Oct. 17 had the biggest daily inflow in a month. Month-to-month swings in ETF flows totaled more than $53 billion since June, about six times the 13-year average, data compiled by Bloomberg show. Fluctuations are tracked by comparing outstanding shares (REGN) in the funds, which change as demand from investors rises and falls, with their prices, which are pegged to an underlying index or asset. Stock Flows Funds that specialize in U.S. stocks received $12 billion in October after $14 billion last month.
The First Trust US IPO Index ETF (FPX.P), for example, is up roughly 33 percent year-to-date. The new Renaissance ETF has an expense ratio of 60 basis points, roughly a fourth of the cost of its mutual fund cousin, the Renaissance Global IPO Plus Aftermarket Fund (IPOSX.O), which has an expense ratio of 2.5 percent. In an actively managed mutual fund, a manager can select stocks and request IPO shares ahead of time to build positions, instead of passively tracking an index. The Renaissance IPO Index, which the new ETF tracks, includes common stocks, depository receipts and operating units of newly public U.S. companies.
AllianceBernstein LP even went so far as writing to clients that BlackRock was suffering from a case of Vanguarditis. That apparent sickness turned into a cure for investors, though, as the fading market share led BlackRock officials to realize that the firm could do more to serve classic buy-and-hold investors. Thus the launch of the Core series. We pay attention to what competitors are doing, but I wouldn’t say it drives our behavior, said Sue Thompson, head of the registered investment adviser group at BlackRock. The idea behind Core was to make it easier for financial advisers and retail investors to choose ETFs for their portfolios, Ms.
Investors seemed absolutely certain that a default would not happen, so there was plenty of hope fuel for the fire. The leading sector ETF for the week was the Energy Select Sector SPDR ETF Fund (NYSEARCA:XLE) which rose 3.14%, and the runner up sector ETF was theFinancial Select Sector SPDR Fund ETF (NYSEARCA:XLF)which rose 2.58%. For now we are likely looking at higher prices ahead, unless of course Congress befuddles markets once more. Sector ETF Update: Consumer Discretionary Select Sector SPDR Fund ETF (NYSEARCA:XLY): +2.06%, This ETF tracks the Consumer Discretionary Select Sector Index which includes media, retail, hotels, leisure, and restaurants. Sector SPDR Trust SBI Interest ETF (NYSEARCA:XLK): +2.43%, This ETF tracks the Technology Select Sector of the S&P 500 Index which includes companies in computers, semiconductors, telecommunications, and wireless.
New ETF targets stocks with 25-year online dividend history
Jim Colby, a senior municipal strategist at Van Eck, told Bloomberg the ETF could debut later this year or next, depending on feedback from the SEC. Puerto Rico munis have risen to infamy this year as the S&P Municipal Bond Puerto Rico Index is flirting with a year-to-date loss of 20% compared to a decline of around 1% for the S&P Municipal Bond Index. Puerto Rico, a territory of the U.S., has $70 billion in munis outstanding and those bonds have the lowest possible investment grade rating. [ BlackRock Cautious on Muni Bond ETFs ] The commonwealths bonds have rallied since officials gave a webcast briefing for investors on Oct. 15 in which they said the territory has sufficient funding to avoid borrowing before June 30, according to Bloomberg.
(APD), Dover Corp. (DOV), Emerson Electric Co. (EMR), McGraw Hill Financial Inc. (MHFI) and Walgreen Co. (WAG).
A report from Standard & Poors on Thursday, suggesting that fourth quarter GDP would expand 0.6 percent less than previously anticipated as result of the government shutdown, raised expectations that the Federal Reserve would delay the taper of its bond purchases. Those expectations were confirmed by Thursday afternoons report from The Wall Street Journals Jon Hilsenrath entitled, Fed Unlikely to Trim Bond Buying in October. The likelihood that quantitative easing would continue at full strength for the foreseeable future weakened the dollar against the euro. On Thursday and Friday the euro came close to hitting its 2013 high of $1.3710, which was reached on February 1. The 17-nation currency reached a high of $1.3682 on Thursday and climbed as high as $1.3699 on Friday. After, the FOMCs September 18 decision against the Septaper, FXE broke through the overhead resistance FXE had been experiencing at $133. This ETF has been trading above that level for twenty-four consecutive days. Fridays 0.01 percent advance to $135.37, allowed FXE to finish the week with a 0.96 percent advance, remaining 1.96 percent above its 50-day moving average of $132.76. FXEs big gains on Thursday and Friday broke the head and shoulders pattern which had formed on the FXE chart. Usually, a rise above the neckline breaks the pattern. On Thursday, we saw FXE rise well above the top of the head, where it remained on Friday. The Relative Strength Index for FXE rose to 66.69 from last Fridays close at 58.31. The MACD just crossed above the signal line, suggesting that FXE should continue to advance during the immediate future.