Stocks tumbled across the board this week after disappointing U.S. job data sent equities into a freefall, with the Dow Jones landing as the biggest loser as its 2012 gains were completely wiped out. Nonfarm payrolls rose only 69,000 in May, well below the expected level, while the unemployment rate ticked higher to 8.2%. News from overseas was also less than cheery, as grim China and Euro Zone data cast a darkening outlook for the future of the global economic recovery [see also Five ETFs That Will Live Or Die By China].
This week wrapped up one of the slowest months of the ETF industry on the product development front, with only 8 new funds total hitting the market. Despite the slowdown, investors were introduced to one new intruiging product from Exchange-Traded Concepts, which seeks to replicate a benchmark that is constructed based on publicly disclosed positions of hedge funds and institutional investors.
Below we outline three of the best ETF stories from around the web this past week:
3 Dynamic ETFs for a Risk-Off World at The Street:
After a brutal month for Wall Street, it is not surprising to see many risk averse investors heading for the hills, flocking to their preferred ”safe haven” asset classes. With Euro drama heating up once again and equity markets taking a major dip, many are seeing direct effects on their bottom lines. To capitalize on this downturn and the volatile environment, investors are now looking to more sophisticated products for new opportunities. In this article, author Gary Gordon outlines 3 dynamic ETFs for a “risk-off” world.
The Road To Greece Is Flawed at IndexUniverse:
Recently it seems as though the world is sitting at the edge of their seats, waiting to see what comes of the tense and rather grim Greek debt negotiations. And for those investors with significant exposure to the debt ridden country, this year has been less than pleasant. Holder’s of Global X’s FTSE Greece 20 ETF (GREK) have also taken significant losses, as the top-heavy fund continues its free fall. This article, by Ugo Egbunike, takes a closer look under the hood of GREK to see if this hyper-targeted fund can survive or if its methodologies make it a doomed investment.
Covered Bond ETFs: Everything You Need To Know at ETF Database:
Last week, ProShares introduced yet another first for the ETF industry with its debut of the new Covered Bond (COBO). This fund is designed to offer exposure to a unique segment of the debt market known as “covered bonds.” These bonds are simply a subset of the corporate bond space that are specifically issued by financial institutions. In this article, author Michael Johnston takes a closer look at the universe of covered bonds, explaining both their structure and nuances.
Follow me on Twitter @DPylypczak
Disclosure: No positions at time of writing.
- May ETF Roundup: Launches, Filings, and Closures
- Covered Bond ETFs: Everything You Need To Know
- ETF Insider: Is Spain The New Greece?
- ProShares Launches Covered Bond ETF (COBO)
- December ETF Roundup: Launches, Filings, and Closures