Nearly one-quarter of respondents said they felt completely in the dark about the potential effects. Therefore, many investors who purchased bonds and fixed-income funds for safety may be in for a shock when they get their balance statements at the end of the third quarter. In the Edward Jones survey, one-third of respondents between the ages of 18 and 34 replied they have “no idea” how interest rate changes will affect their portfolios. One-quarter of those 65 and older also said they had no clue.
The average net expense ratio (ER) grew from 0.61% to 0.62% during the 12-month period ending in June 2013 according to data provided by Morningstar . The increase is a result of new product development that has focused on more complex strategies and alternatives to stocks and bonds. ETPs include exchange-traded funds ( ETFs ), exchange-traded notes (ETNs), grantor trusts, partnerships and other products that have an intraday share or creation and redemption mechanism. ETFs dominate the industry. They account for roughly 80% of all products and 90% percent of all assets. Figure 1 illustrates the gradual ascent in the average net expense ratio (ER) of all ETPs. It represents about 1,470 funds through June 2013.
TGR: Why did you choose to build an ETF around junior silver companies instead of large-cap silver miners or midtier producers? AC: First off, ETFs are like that line in the movie “Talladega Nights”: “If you’re not first, you’re last.” We did not want to be second to market with any of our fund ideas; every element in Top ETFs to buy in Singapore our suite of products is the first of its kind. When we looked at the precious metals mining space, we saw several gold equity plays. We wanted to create the first junior silver mining fund. People who are fans of the junior mining space are there because they get that higher beta play.
State Street to Open Emerging Market ETF Without BRIC Countries
(STT) , the second-largest provider of exchange-traded funds worldwide, is seeking to counter its biggest rivals dominance of emerging-market stock ETFs with a fund that excludes Brazil, Russia, India and China, known as the BRIC nations. State Street asked the U.S. Securities and Exchange Commission for permission to open the SPDR MSCI Beyond BRIC ETF, according to a regulatory filing dated yesterday from the Boston-based firm. The ETF would invest in developing-market stocks in Chile , Columbia, the Czech Republic, Indonesia, South Africa and Turkey, among others. This would allow investors to get more exposure to some of the smaller, potentially higher-growth areas of the market, Todd Rosenbluth , director of ETF and mutual fund research at S&P Capital IQ in New York, said in a telephone interview. The new product would expand State Streets offerings in an area dominated by two ETFs from Vanguard Group Inc.