Etf Deathwatch For May 2014: Membership Count Trickles Further Below 300 | Financialcontent Business Page

Will Fed index buy and sell signal tapering hurt gold prices? The SPDR Gold Trust, often referred to just as GLD, allows for a shares-for-physical-gold exchange too, but it’s definitely not for the Average Joe investor. GLD investors who have a position in excess of 1 basket — a set amount of shares, which for the GLD ETF is 100,000 shares,worth about$12.4 million at current prices– can exchange their shares for physical gold, according to Will Rhind, a managing director at the World Gold Council, an organization that sponsors the SPDR Gold Trust. The exchanges are done by authorized participants, which are typically big investment banks, said Rhind. “Because of the size of the baskets (100,000 shares for GLD), individual investors aren’t likely to have a position big enough for a redemption. The people who are creating baskets or redeeming shares are generally on the institutional level.” Gold is delivered in ‘LBMA Good Delivery bars,’ which can weigh 400 ounces to 430 ounces.

The dominant theme for May additions seems to be international funds. Of the ten products added to ETF Deathwatch, six have an international flavor. Of the minority, three are short funds and the fourth an insurance ETF. Two of the international funds added to the list (db X-Trackers MSCI AC AP ex Japan Hedged (DBAP) and db X-Trackers MSCI UK Hedged Equity (DBUK))were designed to provide exposure to foreign market securities without the effects of currency translations. In April, WisdomTree introduced five currency-hedged ETFs aimed at certain sectors of Japans stock market. It will be interesting to see whether the category is out of favor, or if it is just the U.K.

It does a great job in holding just a mere 19.4% in its top 10 holdings considering the fact that it holds 356 securities in total. Nestle, Novartis and Roche Holdings are the top three holdings of the fund, each having an allocation between 2.2% and 2.8%. As far as sector holdings are concerned, it relies heavily on Financials, followed by Consumer Staples, Healthcare, Industrials and Energy, each with double-digit exposure. All these sectors combined account for more than half of the fund assets.

A link has been sent. Done Wheat ETF: Leader or Laggard? By Sweta Killa 4 hours ago 0 shares Content preferences Done Following a lackluster 2013, agricultural commodities such as wheat have enjoyed a smoothride this year on chilly weather and drought conditions in the U.S. Southern Plains. Fears of export limitations from Ukraine, one of the largest exporters of wheat, have raised supply concerns and drawn attention to this commodity (read: Wheat ETF Surging on Ukraine Issues, Weather Outlook ). But things lately took a rapid turn as wheat fell over 9% over the past 10 days.

Expense Amount is the estimated annual expense for holdings of 10 shares of a given ETF. This is computed by Expense Ratio and the net asset value of 10 shares. The fee will be directly deducted from the ETFs asset. For example, if the NAV of a given ETF is 100 and its expense ratio per year is 1%, the incurred expense for a position of 10 shares would be $10 yearly (NAV per share*10 shares*Expense Ratio= 100*10*1%).


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s