Big Differences In Retail ETFs

As we wrap up a two-day shopping spree called Amazon Prime Day(s), all eyes are on Amazon stock prices, now up 33% in 2019, nearing one-year highs. The big sales event at Amazon came in the same week another strong round of retail sales numbers hit the market, showing that consumers are spending their discretionary money. And consumer spending is a key driver of economic growth. Accessing Amazon—and more broadly, the retail segment—is easy through ETFs. But choices in this segment are delivering very different results. There are 223 ETFs…

Why Small Cap ETFs Poised To Pop

U.S. small cap ETFs have delivered a good run in 2019, but on a relative basis, they continue to underperform large caps this year even as the market makes new highs. This could be about to change, some say. The recent relative weakness in small caps really kicked off in the last quarter of 2018 when the market took a downturn. Small-cap stocks are very sensitive to the domestic growth story, and concerns of a slowdown in the U.S. economy really took hold late last year, weighing on the segment.…

Battle Of Cloud Computing ETFs

The First Trust Cloud Computing ETF (SKYY) raked in $1.1 billion in fresh net assets in the third week of June—a huge sum for an otherwise narrowly focused ETF, and one that landed it among that week’s biggest creations. The fund, however, went on to face just over $1 billion in net outflows this past week—a complete unwind of the previous week’s trade, bringing year-to-date total creations to a modest net of $260 million.     These big swings in flows, while dramatic, don’t change the fact that, as far…

Why Low Vol ETFs See Big Demand

Low volatility ETFs aren’t designed to capture outperformance relative to the broader market. After all, low volatility isn’t the type of factor that rewards you for taking higher risk—quite the contrary. But this year, low-vol U.S. equity ETFs are actually doing just that—delivering outsized returns relative to the S&P 500—and in the process, attracting a lot of assets. There are 27 low vol ETFs in the market today, but when it comes to U.S. large cap equities, the low vol battle centers on two popular funds: the iShares Edge MSCI…

How To Access M&A Deals In ETFs

Merger and acquisition deals are at fever pitch this year. This week alone, we saw three big deals announced: Raytheon (RTN) to merge with United Technologies (UTX); Salesforce (CRM) to buy Tableau Software (DATA); and Merck (MRK) to buy Tilos Therapeutics. An ETF investor or trader can access these deals—playing them somehow—in two easy ways. The first is by looking into merger arbitrage ETFs such as the IQ Merger Arbitrage ETF (MNA). MNA is a portfolio that owns the targets of acquisitions. The idea behind this strategy is to capitalize…