Bigger Isn't Always Better - IndexUniverse.com

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Bigger from page 10 The big funds we mentioned here have their own advantages: They are liquid, well established and often have liquid options markets associated with them that allow BKLN from page 9 without taking on too much interest-rate risk,” said IndexUniverse ETF Analyst Gene Koyfman, CFA. “It’s also a much more diversified exposure across different sectors within corporate bonds than investmentgrade, floating-rate securities. Those are still heavily weighted in financials.” Updates from page 3 portfolios that include ETF baskets from powerhouses such as iShares, State Street Global Advisors, Vanguard, WisdomTree and Invesco PowerShares. The initial lineup includes: • Global X Aluminum ETF (NYSE Arca: ALUM) • Global X FTSE Andean 40 ETF (NYSE Arca: AND) • Global X FTSE Argentina 20 ETF (NYSE Arca: ARGT) • Global X Copper Miners ETF (NYSE Arca: COPX) • Global X FTSE Colombia 20 ETF (NYSE Arca: GXG) • Global X SuperDividend ETF (NYSE Arca: SDIV) • Global X Auto ETF (NYSE Arca: VROM) Deutsche To Buy Back 3 Elements ETNs Germany-based Deutsche Bank bought back three Elements ETNs that carry investing legend Benjamin Graham’s name. It didn’t cite a reason, but the three ETNs have gathered few assets. The three ETNs were: • Elements Benjamin Graham Total Market Value Index-Total Return ETN (NYSE Arca: BVT) • Elements Benjamin Graham Large Cap Value Index-Total Return ETN (NYSE Arca: BVL) • Elements Benjamin Graham Small Cap Value Index-Total Return ETN (NYSE Arca: BSC) Holders of the ETNs received a cash payment on Aug. 26 equal to the daily repurchase value on Aug. 23, Deutsche said folks to execute complex trading strategies. But it’s important for investors to realize that the first choice isn’t always the best choice for long-term investors, and that they should evaluate funds by That alone can explain why investors have put more than $158 million into the fund’s coffers in such a short time. BLKN’s rapid asset accumulation has attracted a number of copycat funds: Both First Trust and Guggenheim have filed paperwork with the SEC to introduce their own senior-loan products in a press release. The company, which already uses Invesco PowerShares to market a family of ETFs and ETNs it sponsors in the U.S., also began to roll out its very own ETFs under the DBX brand earlier this year. iShares Launches 2 New Target-Date ETFs iShares rolled out two additional target-date exchange-traded funds, bringing to nine the number of fund-of-funds ETFs that are organized around a specific retirement date. The two new funds, the iShares S&P Target Date 2045 Index Fund (NYSE Arca: TZW) and the iShares S&P Target Date 2050 Index Fund (NYSE Arca: TZY), both come with a net annual expense ratio of 0.32 percent, the company said on its website. Like the rest of the target-date funds in the iShares lineup, the new funds are built out of different ETFs sponsored by the San Francisco-based firm. Target-date funds are designed so that asset allocations shift over time away from equities to make way for more fixed-income holdings as the targeted retirement date nears. New iPath ETN Debuts Dynamic Volatility Play Barclays Bank added to its iPath roster of volatility-linked ETNs with the launch of its first dynamic volatility strategy, designed as a tool for investors to benefit from volatility spikes while managing the roll cost during calm markets. The iPath S&P 500 Dynamic VIX ETN (NYSE Arca: XVZ) is designed to give exposure to the S&P 500 Dynamic VIX Futures TR Index, which allocates between the S&P 500 Short-Term Futures Index Excess Return and the S&P 500 VIX Mid-Term Futures Index several factors, not by which is the biggest game in town. Oftentimes you’ve got to do some more looking under the hood to see which fund really gives you the exposure you’re looking for. to the marketplace. While details are scant, it’s likely that both products will at least attempt to undercut BKLN’s 0.83 percent net expense ratio. For income investors who are willing to take on the credit risk but want to avoid interest rate risk, BKLN is the only game in town. Excess Return by monitoring the steepness of the implied volatility curve. XVZ comes with a yearly fee of 0.95 percent. Van Eck Debuts Mortgage REIT ETF Van Eck Global launched a mortgage REIT ETF that focuses on companies involved with the purchase or service of commercial and residential mortgage loans. The Market Vectors Mortgage REIT Income ETF (NYSE Arca: MORT) will track Van Eck’s proprietary Market Vectors Global Mortgage REITs Index, a rules-based, capitalization-weighted benchmark comprising companies that derive at least 50 percent of their revenue from mortgage REITs. Its net expense ratio is 0.40 percent. The entire 25-stock portfolio is allocated to REITs focused on residential and commercial mortgages, but excludes mortgage finance companies and saving accounts, the company said. Cantor Fitzgerald To Create ETF Arb Business New York-based capital markets investment bank Cantor Fitzgerald is taking steps to build its own ETF arbitrage business. The company has enlisted Dan Segal, formerly of SEG Capital, to head its ETF arbitrage group, and hired a group of trader/market makers that include Joseph La Grasta, Todd Alberico and Kanellas Cafcules, who will focus on domestic ETFs, international/currency ETFs and fixed-income/commodities ETFs, respectively, according to a press release. The move brings Cantor Fitzgerald closer to competing firms like Knight Capital Group, Susquehanna, Wallach-Beth and other ETF market makers and APs. 12 ETFR • October 2011
October 2011 U.S.-Listed ETFs Sorted by Asset Class and Year-to-Date Return Issue No. 131 Fund Name Ticker Exp Ratio Assets 3-Mo YTD 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev U.S. Equity: Total Market WisdomTree Dividend Ex-Financials DTN 0.38 570.3 -5.96 3.98 21.44 25.57 5.54 1.99 21,367 14.63 23.68 3.33 WisdomTree Total Dividend DTD 0.28 170.3 -7.00 1.54 16.32 19.57 1.65 0.30 38,365 13.61 21.90 2.92 iShares S&P 1500 ISI 0.20 300.3 -9.20 -1.89 16.24 26.59 0.75 1.04 32,705 13.78 21.96 1.80 iShares Dow Jones US IYY 0.20 541.6 -9.57 -2.24 16.50 28.25 0.84 1.23 30,947 13.76 22.06 1.79 Schwab U.S. Broad Market SCHB 0.06 742.7 -9.78 -2.27 17.10 - - - 28,506 13.83 - 1.76 Vanguard Total Stock Market VTI 0.07 19,299.0 -9.88 -2.51 17.45 28.87 1.15 1.45 27,072 15.45 22.32 1.92 iShares Russell 3000 IWV 0.20 3,111.0 -9.92 -2.56 16.82 28.29 0.69 1.01 26,264 13.78 22.54 1.76 SPDR Dow Jones Total Market TMW 0.20 177.9 -9.37 -2.72 17.34 27.89 0.88 1.24 29,213 13.76 22.66 1.73 PowerShares Dynamic Market PWC 0.60 150.6 -13.90 -6.23 17.33 18.47 -2.40 -1.31 10,860 12.32 21.00 1.47 U.S. Equity: Total Market Growth iShares Russell 3000 Growth IWZ 0.25 297.2 -8.21 -0.52 17.42 36.83 2.75 3.50 28,191 16.24 21.95 1.23 Fidelity Nasdaq Composite ONEQ 0.30 152.6 -8.57 -2.31 17.79 45.16 3.86 4.15 16,410 16.96 24.71 0.81 U.S. Equity: Total Market Value iShares Russell 3000 Value IWW 0.25 286.4 -11.49 -4.51 15.76 19.66 -1.52 -1.69 24,442 11.89 23.31 2.21 U.S. Equity: Extended Cap Vanguard Extended Market VXF 0.16 1,238.8 -13.33 -4.62 27.62 37.90 2.93 3.36 2,407 17.71 27.08 1.05 PowerShares FTSE RAFI US SmMid PRFZ 0.39 326.2 -14.28 -7.86 28.30 58.64 7.00 - 984 15.70 32.34 0.92 U.S. Equity: Large Cap WisdomTree LargeCap Dividend DLN 0.28 737.9 -6.67 1.88 14.98 17.31 1.11 -0.05 59,604 13.23 21.08 2.67 SPDR DJIA DIA 0.18 9,649.0 -7.35 1.53 13.97 22.72 2.92 2.94 105,342 12.73 19.14 2.67 PowerShares S&P 500 High Quality PIV 0.50 125.2 -7.84 0.26 20.50 12.59 -5.59 -1.20 22,907 15.40 21.46 1.52 ProShares Credit Suisse 130/30 CSM 0.95 112.1 -9.08 -0.94 14.17 - - - 29,883 14.35 - 0.69 Rydex Russell Top 50 XLG 0.20 446.4 -6.57 -1.29 9.32 20.30 -0.32 -0.19 135,205 12.57 19.23 2.03 Vanguard Mega Cap 300 MGC 0.13 322.0 -8.56 -1.79 13.77 25.24 0.24 - 61,430 14.78 21.08 2.02 SPDR S&P 500 SPY 0.09 91,823.7 -8.96 -1.95 15.02 26.31 0.44 0.74 46,971 13.49 21.40 1.99 Schwab U.S. Large-Cap SCHX 0.08 614.3 -9.24 -1.97 15.92 - - - 39,280 13.66 - 1.84 iShares S&P 500 IVV 0.09 26,314.3 -8.95 -1.97 15.11 26.61 0.46 0.75 46,971 13.49 21.44 1.99 Vanguard Large-Cap VV 0.12 2,992.6 -9.24 -2.00 15.93 27.36 0.91 1.30 40,595 15.32 21.77 1.93 iShares Morningstar Large Core JKD 0.20 275.1 -8.50 -2.02 12.68 21.09 -0.34 1.81 60,089 13.74 21.07 1.98 iShares S&P 100 OEF 0.18 2,974.1 -7.87 -2.04 12.48 22.12 -0.25 0.32 99,360 12.71 20.23 2.07 Vanguard S&P 500 VOO 0.06 1,359.5 -9.03 -2.12 - - - - 49,263 15.16 - - iShares Russell 1000 IWB 0.15 6,407.9 -9.46 -2.13 16.02 28.39 0.73 1.01 35,029 13.67 22.01 1.84 Rydex S&P Equal Weight RSP 0.40 2,656.8 -11.38 -2.73 21.39 44.59 3.88 2.49 12,838 14.46 26.59 1.52 First Trust Large Core AlphaDEX FEX 0.70 236.4 -11.09 -2.81 20.67 36.83 2.90 - 13,788 14.00 24.22 0.97 iShares MSCI KLD 400 Social DSI 0.50 142.5 -8.67 -3.11 11.42 30.73 0.48 - 32,900 14.60 21.90 1.47 iShares MSCI USA ESG Select Social KLD 0.50 159.1 -9.36 -3.36 13.89 30.38 0.40 0.89 28,282 15.65 21.83 1.55 RevenueShares Large Cap RWL 0.49 180.1 -10.83 -3.46 16.81 29.86 1.12 - 38,838 12.86 24.60 1.74 PowerShares FTSE RAFI US 1000 PRF 0.39 1,097.8 -11.03 -4.28 19.69 41.74 4.06 1.73 31,884 13.50 26.48 1.93 PowerShares S&P 500 Low Volatility SPLV 0.25 250.1 -3.42 - - - - - 20,011 15.16 - - U.S. Equity: Large Cap Growth PowerShares QQQ QQQ 0.20 22,183.6 -5.45 1.46 19.89 54.67 6.73 7.74 59,894 16.63 24.16 0.76 Rydex S&P 500 Pure Growth RPG 0.35 304.3 -8.71 1.36 26.90 49.33 8.90 6.15 14,289 17.22 25.27 0.41 SPDR 500 Growth SPYG 0.20 188.0 -6.10 1.02 16.25 36.95 3.14 3.89 48,145 15.40 22.09 1.15 iShares Russell Top 200 Growth IWY 0.20 394.7 -5.60 1.01 11.98 - - - 77,052 15.15 - 1.44 iShares S&P 500 Growth IVW 0.18 6,428.9 -6.55 0.90 14.94 31.13 2.94 3.14 48,156 15.40 20.27 1.50 iShares Russell 1000 Growth IWF 0.20 13,114.4 -7.60 -0.01 16.48 36.73 2.83 3.60 37,314 16.09 21.63 1.35 Vanguard Mega Cap 300 Growth MGK 0.13 527.2 -6.58 -0.37 14.53 35.01 2.03 - 52,489 17.54 21.04 1.37 iShares Morningstar Large Growth JKE 0.25 350.1 -5.64 -0.70 12.57 43.94 1.25 2.50 59,083 16.66 22.48 0.80 Vanguard Growth VUG 0.12 5,845.1 -7.67 -0.81 17.23 36.08 2.28 3.77 36,189 18.28 21.73 1.27 Schwab U.S. Large-Cap Growth SCHG 0.13 309.2 -8.87 -1.97 16.85 - - - 30,029 16.04 - 0.80 First Trust Large Growth AlphaDEX FTC 0.70 125.6 -9.88 -2.80 23.62 28.83 1.55 - 14,971 20.11 23.03 0.66 PowerShares Dyn Large Cap Growth PWB 0.60 171.0 -9.58 -2.84 13.74 34.61 -1.59 1.09 43,870 18.99 22.14 0.81 U.S. Equity: Large Cap Value PowerShares Dyn Large Cap Value PWV 0.60 377.6 -9.98 -1.00 13.29 18.60 2.53 2.35 56,053 10.48 19.70 2.44 Schwab U.S. Large-Cap Value SCHV 0.13 242.0 -9.50 -2.15 14.86 - - - 50,915 11.91 - 2.61 First Trust Large Cap Value AlphaDEX FTA 0.70 167.6 -11.98 -2.76 18.69 40.43 3.88 - 13,046 11.13 27.64 1.23 iShares Morningstar Large Value JKF 0.25 211.5 -10.44 -2.82 14.57 11.02 -1.53 -3.05 68,236 10.15 20.20 2.76 Vanguard Mega Cap 300 Value MGV 0.13 352.1 -10.67 -3.28 13.16 15.73 -1.47 - 72,044 12.71 22.15 2.58 Vanguard Value VTV 0.12 5,004.4 -11.13 -3.48 14.57 19.88 -0.66 -1.30 45,655 13.13 22.43 2.58 iShares Russell 1000 Value IWD 0.20 10,396.0 -11.21 -4.12 15.44 19.23 -1.52 -1.69 32,816 11.82 22.92 2.24 iShares Russell Top 200 Value IWX 0.20 152.3 -10.42 -4.29 10.59 - - - 67,460 11.40 - 2.32 iShares S&P 500 Value IVE 0.18 3,818.9 -11.52 -5.00 14.97 20.90 -2.30 -1.95 45,710 11.81 23.63 2.33 SPDR S&P 500 Value Index SPYV 0.20 155.4 -11.59 -5.28 15.53 17.03 -2.12 -1.83 45,735 11.81 21.54 2.49 Yield Data as of 08/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. Assets are net assets in $US millions. 3-Mo is 3-month total return. YTD is year-to-date. 3- and 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-to-earnings ratio. Std Dev is 3-year standard deviation. Yield is 12-month. Includes all U.S.-listed ETFs and ETNs with assets over $100 million. ETFR • October 2011 13
Page 1: Vol. 11 | No. 10 October 2011 Bigge
Page 4 and 5: Going For The Gold By Lara Crigger
Page 6 and 7: DBO T H E P O W E R S H A R E S D B
Page 8 and 9: Based on understanding. Built on ex
Page 10 and 11: Bigger from page 1 cate to a fixed
Page 14 and 15: October 2011 U.S.-Listed ETFs Sorte

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