etfs

He traded derivative contracts, using the bank's money, based on securities included in ETFs, according to people familiar with the matter.

Investors ought to be told that the market for ETFs may not always be as liquid as they would like.

"Some of the startup ETFs would give one of their appendages for the sort of response we have had, " Thomas says.

However, these warrants expire in less than a year and the day-today pricing is much more complex than the US ETFs.

Unlike units in a conventional mutual fund, ETFs can be traded all day long.

Such ETFs merely provide a simple way of investing in a basket of equities, and are not a rival form of equity.

Dicker is particularly contemptuous of oil ETFs of the kind that many small investors have used as vehicles to diversify their holdings.

Almost 55 per cent of institutions around the globe now using ETFs expect their usage to increase in the next three years, he reports.

The trading commissions notched up by all this activity could overwhelm the cost advantages of ETFs, he argues.

As the US-based funds flee, some of it has flowed into oil ETFs.

In products labelled as ETFs, at least 80% of the portfolio must comprise securities matching the fund's name.

But if markets keep rising, ETFs may be to the next generation of day-traders what dotcom stocks were in the late 1990s.

Portfolios are rebalanced throughout the day so ETFs trade at or close to the net value of their assets, unlike many mutual funds.

"One of the challenges in Asian markets is a lack of familiarity with ETFs, so investor education is the key, " Mr Good says.

If active ETFs can be made to work, and receive the SEC's blessing, they could take the business to a new level.

One of the goals of the SFC is to make all ETFs more comparable with each other, regardless of their underlying assets.

Some of the biggest ETF traders are firms that try to profit from discrepancies between prices of ETFs and the stocks that they track.

Another problem lies in the existence of leveraged ETFs, where losses as well as profits can be magnified.

Investors can buy the shares of producers, but underlying commodity prices often perform better, so ETFs should be considered, if available.

The complex inner workings of these funds, known as leveraged ETFs, leads them to buy when markets are up and sell when they're down.

That surpassed purchases made by ETFs and surprised analysts, who until now had no clear insight into the size of China's buying.

Institutional investors report using ETFs to make tactical adjustments, equities cash and for transitions.

Many advisers recommend against oil ETFs, which suffer from a market malady known as 'contango. '

After considerable debate, they decided to cancel trades in stocks and ETFs that had fallen or risen 60% or more.

He adds that the growth of ETFs has been a key driver in this process.

After all, "exotic" ETFs are still a small proportion of the overall market, and the instrument is not as inherently risky as, say, CDOs.

Just because these ETFs have experienced dramatic declines does not mean that they are bound for a rally.

The problem is not on the same scale: synthetic ETFs and ETNs are a small proportion of the industry.

This could turn out to be another special quality of ETFs.

The simple lesson in this exercise is to look at the portfolios of your mutual funds and ETFs.

ETFs are securities that resemble mutual funds but trade like stocks, and are commonly designed to replicate the movement of an index.

However, in a sign of returning confidence in global markets, investors have returned to ETFs en masse.

A linked problem is the tendency for ETFs to be the main way in which investors seek exposure to some asset classes, notably gold.

The surge of interest in gold ETFs has been encouraged by (and may have in turn contributed to) a rise in the bullion price.

Worse still, investment banks may have an incentive to establish ETNs and synthetic ETFs as a cheap way of financing their assets.

I trade ETFs but with only a very small portion of my personal wealth.

One of the biggest changes brought by ETFs has been the promotion of "fundamental indices" .

Due to their liquidity and trading flexibility, ETFs are quickly becoming the favorite vehicles for building investments in precious metals.

However, the growing popularity of what are called synthetic ETFs is causing particular worries.

Second semester: investing -- stocks, bonds, foreign currencies, mutual funds, ETFs, precious metals, real estate.

Nevertheless investors will probably keep pursuing alpha, even though the cheaper alternatives of ETFs and tracker funds are available.

The funds will have to carry a marker to distinguish them from physical ETFs.

Farley Thomas, head of ETFs at HSBC, said HSBC was responding to customer demand by launching its own branded ETFs.

Morgan Stanley estimates that ETFs control some $487 billion of assets, up 16. 7% from a year ago.

In late March the Securities and Exchange Commission (SEC) issued a moratorium on the creation of new ETFs that use derivatives.

Some ETFs have become increasingly complex and opaque because banks have identified ways to replicate derivative exposure using ETFs.

These short ETFs will suffer from greater tracking error compared with traditional ETFs, because futures are harder to manage than stocks.

Last month, I happened to visit New York's Tutankhamun exhibition, to chair a dinner conference on gold exchange-traded funds (ETFs).

These ETFs sometimes don't track markets exactly, especially when trading gets volatile, so they're not a perfect solution.

ETNs typically do a good job of tracking the underlying index, but can be less liquid than similar ETFs.

Analysts anticipated a rush of investment dollars into the market for PGM, or platinum metals group, if ETFS is given the final nod to list.

He argues regulators should consider limiting the proportion of synthetic ETFs within an investment bank's trading portfolio.

Nevertheless, the rapid trading of ETFs is an area of concern, especially when the underlying assets are illiquid.

Over a three-week period last month, assets at a half-dozen silver ETFs soared about $4 billion, or more than 20%.

The Financial Stability Board (FSB), a committee of financial supervisors, issued a report on ETFs.

I recommend short positions (including leveraged bear ETFs) against these stocks for the very near term.

Exchange-traded funds, or ETFs, are baskets of securities that trade like a stock.

China's regulators have yet to allow Chinese fund-management companies to issue exchange-traded funds or permitted foreign ETFs.

That spells danger for investors in leveraged ETFs, which use debt to magnify the returns of the index they follow.

To mitigate this risk, synthetic ETFs are usually fully or almost fully collateralised.

In recent years commodities ETFs have emerged as well.

The ETFs have to cross above their 200-day moving averages to confirm they've started an uptrend, according to his models, he says.

Despite some eerie parallels, it is hard to conclude that ETFs yet pose a systemic risk on the same scale as mortgage-backed securities.

When demand for the ETFs is higher than the quota available, investors have to pay up.

The Direxion three-times leveraged ETFs launched in November have attracted daily volume in the billions of dollars.

The questions come as ETFs in general are coming under heightened scrutiny about whether they distort markets.

"But we also saw significant purchases of ETFs [exchange traded funds] and gilts [government bonds]. "

Other factors include a growing number of ETFs and other investment vehicles that offer plays on the commodity.

Commodity ETFs typically buy futures contracts rather than the underlying physical substance.

However, the product range needs to expand if investors are to start using ETFs to their full potential as portfolio building-blocks.

Many ETFs purchase gold using spot-month futures, and it is unclear how the proposed rules will apply to these purchases.

Trading like stocks, the ETFs make gold investing easy, opening the market to more individual investors.

Between 60% and 70% of those trades were in ETFs, far above their actual weighting in the market.

With many China ETFs 20% or nearly 20% off the October lows, a bull appears set to savor China's soft economic landing.

The second big-screen "hedge position ETFs real-time monitoring system, " always showed several warrants related data.

Some analysts recommend inverse ETFs, which provide a return that's the inverse of global markets or sectors.

ETFs are especially attractive for investors who want the benefits of owning stocks without the risks.

You can trade the "Ag" rally by investing in exchange traded funds (ETFs), but this amounts to speculation on food.

But less agile investors risk being stranded (including those invested in ETFs. ).

The result: The ETFs lose money as they buy new contracts, even when prices are rising.

That has led to the creation of ETFs aimed at US retail investors.

Exchange-traded funds (ETFs) provide low-cost access to the Russian market.

Finally, investment demand has been torrid, as seen with the surge of capital into gold-backed ETFs.

A failure might diminish the appeal of ETFs as a whole.

BONDS AND CASH: The portfolio has a 4% allocation to a money-market fund, and 26% in bond funds and ETFs.

Another bearish sign: The shorter-term, 50-day moving average of all three ETFs crossed below the 200-day at the start of this month.

And gold ETFs carry much less risk than owning shares of gold mining companies, he adds.

All these "inverse ETFs" are structured around a very simple idea: they use futures instead of short positions in stocks.

ETFs, he explains, are expected to replicate the underlying index precisely (and they trade continuously).

As an indication, China ETFs are now trading at 10 per cent premiums to their net asset values.

As liquidity disappeared that day, many ETFs traded down nearly to zero.

Chinese consumers, with their traditional affinity for 24-karat gold jewelry, are a prime target for new gold ETFs.

But our volume is now concentrated in Citi and some bank ETFs.

At current growth rates, these ETFs could rank in third place by the end of 2012.

In bonds, there are ETFs linked to government, corporate and high-yield debt and paper of varying maturities.

ETFs, which typically track market indexes and trade like stocks, have become a big business for banks.

But fund managers quickly elaborated on the basic design.

I also have maintained or expanded my holdings of commodity ETFs.

In the US, ETFs are coming under growing regulatory scrutiny.

The popularity of ETFs has drawn scrutiny, however.

ETFs allow retail investors to behave like hedge funds.

But such ETFs offer much less diversification.

While it's also possible to short oil ETFs, no one does.

There are about a half-dozen Delta One products that banks offer, including ETFs.

They are doing this since ETFs are infinitely more convenient than gold bars.

Mr. Schiff figured that at Thursday's close there were buy orders from leveraged ETFs totaling roughly $4. 5 billion.

Mr. Burbank argues that storage costs are lower than the expenses of ETFs.

Investors can also purchase ETFs or mutual funds holding shares of oil companies.

BlackRock's survey found more than 60 per cent of net inflows into Asian ETFs in 2010 had gone into instruments providing exposure to China.

BlackRock found 93 per cent of the 125 ETFs cross-listed in Asia had their primary listing in the US or Europe.

The most vocal critic of ETFs is John Bogle, Vanguard's former boss.

ETFs are open-ended index funds that trade like stocks.

Last Wednesday, shares of some Asian gold miners and ETFs hit all-time highs.

If markets tumble, these ETFs should rise in value.

Asset growth in these ETFs has been decelerating for months.

Gold futures are the best way to invest in gold, some say, because they track gold with fewer transaction costs than gold shares or ETFs.

ETFs have been around since 1990, when the first fund was launched in Canada.

The fundamental ETFs have opened a debate about the nature of indices and how they should be used.

Another risk concerns a change in the nature of ETFs.

Investors have poured $32. 8 billion into international stock ETFs as a group in 2007.

There are a multitude of ETFs and mutual funds.

But there are many mutual funds and ETFs that focus on Europe.

The average annual fee on ETFs stands at around 33 basis points, compared with 146 basis points for active funds, according to BlackRock.

His indicators signaled a sell rating on the three China ETFs in mid-January when they fell below their 200-day lines.

The four ETFs all carry a total expense ratio of 50 basis points.

S. market. Here, ETFs are an easy way to place a bet on a sector.

Ms Leung said she was also keen to "eventually see ETFs listed in Hong Kong denominated in renminbi with underlying Hong Kong companies" .

But gold ETFs have been hugely popular, seeing inflows of $12 billion in 2009 and $9 billion in 2010.

In the second quarter of 2010, investors purchased more than 274 tonnes of gold through ETFs.

There are genuine economies of scale in ETFs.

The iShares, SPDRs and PowerShares China ETFs vaulted 53%, 68% and 63%, respectively, in 2007.

The answer was the development of "synthetic ETFs" and related products such as exchange-traded notes (ETNs).

Here, ETFs are an easy way to place a bet on a sector.

"They mow lawns, and now I can buy ETFs for them with their lawn-mowing money without paying a commission, " he says.

BGI says there are now 257 emerging market equity ETFs with total assets of $130bn, up from just $71bn in January.

No fewer than 136 exchange-traded funds (ETFs) were launched in the first half of 2006, more than in the whole of 2005.

For example, exchange traded funds ('ETFs') alone account for half of the activities in oil future market.

Because these ETFs "reset" on a daily basis, they can easily stray from their targets.

The number of ETFs has swelled to 2, 747 (see chart 1).

Earlier this month three Hong Kong ETFs were cross-listed on the Taiwan exchange and a Taiwan ETF listed in Hong Kong.

Other China-focused ETFs invest in Chinese companies that are listed in Hong Kong or other markets.

In 2008, holdings in silver ETFs increased 2, 339 tonnes to 8, 253 tonnes, so the pace of inflows this year has stepped up considerably.

At the end of May ETFs in America held around $792. 6 billion in assets, according to Morningstar, a research firm.

They have become a formidable force in stock markets too: last year, more than 8% of all trading in American equities was done through ETFs.

Most of these ETFs are listed in Hong Kong or Singapore.

Synthetic ETFs have become popular with Hong Kong investors and their complexity and lack of transparency has prompted additional scrutiny.

Last year ETFs accounted for 9% of all trading volume in America's equity markets but nearly two-thirds of the value of all fails.

From today synthetic ETFs listed on the Hong Kong Stock Exchange will be distinguished by an "X" in front of their names.

Third, because it is easy for private investors to buy and sell ETFs, they may be tempted to trade them too often.

The majority of the 67 ETFs listed on the Hong Kong Stock Exchange are synthetic, using derivatives to track indices.

The Operational Modes of ETFs and Their Competitive Edges

The Characteristics of ETFs and Its Executing Risks in China

Discussion of problems about introducing ETFs in China

An Analysis on Global Market of ETFs and the Prospect of Development in China

Thoughts on Launch of ETFs in China

Several Reflections on the Development of ETFs in China