This week started out slow, with most in America paying more attention to the pre-election conventions over the last two weeks than anything else. But on Thursday Mario Draghi, President of the European Central Bank, was able to spark a rally on Wall Street; the ECB announced its plan of buying up vast amounts of government bonds from countries like Spain and Italy that have been the slowest to recover in the euro crisis. On the home front, markets ended on a positive note despite a disappointing August employment report; investors are now even more eager for the Fed to announce stimulus measures to speed up the recovery [see also ETF Tools Every Investor Needs].
Two new ETFs with intriguing strategies launched this week to kick off September. ALTL, a new product by RBS, is an ETN which allocates its assets across one of three equity indexes based on historical performance data. Global X also launched a new product this week, JUNR, which is designed to track global small cap companies working in any part of the mining industry.
Below we outline three of the best ETF stories from around the web this past week:
6 Ways To Profit From Draghi’s Bond Plan at Market Watch:
Every day brings more news from Europe that its politicians and banking officials are solidifying plans to help get their currency back on track. Especially since earlier this week when Mario Draghi offered up his bond buying solution to ensure financial stability in Italy and Spain. With bond yields in Europe overshadowing low rates offered in the U.S., gaining exposure to riskier debt overseas can rake in big profits, although the risk is certainly sky-high. Deborah Levine has 6 ETFs that offer exposure to this Euro-focused opportunity.
What Are the Most Popular Commodity ETFs? at Commodity HQ:
For the longest time, investing in commodities was out of the reach of the general public and was only handled by specialized traders. Luckily, the evolution of the ETF industry has opened up this asset class to investors of all experience levels, making it easy to establish both broad and focused exposure to this corner of the market. Jared Cummans discusses why commodities will always attract investor interest and which commodity ETFs are the most popular to invest in today.
Why You Shouldn’t Worry About ETF Closures at ETF Database:
Recently there have been a number of ETF closures, which have led many Wall Street professionals to worry about the health of the industry as a whole as well as the fate of their investments. Many are drawing comparisons between mutual funds shutting down and ETF closures, but a closer look reveals that the two aren’t that far apart. Stoyan Bojinov discusses why a couple of funds leaving the ETF universe is healthy and nothing to get worked up about.
Disclosure: No positions at time of writing.
- Mario Draghi