Tag Archives: exchange-traded-products

ETF News

Social Media Popularity Doesn’t Show In Social Media ETF

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MarketsMuse blog update profiles the social media ETF, The Global X Social Media Index ETF (SOCL). So far this year, SOCL has not been performing very well, which is in contrast to social media performance in everyday life. Social media sites are gaining more users everyday however the trend doesn’t show in SOCL’s performance. Investopedia’s article “Is Social Media ETF SOCL Too Risky?” by Dan Moskowitz investigates the reason this trend occurs. Extracts from the article are below. 

The world is atwitter social media and its rapid growth right now. According to the Pew Research Center, 74% of online adults use a social networking site of some kind, up from 29% in 2008. And more advertising opportunities are blooming alongside the increased usage of mobile devices. In March, for the first time ever, the number of mobile-only internet users exceeded the number of desktop-only internet users, according to research firm comScore.

One of the trendiest ways to invest in social media is via the Global X Social Media Index ETF (SOCL), which tracks the largest publicly held social media firms around the world, including Facebook Inc. (FB), LinkedIn Corp. (LNKD) and Twitter Inc. (TWTR). With the sector’s global growth expected to continue for the long haul, betting on SOCL seems like a no-brainer.

What’s tricky with SOCL is that the trend doesn’t always match the performance. 

For starters, SOCL returned -15.04% in 2014. Take a look at SOCL’s top ten holdings, their percentage of assets, and their one-year stock performances 

The heavier-weighted holdings are performing well, but the 0.65% expense ratio for SOCL comes into play. Also notice that some of the weaker-performing stocks belong to Wall Street darlings — buzzy startups investors loved during their IPOs — that have had difficulty delivering consistent profits: Pandora, Groupon and Twitter, if you’re looking for a big industry name that’s falls farther down in SOCL’s holdings. If these companies are unable to deliver stock appreciation when markets are at all-time highs, then you shouldn’t expect them to perform well when the market takes a turn for the worse.

More people are accessing social media sites every day, a very positive trend. But without positive returns, that trend is irrelevant. Some of the companies/holdings for SOCL have difficulty delivering consistent profits and haven’t yet shown investors a clear-cut path to how they’ll do it down the road. If that’s the case when the stock market is at all-time highs, then it’s highly unlikely for these stocks to appreciate if and when the market falters. Put simply, unless you’re looking for a short-term trade, consider avoiding SOCL. But if the broader market continues to move higher thanks to Federal Reserve assistance and basic momentum, there’s a possibility it will take SOCL with it. As always, do your own research prior to making any investment decisions.

To read the entire article profiling the ETF SOCL, click here.

 

 

ETF News, Tech Talk

BNY Mellon Introduces New ETF Tool

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MarketsMuse blog update profiles The Bank of New York Mellon Corporation aka BNY Mellon, and their introducing a new ETF negotiation tool. This update is courtesy of Asset Servicing Times’ article, “BNY Mellon launches new ETF negotiation tool“,  with an excerpt below. 

BNY Mellon has introduced a new automated process to aid authorised participants in the creation and redemption of exchange traded funds (ETFs).

The new process allows these participants to use BNY Mellon’s ETF centre to conduct propositions and negotiations on underlying data for ETF baskets with a fund sponsor.

It is designed for large financial institutions that are chosen by such a sponsor to obtain the necessary assets for creating or redeeming an ETF.

Usually, participants will have to go through more than one institution to do this, before shares are transferred to a custodian bank.

The new system is designed to offer a more flexible and more efficient environment for negotiating ETF baskets.

Steve Cook, global head of ETF services at BNY Mellon, said: “Helping authorised participants become more efficient ultimately benefits the other participants in the ETF marketplace, ranging from issuers to those in the secondary trading market.”

To continue reading about this new ETF negotiation tool, click here.

ETF News, People Profiles

Goldman Sachs Readies ETF Launch

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MarketsMuse blog update profiles Goldman Sachs preparing for a launch of its own ETFs. Goldman Sachs is the largest U.S. investment bank and they are finally going to make the move to become a huge player in the ETF industry.  The firm has completed all its necessary paperwork with the SEC as of May 4th for its six ETFs. These six new ETFs include: Goldman Sachs ActiveBeta International Equity ETF (GSIE), Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM), Goldman Sachs ActiveBeta Europe Equity ETF (GSEU), Goldman Sachs ActiveBeta Japan Equity ETF (GSJY), Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) and the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC). This MarketsMuse blog update is courtesy of ETFTrends’ Tom Lydon and his article, “Goldman ETFs Near Liftoff“, with an excerpt below. 

ETFTrends-logo

Goldman Sachs (NYSE: GS), the largest U.S. investment bank, is getting closer to launching its own exchange traded funds.

In a filing with the Securities and Exchange Commission dated May 4, New York-based Goldman Sachs revealed tickers and fund managers for its six “ActiveBeta” ETFs as well as tickers for its five passively managed ETFs.

Among Goldman the managers for the ActiveBeta ETFs are “Steve Jeneste, a managing director most recently oversaw portfolio management of macro and multi-asset strategies. Another is Raj Garigipati, vice president, who most recently served as chief risk officer for Goldman’s QIS unit,” reports Chris Dieterich for Barron’s.

To continue reading about Goldman Sachs preparing  for the launch of its six “ActiveBeta” ETFs, click here.

 

ETF News

Rookie ETFs Of The Year: Two New ETFs That Are Standouts In 2015

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MarketsMuse blog update profiles two ETFs that have become standouts so far this year. The ETFs iShares Exponential Tech ETF (XT) and SPDR DoubleLine Total Return Tactical ETF (TOTL) have been dubbed with the title according to Zacks’ Neena Mishra in her article, “2 New ETFs with Big Potential“, excerpts from the article are below. 

The ETF industry continues to grow exponentially, with a record $96 billion in global inflows during the first quarter, up more than 100% from a year ago. More than 70 ETFs have been launched in the US so far this year, taking the total number of ETFs to 1702 and total assets to over $2.1 trillion.

Below, we highlight two ETFs launched this year that stand out from the rest and in our view hold a lot of potential.

iShares Exponential Tech ETF (XT)

This ETF has attracted almost $647 million in assets since its inception in March, making it one of the most successful ETF launches. Investing in innovative technologies that have the potential to transform our lives is a very exciting concept. Further, this ETF includes not only developers but also users of promising technologies. So the coverage extends beyond the technology sector.

The idea for this ETF came from the famous financial advisor Ric Edelman and it is understood that some of the assets in this ETF came from his clients. Investors should note some of these disruptive technologies stocks have been quite hot lately and so this ETF is not really attractive looking at the valuation but companies focused on cutting edge technologies definitely have the potential to deliver superior return over time and this ETF could be a solid choice for long-term investing.

SPDR DoubleLine Total Return Tactical ETF (TOTL)

Bond markets have confounded most analysts and investors of late. Yields plunged last year when almost everybody was expecting them to go up. Over the past few months, the bond market has seen erratic swings and we have also seen substantial flattening of the yield curve.

As the Fed gets ready to raise interest rates, shorter-term rates have been going up but longer-term rates have actually declined, thanks mainly to massive demand from foreign investors since interest rates in Europe and Japan are so low.

To continue reading about these two standout new ETFs, click here

ETF News

Homebuilding ETF Is Falling Down

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MarketsMuse blog update profiles speculation surrounding SPDR S&P Homebuilders exchange-traded fund. This ETF reach an eight-year high in February but since then has fallen dramatically. Now investors are taking notice and are trying to make a quick exit. This MarketsMuse blog update is courtesy of Callie Bost and Jennifer Kaplan of Bloomberg Business and their article, “Investors In This Homebuilder ETF Are Heading for the Exits“, with an excerpt below. 

Investors in homebuilding shares are heading for the door.

Speculators in the SPDR S&P Homebuilders exchange-traded fund have pulled a record amount of cash in April, abandoning the ETF known by its ticker XHB after it reached an eight-year high in February. The fund has retreated 4.8 percent since then.

Traders are doubting equity gains have room for improvement as mixed economic reports muddy the outlook for further growth in the industry. The Federal Reserve is moving closer to raising interest rates, adding to concerns just as homebuilders enter the busiest time of the year.

“Housing stocks are in an interesting position right now,” James Gaul, a portfolio manager at Boston Advisors LLC, which oversees $3 billion, said by phone. “We’re in a bit of a logjam for multiple factors. Until this logjam breaks, it’s going to be hard for national homebuilders to have sustained outperformance.”

In April, traders removed $376 million from the fund, the largest monthly outflow since the ETF started trading in 2006. The SPDR S&P Homebuilders fund tracks stocks like Toll Brothers Inc. and D.R. Horton Inc. as well as home-improvement companies including Aaron’s Inc., Tempur Sealy International Inc., and A.O. Smith Corp.

To continue reading about the fall of the homebuilder ETF, SPDR S&P Homebuilders exchange-traded fund, click here

ETF News

ETFs Hit New Milestone As Individuals Put More Into ETFs Than Mutual Funds

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MarketsMuse blog update profiles the new milestone exchange-traded funds have reached as now more than ever, individual investors have pouring more money into ETFs than traditional mutual funds. This MarketsMuse blog update is courtesy of an analysis done by Broadridge Financial Solutions and found in the Wall Street Journal’s article, “A New Milestone for ETF Adoption“, with an excerpt below.

Individual investors have a lot more money invested in traditional mutual funds than in exchange-traded funds. But as people continue pumping dollars into ETFs, their ETF holdings grew by more in dollar terms than their mutual-fund investments over the year through March—apparently for the first time—according to an analysis by Broadridge Financial Solutions.

That conclusion is based on the company’s tally of fund and ETF holdings in accounts at “retail” companies, including full-service and discount brokerages, which cater to individual investors and their advisers. Broadridge, based in Lake Success, N.Y., sells communications and technology services to financial-services companies.

Individual-investor holdings of ETFs grew by $267 billion in the year through March, a 24.4% increase, according to Broadridge. Over the same period, individuals’ holdings of long-term mutual funds grew by $255 billion, or 5.6%, the company said.

“This is the first period in which we’ve seen that the actual dollar amount in the retail channel is higher in the ETF space than in the mutual-fund space,” says Frank Polefrone, senior vice president at Access Data, a Broadridge unit in Philadelphia. ”It’s a big shift over what we’d seen a year ago or two years ago.”

Broadridge has been tracking the data for more than four years.

To continue reading about the latest ETF milestone, click here.

ETF News

Twitter’s Weak Q1 Jolts Social ETFs

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MarketsMuse blog update profiles the disappointing Q1 for Twitter and the impact it is having on social media ETFs such as Renaissance IPO ETF (IPO), Global X Social Media Index ETF(SOCL) and ARK Web x.0 ETF (ARKW). This MarketsMuse update is courtesy of Zacks Equity Research and their article, “Twitter Tweets a Weak Q1 & Soft View, ETFs in Focus“, with an excerpt below. 

On April 28, Twitter (TWTR) came up with a weak Q1 and a disappointing guidance. The social networking site then saw a freefall in its share price as it failed to live up to many investors’ expectations.


Q1 in Detail

The company’s first-quarter 2015 non-GAAP loss per share (including the stock-based compensation expense) of 20 cents was a penny ahead of the Zacks Consensus Estimate. Excluding the stock-based compensation expense, the company earned 7 cents per share on a pro forma basis.

Revenues of $436 million in the quarter fell shy of the Zacks Consensus Estimate of $455 million. ‘A lower-than-expected contribution from newer direct response marketing products’ was held responsible for lower-than-expected revenues. However, revenues grew about 74% year over year.

Market Impact

This subdued performance dampened investors’ mood as the stock was severely beaten down in recent trading sessions. Following the earnings leak on April 28, about 40 minutes ahead of the closing bell, Twitter shares saw a landslide, plunging over 18% for the key trading session of April 28 on about fourth times the regular volume.

Shares slid about 8.9% on April 29. However, after such a massive sell-off for consecutive two days, Twitter stock recouped 0.94% after hours. Year to date, the stock is still up 8.3%.

Twitter does not have a sizable exposure in the overall ETF world with only three ETFs – Renaissance IPO ETF (IPO), Global X Social Media Index ETF(SOCL) and ARK Web x.0 ETF ((ARKW – ETF report)) – having major exposure of 8.17%, 3.66% and 3.20% respectively, at present. Such a huge fall in one of the major components should impact these ETFs.  Below, we have discussed these three funds in detail:

To continue reading about Twitter’s disappoint Q1’s impact on ETFs, click here

ETF News, People Profiles

CEO Believes The ETF, JETS, Will Have A Smooth Take Off

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MarketsMuse blog update profiles U.S. Global Investors CEO’s, Frank Holmes, interview with Forbes’ Trang Ho. Frank Holmes’s company is launching a new airline ETF, JETS, tomorrow, Thursday, April 29, 2015. After so many past airline ETFs have crashed and burned, Holmes highlights how JETS is different. This interview is courtesy of Forbes’ article, “Why This CEO Believes New Airlines ETF Will Soar Even Though Its Predecessors Went Down In Flames” with an excerpt below. 

Frank Holmes, the CEO and chief investment officer of U.S. Global Investors, believes he can soar where others went down in flames. Holmes is launching a new airlines exchange traded fund on the stock market Thursday — U.S. Global Investors Jets ETF (JETS) — even though its predecessors were shuttled to ETF heaven for lack of investor interest. His San Antonio, Texas-based mutual fund firm oversees $927 million in assets.

Guggenheim Airline ETF (FAA), which rolled out in January 2009, was canceled in March 2013 after attracting only $21 million in assets. Direxion Airline Shares Fund (FLYX) was grounded in October 2011 only 10 months after take off. Its $3 million in assets were peanuts compared to the $25 million to $30 million needed for an ETF to break even.

Why did you launch this ETF?

Holmes: We believe the time is right for an airline ETF.  Thanks to wide-ranging structural changes in the airline industry, both domestic and international airlines are currently seeing strong growth in profits as well as demand. Although airlines have undoubtedly benefited from falling fuel prices—airlines’ single greatest operating expense—other important factors are also at work, which enable them to remain profitable in a highly competitive industry.

On a personal note, after flying more than 100 times last year, and over 8 million miles for the past 25 years, I noticed that all the new fees associated with flying began adding up. That’s when I thought to myself, if I can’t beat them, I might as well join them.

To continue reading this interview from Forbes, click here

ETF News

Solar ETFs Continue to Rise Thanks to China

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MarketsMuse blog update profiles solar ETFs such as Guggenheim Solar ETF (NYSEARCA:TAN) and Market Vectors Solar Energy ETF (NYSEARCA:KWT) bright future thanks to China’s clean energy drive. This update  is courtesy of Seeking Alpha’s article, “China’s Clean Energy Drive Brightens Solar Power ETFs” by ETFTrends reporter, Tom Lydon, with an extract below.

China revealed a huge surge in photovoltaic panel installations over the first quarter, a typically slow season for the industry, and if the country maintains its pace, it could portend a strong year for solar stocks and sector-related exchange traded funds.

Year-to-date, the Guggenheim Solar ETF (NYSEARCA:TAN) jumped 40.8% and the Market Vectors Solar Energy ETF (NYSEARCA:KWT) increased 30.3%.

On Monday, the China National Energy Administration announced that the country added 5.04 gigawatts of solar capacity, or just shy of France’s entire solar capacity, in the first three months of the year, Bloomberg reported.

China is planning to install as much as 17.8 gigawatts of solar power this year, or two-and-a-half times the capacity added by the U.S. in 2014, as part of its aggressive plans to cut carbon emissions. For instance, the country’s recent move away from small coal plants will avoid the annual release of as much as 11.4 million metric tonnes of carbon dioxide, which could help cut emissions for the first time in over a decade, Today Online reports.

Chinese companies make up 22.9% of TAN’s underlying holdings and a hefty 38.4% of KWT’s portfolio.

To continue reading about the effects that China’s push for clean energy has on the solar ETFs, click here.

ETF News

Largest US Health Insurer Creates Spark In Health Care ETFs

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MarketsMuse blog update profiles the largest US health insurer’s stellar first-quarter and the effects it has on the market with ETFs such as iShares U.S. Healthcare Providers ETF (NYSEARCA: IHF) receiving a huge boost from the insurer. This MarketsMuse update is courtesy of SeekingAlpha’s article from Zacks Funds, “Play UnitedHealth Q1 Strength With This Health Care ETF”  with excerpts from the article below. 

The largest U.S. health insurer UnitedHealth Group (NYSE:UNH) reported blockbuster first-quarter 2015 results. It topped our estimates on both the top and the bottom lines as well as raised its full-year outlook.

UnitedHealth Q1 Results in Focus

Earnings per share came in at $1.46, well above the Zacks Consensus Estimate of $1.33 and 32.7% better than the year-ago earnings. Revenues rose 13% year over year to $35.76 billion, edging past the Zacks Consensus Estimate of $34.73 billion. The robust performance was driven by rising enrollments and strength in the Optum Health Services business.

Market Impact

The market has welcomed UNH’s earnings beat and its strong outlook. Shares of UNH jumped as much as 4.3% following its earnings announcement on elevated volumes, making it the biggest percentage gainer on the Dow Jones Industrial Average Index for the day.

Since UnitedHealth is the first insurer to report earnings and a bellwether, the result has spread optimism across the broad health insurance sector with stocks of other players in the space in green at the close on the day. Some of these players include Aetna (NYSE:AET) – up 3.2%, Anthem (NYSE:ANTM) – up 2.4%, Cigna (NYSE:CI) – up 2% and Humana (NYSE:HUM) – up 0.5%.

Given UnitedHealth’s strength to lift the health insurer corner of the broad health care space and the solid run up in its share price, one ETF – iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF) – could be worth a look for investors seeking to ride out the recent surge. It has the largest allocation to this big giant and looks to be in focus in the coming days with room for upside.

Bottom Line

UNH’s earnings beat sent the stock higher on the day, thus becoming the cornerstone for other stocks in the space. A merger and acquisition frenzy and encouraging industry trends bode well for the health insurer stocks and the related ETFs.

Other ETFs like Health Care Select Sector SPDR Fund (NYSEARCA:XLV),Vanguard Health Care ETF (NYSEARCA:VHT), iShares U.S. Healthcare ETF (NYSEARCA:IYH) and Fidelity MSCI Health Care Index ETF (NYSEARCA:FHLC) also have a decent exposure to UnitedHealth in the range of 3-4%. These funds also have the potential to move higher on UNH strength in the coming days but with less momentum.

To read the entire article on health care ETFs from SeekingAlpha, click here.

ETF News

China Stock Craze Will Go A Step Further With First Leveraged ETF

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In the past year alone, investors have invested more than $2 billion into ETFs that invest in China’s stocks. MarketsMuse update profiles the new ETF, The Direxion Daily CSI 300 China A Sharell 2X Shares (CHAU), this ETF is the first in China-focused ETF of its kind in the US. This MarketsMuse blog update is courtesy of Bloomberg Business’s Elena Popina and Boris Korby’s article “China Stock Frenzy Gets More Manic With First Leveraged ETF“, with an excerpt below. 

Want to double down on China’s world-beating stock rally? Now there’s an exchange-traded fund for that.

Direxion Investments is starting the first ETF that seeks to provide twice the daily return of mainland Chinese stocks using leverage, according to Andy O’Rourke, chief marketing officer for the New York-based fund provider.

The CSI 300 Index, which the ETF will track, has climbed to a seven-year high amid a frenzy of stock purchases by Chinese retail investors as the government eased monetary policy to counter a slowdown in the world’s second-largest economy. The ETF will be the first in the U.S. to use derivatives to amplify the return of mainland Chinese stocks, or so-called A shares, a market to which foreign investors until recently only had limited access.

“It was only a matter of time before a leveraged China A-share ETF came out trying to capitalize on the increased interest and flows into the area,” Eric Balchunas, a Bloomberg Intelligence analyst, wrote in an e-mail on Tuesday.

To continue reading about this new ETF for China’s stocks, click here.

ETF News, Tech Talk

One New ETF Sets Itself Apart From The Rest

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MarketsMuse blog update profiles the new ETF, iShares Exponential Technologies ETF (XT), impress start. The ETF XT has collected over $600 million since its start in March of this year, this feat something only a few other new ETFs have been able to do. This MarketsMuse blog update is courtesy of Zacks Equity Research’s article, “Why Is This New ETF Growing So Fast?“, with an excerpt from below.  

The ETF industry has been growing by leaps and bounds since last year with issuers launching products with varied themes every now and then. While 2014 turned out a historic year for the ETF industry with assets hitting the $2 trillion (approximately) mark and over 180 ETFs being rolled out, 2015 took the story a step forward. A little over three months into the year, the industry has seen more than 65 launches with average market cap of the industry crossing $2.1 billion (read: 5 Very Successful ETF Launches of 2014). 

However, investors should note that all products do not witness an equal share of success. Some stand to gain massively and generate assets within a short span while some fail to secure investor interest and finally succumb to a shutdown. Let’s take a look at which new ETF, launched this year, emerged out as the best asset gather.

Inside iShares Exponential Technologies ETF (XT)

Investors might be surprised to know that this ETF has amassed over $600 million since its debut in March this year. It is a standard many ETFs fail to meet even after three years of launch. Apparently, the ETF saw this easy, or rather unimaginable success due to its unique investing objective.  

To continue reading about the success of the XT ETF, click here

ETF News

Oil ETF Investors Race For The Exits

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After pouring more than $6 billion into oil ETFs, investors are looking for a quick exit for two reasons: 1) the oil rebound might take much longer than originally expected and 2) the contango market is becoming an even bigger factor. This MarketsMuse blog update is courtesy of Reuters’ article “Look out OPEC! Oil ETF investors head for exit, risking new slump” with an excerpt below.

Oil investors who amassed a $6 billion long position in exchange traded funds, occupying as much as a third of the U.S. futures market, are now racing for the exit at a near record pace.

Outflows from four of the largest oil-specific exchange traded funds, including the largest U.S. Oil Fund (USO), reached $338 million in two weeks to April 8, according to data from ThomsonReuters Lipper. That is the first two-week outflow since September and the biggest since early 2014, marking a turnaround from heavy inflows in December and January on bets that oil prices would quickly rebound from six-year lows.

If the exodus gathers pace it could signal new pressure on crude oil prices that had begun to stabilize at around $50 a barrel this year following their 60 percent plunge, says John Kilduff, a partner at energy fund Again Capital LLC in New York.

Retail investors may have been “trying to bottom fish and got washed out with the recent new low,” he said.

To continue reading about the possibility of a new oil slump from Reuters, click here

ETF News

ETFs Are Having A Record Breaking Year, Near $3 Trillion Mark

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MarketsMuse blog update profiles the record breaking year ETFs have had. As investors become more comfortable with the idea of  using ETFs as an investment strategy, ETFs continue to become more and more popular. ETFs’ assets have grown at an exponential rate over last ten years. In fact, ten years ago ETF assets totaled $230 billion in the US and now we near the $3 trillion marker. This MarketsMuse update is courtesy of ETFTrends’ Tom Lydon’s article “ETF Industry Closing in on $3 Trillion” with an extract below. 

ETFTrends-logoExchange traded funds are becoming a household name as investors have been piling into the investment vehicle, expanding the global ETF market toward $3 trillion in assets.

After attracting an additional $36.1 billion, global ETFs saw $97.2 billion in inflows over the first quarter, or almost triple the total for the same quarter year-over-year. [ETFs Haul in $36.1 Billion in March]

As of the end of February, assets invested in exchange traded products, which include both ETFs and exchange traded notes, globally reached a new record high of $2.919 trillion.

“The global ETF/ETP industry had 5,632 ETFs/ETPs, with 10,902 listings, from 245 providers listed on 63 exchanges in 51 countries,” according to ETFGI’s Deborah Fuhr. “We expect the assets to break through the US$3 trillion milestone in the first half of 2015.”

To continue reading the article from ETFTrends, click here.

ETF News

The Highly Anticipated Launch Of The Apple Watch Isn’t Reflecting In Its ETFs

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What time is it? Time for you to a buy a watch, an Apple Watch that is. After the announcement of the Apple Watch this past Fall, consumers have been waiting to get their hands on this product. Understandably so, investors couldn’t wait the launch either. With prices for an Apple Watch ranging from $349-$17,000, it will most likely bring a good return on investment. However, as pre-orders have been coming in for the Apple Watch, the same can’t be said for ETFs heavy on shares of Apple. MarketsMuse blog update profiling the little excitement in Apple ETFs is courtesy of ETF Trends, Todd Shriber, with an extract from his article, “Apple Watch a Non-Event for Apple ETFs” below.

ETFTrends-logoApple (NasdaqGS: AAPL) is taking preorders for its much ballyhooed Apple Watch. Or was taking preorders.

Nearly of the models made available to U.S. consumers sold out in just six hours and it looks the April 24 availability date announced by the company at the Apple Watch unveiling event last month is getting pushed back. Perhaps as far out as the third quarter.

“Whether due to high demand or low supply, all models of Apple Watch have now almost entirely sold out with many slipping delivery date estimates in mere minutes of preorders opening. In the US, the 38 mm Stainless Steel Case with Black Classic Buckle is the only model still on offer with a ‘April 24th – May 8th’ shipping date,” reports9to5Mac.com.

Unveiling a new product with preexisting, pent-up demand is old hat for Apple and that might explain the lack of enthusiasm for the blowout preorders being displayed by exchange traded funds heavy on shares of Apple. Even shares of California-based Apple are trading slightly lower today.

To read the full article from ETF Trends’ Todd Shriber, click here.

ETF News

ETF Providers Look To Level Playing Field

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MarketsMuse blog update profiles ETF providers pushing to level the playing field with their mutual fund competitors by pushing to gain more information on clients who invest in ETFs, just like mutual funds already do. A new initiative from the Canadian ETF Association is doing just that. An excerpt from The Globe and Mail’s article, “ETF providers want to know who’s buying” is below explaining more about the initiative.    

Exchange-traded fund providers say they’re at a disadvantage compared to their mutual fund competitors and are aiming to level the playing field with a new lobbying effort to obtain data on the financial advisers who sell ETFs.

The initiative, which is being spearheaded by the Canadian ETF Association (CETFA), will provide ETF companies with information on the financial advisers who are selling exchange-traded funds, and the breakdown on which funds they are selling to their clients. Mutual fund companies already receive such information.

If implemented, it could result in a surge of ETF sales within the Canadian marketplace.

The lack of adviser information has plagued the rapidly growing ETF industry, which competes in a market where investors are heavily invested in mutual funds. Canadians hold more than $1.22-trillion in mutual funds compared to $80-billion in ETFs, as of February, 2015.

Currently, ETF providers may receive a report from an individual investment firm that shows the total number of ETFs held by their clients. But the reports are not sent on a regular basis and do not include information on the individual financial advisers who purchase the funds on behalf of clients.

To read the rest of the article from the Globe and Mail, click here.

ETF News

Coca Cola, Procter & Gamble, and Walmart ETF Is Promising

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MarketsMuse blog update profiles a safe ETF that thrives with the market during the good times and is safe during the bad times. The Consumer Staples Select Sector SPDR ETF (XLP), whose top three holdings are Procter and Gamble, Coca Cola, and Walmart, is the best ETF to invest in. This MarketsMuse blog update is courtesy of Investopedia with an excerpt below. 

If you’re looking for a safe investment that’s highly likely to appreciate during good times and capable of holding its own during the worst of times, then you have come to the right place. The Consumer Staples Select Sector SPDR ETF (XLP) is one of the most appealing exchange-traded funds (ETF) in the ETF universe for those who are looking for an investment opposed to a trade.

XLP Basics

IPO Date: Dec. 16, 1998 (Up 82.65% since IPO)

Total Assets: $8.10 billion (as of 4/2/15)

Yield: 2.33% (fairly generous)

Expense Ratio: 0.15% (well below average)

Annual Holdings Turnover: 3.94% (not too actively managed, demonstrates poise)

Purpose: Tracks the performance of the Consumer Staples Sector Index

Top 3 Holdings:

The Procter & Gamble Co. (PG): 12.39% of assets

The Coca-Cola Co. (KO): 8.93% of assets

WalMart Stores Inc. (WMT): 7.28% of assets

To read more about XLP from Investopedia, click here.

ETF News

ETF Investors Look For Success Outside The US

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MarketsMuse blog update is courtesy of CNBC’s Jeff Cox. As we have seen so far this year, ETFs have been becoming increasingly popular among all investors. MarketsMuse blog update profiles the biggest trends in ETF investing, including investing in international currencies. An excerpt from CNBC’s Jeff Cox’s article, “Hottest ETFs are currency hedges, non-US funds” is below. 

Exchange-traded funds have surged in popularity in 2015, but it’s not U.S. equities that are leading the charge.

Investors poured $97.2 billion into various ETFs and other similar products in the first quarter, marking the $2.9 trillion industry’s biggest start ever despite a wobbly U.S. stock market and a testy geopolitical climate, according to data from BlackRock, the world’s largest provider of such funds. (U.S.-based ETFs have about $2.1 trillion in assets.)

There essentially have been three major investment themes this year, and players in the exchange-traded market have made each work: A quest for investment themes outside the U.S.; the offshoot of that, which has seen domestic attention turn away from large caps and toward mid- and small-sized companies, and capitalizing on the big moves in currency markets, particularly an appreciation of the U.S. dollar and the decline of its global competitors. The greenback has gained 7 percent so far against a trade-weighted basket of other leading currencies.

Some $59 billion has found its way into products that focus on currency hedging, according to ETF.com, which said the group represented four or the top 10 funds for investor flows during the first three months of the year.

To read the rest of the article on ETF investment trends from CNBC, click here.