Here’s how ETFs became one of Wall Street’s hottest investment products

REUTERS/Lucas Jackson Exchange-traded funds have become wildly popular in the past decade, and account for a quarter of all trading activity on exchanges. We spoke to two experts, a 15-year veteran of the product and a hedge fund founder, about how ETFs can help investors balance their portfolios.  You’ve probably heard the term ETF by […]

Don’t confuse ETFs with ETPs

Reuters/Simon Dawson Don’t confuse Exchange-Traded Products with Exchange Traded Funds. Over 97% of the $ 5 trillion global ETP market consists of exchange traded funds (ETFs), which are plain vanilla, traditional, liquid funds. ETP’s are financially engineered investments that bet on against the very indexes that they track. As the recent market volatility made clear, there’s […]

Road to Bitcoin ETFs proves full of SEC obstacles

(Reuters) — The going is getting tough for U.S. companies hoping to win the race to bring a bitcoin exchange-traded fund to market. Bitcoin’s 1,500 percent surge last year has stoked investor demand for any product with exposure to the red-hot asset. A host of companies are jostling to launch exchange-traded funds which would open […]

4 reasons you should avoid ETFs tracking the entire US market

AP Images / Richard Drew The amount of money that’s flowed into ETFs tracking the benchmark S&P 500 is concerning. These funds provide minimal diversification, making continued investment in them highly risky. A decade after the Global Financial Crisis, investors seem to have forgotten about risk. The amount of money that has flowed into S&P […]

Major stock exchange wants to launch Bitcoin ETFs

BI Intelligence This story was delivered to BI Intelligence “Fintech Briefing” subscribers. To learn more and subscribe, please click here. The New York Stock Exchange (NYSE) has filed with the Securities and Exchange Commission (SEC) to list two exchange traded funds (ETFs) that would track Bitcoin futures. The funds, offered by ETF provider ProShares, are called the […]

ETFs are being unfairly blamed for one of the market’s biggest problems

Reuters / Lucas Jackson As the world’s fastest-growing investment product, exchange-traded funds are a lightning rod for both effusive praise and cutting criticism. On one hand, they provide an easy, low-cost way for investors to get diversified exposure to a number of markets. On the other, they funnel traders into many of the same companies, leaving […]

Hedge funds are loading up on these 17 ETFs

REUTERS/Lucas Jackson ETFs, or exchange-traded funds, are emerging as extremely popular investments. The funds are designed to track a specific set of stocks, commodity or another group of assets. The idea is that investors can diversify their portfolios by simply investing in a single fund, rather than each of the individual assets the fund invests in. […]