intriguing blog post over at SeekingAlpha–written a a self-proclaimed gear-head backed by compelling research suggests that returns using straight-forward indexing has trumped fast-money hedge fund investing for each of the past five years. As illustrated by the table below (the full article can be accessed by clicking the image), blogger/private investor Jeff […] Read More

13 March, 2012

Traders & Brokers Best Bets For MarchMadness: Destinations

Until your favorite broker has scored you Final Four tix in the Big Easy, you’ll either be in your own easy (chair), or stepping out your trade to a local venue to take in NCAA’s March Madness tourney.  For those of you in Manhattan’s Melting Pot, these are best bets. You’ll have to keep reading […] Read More

12 March, 2012

ETFs for #MarchMadness

Someone with the handle “ETF Professor” is said to have studiously researched specific ETFs (and a few single stocks) that might bounce higher thanks to the billions that will be spent promoting, viewing, betting, and let’s not forget dining and imbibing, in the course of this week’s NCAA March Madness. At the risk of diluting […] Read More

12 March, 2012

Fidelity Snags State Street ETF Czar: Rumors Abound

In a “if you can’t beat ’em, poach ’em” moment, mutual fund monster Fidelity Investments has apparently thrown in the towel and will finally focus on running their own actively-managed sector-specific ETFs. At least that’s the obvious conclusion being drawn by industry watchers after news of Fidelity, which still only offers one house-branded ETF, announced […] Read More

9 March, 2012

WisdomTree Gets Wise With Corporate Bond ETF

WisdomTree, the publicly traded New York-based ETF sponsor, today rolled out the market’s first broad-based emerging market corporate bond ETF, beating iShares and State Street Global Advisors to the punch. The WisdomTree Emerging Markets Corporate Bond Fund (NasdaqGM: EMCB) is an actively managed portfolio consisting of dollar-denominated investment-grade corporate bonds from issuers in Asia, Latin […] Read More

9 March, 2012

Fixed Income ETF Fans Tune In Here

It’s a big bowl of alphabet soup when it comes to quenching your appetite for fixed income ETFs. On today’s menu you’ll find that a small smorgasborg of just these alone will get you through the first of several courses: EUO, UUP, ELD, XLU, IDU. There’s not enough room right here to go into further […] Read More

9 March, 2012