Investment Banks and ETFs
J.P. Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS), T. Rowe Price (Nasdaq:TROW) are all looking at launching ETFs in the future, and most of these will be actively managed exchange-traded funds, built to generated higher fees than their passively-managed cousins.
ETFs continue to grow as a very popular alternative for investors, especially those who like to put their money into an investment vehicle and let it ride.
The question which remains to be answered is why someone would invest in an actively managed ETF and pay more, when they already essentially can do that with thousands of mutual funds. It makes little sense to me, but maybe investors will think there's more to it than that, and will give them a try.
These types of ETFs will take a long time to take off, and similar to other investments like them, will need to build a track record which proves they can outperform index-based ETFs. That and prove the added fees are worth the price. It'll take years for that to come about, so this is a long term play by all these companies.
Showing posts with label Gold ETF. Show all posts
Showing posts with label Gold ETF. Show all posts
Thursday, March 18, 2010
Thursday, February 11, 2010
Silver or Gold for 2010?
Gold or Silver?
While silver is different from gold in that it isn't only a safety investment but an industrial one as well, under normal conditions it does tend to move in tandem with it, although no always in a straight line.
According to Asian investment firm Hang Seng Financial, they believe silver could very well outperform gold over the next several years by investing in the precious metal physically, through mining companies, ETFs and other means.
I don't think we have to make that distinction so much, as more than likely gold and silver over the next several years will both perform well, with quite possibly gold being the winner in general, although it would depend on how you invest in gold to determine that for each individual investor.
Now long term I think silver could break away form gold when it is largely looked upon for its growing industrial use and demand, but that could take a little while, and the slow (if any) economic recovery over the next several years could easily keep it from doing so.
For 2010, again depending on how you choose to invest in the two precious metals, gold will probably outperform silver, at least in futures trading.
Gold or Silver?
While silver is different from gold in that it isn't only a safety investment but an industrial one as well, under normal conditions it does tend to move in tandem with it, although no always in a straight line.
According to Asian investment firm Hang Seng Financial, they believe silver could very well outperform gold over the next several years by investing in the precious metal physically, through mining companies, ETFs and other means.
I don't think we have to make that distinction so much, as more than likely gold and silver over the next several years will both perform well, with quite possibly gold being the winner in general, although it would depend on how you invest in gold to determine that for each individual investor.
Now long term I think silver could break away form gold when it is largely looked upon for its growing industrial use and demand, but that could take a little while, and the slow (if any) economic recovery over the next several years could easily keep it from doing so.
For 2010, again depending on how you choose to invest in the two precious metals, gold will probably outperform silver, at least in futures trading.
Gold or Silver?
Wednesday, January 6, 2010
Commodity ETFs Double Inflows in 2009
Commodity ETFs
In 2009 commodity ETFs enjoyed a solid year, as the capital flowing into the exchange-traded funds were over double what they brought in in 2008, mirroring the growth of ETFs in general.
What was unusual in the commodity ETF sector, was that a large number of the commodity ETFs didn't perform that well, and in many cases lost huge amounts of money.
Even so, that isn't deterring investors from moving significant amounts of capital into ETFs, and 2010 looks like it'll be another banner year for them.
In 2008, commodity ETFs tookin about $13.4 billion, while in 2009 it exploded to $30.1 billion. Most of that was invested in ETFs which bet prices for agriculture, energy and metal would rise during the year.
One of the ongoing winners for ETFs was the largest commodity ETF and gold fund, SPDR Gold Trust, which continues to take advantage of increasing prices of gold, and enjoyed a 24 percent return in 2009. They should enjoy good returns for years into the future, although there will be obvious times of pullback and corrections.
To me tracking ETFs will always be the best way to invest in them, while managed ETFs not only generate more fees, but in many cases underperform because of costs, payment of management, and not really mirroring the market like an low-managed ETF will do.
Commodity ETFs
In 2009 commodity ETFs enjoyed a solid year, as the capital flowing into the exchange-traded funds were over double what they brought in in 2008, mirroring the growth of ETFs in general.
What was unusual in the commodity ETF sector, was that a large number of the commodity ETFs didn't perform that well, and in many cases lost huge amounts of money.
Even so, that isn't deterring investors from moving significant amounts of capital into ETFs, and 2010 looks like it'll be another banner year for them.
In 2008, commodity ETFs tookin about $13.4 billion, while in 2009 it exploded to $30.1 billion. Most of that was invested in ETFs which bet prices for agriculture, energy and metal would rise during the year.
One of the ongoing winners for ETFs was the largest commodity ETF and gold fund, SPDR Gold Trust, which continues to take advantage of increasing prices of gold, and enjoyed a 24 percent return in 2009. They should enjoy good returns for years into the future, although there will be obvious times of pullback and corrections.
To me tracking ETFs will always be the best way to invest in them, while managed ETFs not only generate more fees, but in many cases underperform because of costs, payment of management, and not really mirroring the market like an low-managed ETF will do.
Commodity ETFs
Monday, January 4, 2010
Investing ETF Gold Funds - 'SPDR Gold Shares'
Investing ETF Gold Funds - 'SPDR Gold Shares'
Gold will continue to be a force for some time ahead, no matter if it gets hit by a temporary surge in the value of the U.S. dollar or not. And even if it does, it won't matter, as the greenback won't be able to hold strong for a very long period of time if it happens at all, so gold will perform stongly for years into the future, even with temporary corrections in the midst of its continual upward price movement.
With that in mind, a great way to invest in gold can be through an ETF gold fund, and one of the fastest growing in the world - not with just ETF gold funds, but all ETF funds in existence - is 'SPDR Gold Shares.
An ETF gold index fund is listed on an exchange just like a stock, and so in easy to invest in, and relatively inexpensive as well, as they are not management intensive, and other than storage costs, fairly free of other fees.
Along with trading on an American exchange, SPDR Gold Shares also trades on the Tokyo Stock Exchange, Hong Kong Stock Exchange and the Singapore Stock Exchange. That exposes it to a variety of markets around the world.
At this time, the SPDR Gold Shares fund stores and underlying 1,133 metric tons of gold in the London vaults of HSBC Bank USA. That amounts to about 36,300,000 ounces with a value of close to $40.2 billion at today's gold market price.
With very few exceptions, SPDR Gold Shares of course primarily holds gold. There are few times when it holds cash as well, but that's very temporary until new buying opportunities arise.
Investing in an ETF gold index fund like SPDR Gold Shares is an easy way for investors to participate in the ongoing bull gold market, and with the ease of trading gold like a security, it eliminates many of the barriers many investors face when thinking of investing in the precious metal.
Investing ETF Gold Funds - 'SPDR Gold Shares'
Gold will continue to be a force for some time ahead, no matter if it gets hit by a temporary surge in the value of the U.S. dollar or not. And even if it does, it won't matter, as the greenback won't be able to hold strong for a very long period of time if it happens at all, so gold will perform stongly for years into the future, even with temporary corrections in the midst of its continual upward price movement.
With that in mind, a great way to invest in gold can be through an ETF gold fund, and one of the fastest growing in the world - not with just ETF gold funds, but all ETF funds in existence - is 'SPDR Gold Shares.
An ETF gold index fund is listed on an exchange just like a stock, and so in easy to invest in, and relatively inexpensive as well, as they are not management intensive, and other than storage costs, fairly free of other fees.
Along with trading on an American exchange, SPDR Gold Shares also trades on the Tokyo Stock Exchange, Hong Kong Stock Exchange and the Singapore Stock Exchange. That exposes it to a variety of markets around the world.
At this time, the SPDR Gold Shares fund stores and underlying 1,133 metric tons of gold in the London vaults of HSBC Bank USA. That amounts to about 36,300,000 ounces with a value of close to $40.2 billion at today's gold market price.
With very few exceptions, SPDR Gold Shares of course primarily holds gold. There are few times when it holds cash as well, but that's very temporary until new buying opportunities arise.
Investing in an ETF gold index fund like SPDR Gold Shares is an easy way for investors to participate in the ongoing bull gold market, and with the ease of trading gold like a security, it eliminates many of the barriers many investors face when thinking of investing in the precious metal.
Investing ETF Gold Funds - 'SPDR Gold Shares'
Major Gold ETFs Hold $16.9 Billion
Gold ETF Performance 2009
The gold holdings fo the major gold ETFs have approximately an aggregate amount of gold worth $16.9 billion net on a daily basis, according to the latest figures for 2009. Those aren't the final figures for 2009, as it only takes us up to mid-December.
Overall the key gold ETFs held close to $61.3 billion, a major increase of 84 percent year over year. That means an additional 546 tons of gold was added to the reserves of these gold funds in 2009.
Price per ounce for gold during that period rose by $213 an ounce, making it a highly profitable year for most.
Net daily flows in the funds differ from the value of the gold held by the funds because it fluxuates on a continuous basis.
The value of gold in the funds increased by about 65 percent over the net value of the money put into them.
Gold ETF Performance 2009
The gold holdings fo the major gold ETFs have approximately an aggregate amount of gold worth $16.9 billion net on a daily basis, according to the latest figures for 2009. Those aren't the final figures for 2009, as it only takes us up to mid-December.
Overall the key gold ETFs held close to $61.3 billion, a major increase of 84 percent year over year. That means an additional 546 tons of gold was added to the reserves of these gold funds in 2009.
Price per ounce for gold during that period rose by $213 an ounce, making it a highly profitable year for most.
Net daily flows in the funds differ from the value of the gold held by the funds because it fluxuates on a continuous basis.
The value of gold in the funds increased by about 65 percent over the net value of the money put into them.
Gold ETF Performance 2009
Monday, February 16, 2009
Successful Gold Investing in 2009
Most of us know that gold investing is going to be not only a place to safely put our money in 2009, but also a place where we can make significant returns on that money. There are a lot of ways to invest in gold, like gold stocks of mining and gold production companies, companies selling gold coins, gold futures and gold ETFs, among other ways. Here's a few ways to invest in gold in 2009 that should do very well.
Gold investors should be able to put their money into any well run gold mining producer this year and do well, along with investing in gold futures, which will continue to run up. Other gold investments set to do well will be gold ETFs, which with the larger companies are saying they're having no problem acquiring the needed gold to line up with investors' demand.
Regardless of whether or not gold goes up or down from here, there is a great opportunity to capitalize on such movements of price by using the right trading tools. There are many trading tools available to trade gold such as gold ETFs (exchange traded funds), mining stocks, gold futures and options. But perhaps the most significant way to monetize gold is by using the incredible leverage available from a forex trading platform.
Many forex (foreign exchange) brokers empower clients to trade gold with 100:1
leverage. The 100:1 leverage system follows easy to understand strategy. For every $100 one risks, the trader will get the buying power for trading gold worth $10,000 dollars. There are other things that can be traded too on this platform including silver, crude oil and just about every major currency on the planet. Standard trading accounts which offer the ability to trade gold forex can be opened extremely fast online with a very low investment of several hundred dollars, often with the simple use a credit card for making an opening deposit. For those just starting out there are also forex practice accounts which can be opened without risking any of your money.
A practice account is a great way to get a feel for the forex platform and enable you to trade in very much the same way as a real cash account without facing any risk, until you understand how it works.
What remains to be determined is how long it will take, not whether the time arrives. But either way, gold is going to break out again this year, and most analysts are forming a consensus that gold prices will push past the $1,000 barrier before 2009 is finished. And I think they're right.
Gold futures will also remain a key way to successful enter the gold market, as they don't depend on the management ability of a company or how much debt they have incurred, among other factors. Futures just measure gold and its demand itself. That makes it simple and easy to watch to see which way the market is moving. How investors measure safety and inflation is a big part of how the gold futures market performs.
Buying gold coins is one of the most practical ways to own physical gold, as gold bars are more difficult to transport and keep out of view. If owning physical gold is part of your gold investment strategy, I would buy gold coins rather than any other type of physical gold.
There's no doubt gold investing will be one of the main investing success stories of 2009.
Gold investors should be able to put their money into any well run gold mining producer this year and do well, along with investing in gold futures, which will continue to run up. Other gold investments set to do well will be gold ETFs, which with the larger companies are saying they're having no problem acquiring the needed gold to line up with investors' demand.
Regardless of whether or not gold goes up or down from here, there is a great opportunity to capitalize on such movements of price by using the right trading tools. There are many trading tools available to trade gold such as gold ETFs (exchange traded funds), mining stocks, gold futures and options. But perhaps the most significant way to monetize gold is by using the incredible leverage available from a forex trading platform.
Many forex (foreign exchange) brokers empower clients to trade gold with 100:1
leverage. The 100:1 leverage system follows easy to understand strategy. For every $100 one risks, the trader will get the buying power for trading gold worth $10,000 dollars. There are other things that can be traded too on this platform including silver, crude oil and just about every major currency on the planet. Standard trading accounts which offer the ability to trade gold forex can be opened extremely fast online with a very low investment of several hundred dollars, often with the simple use a credit card for making an opening deposit. For those just starting out there are also forex practice accounts which can be opened without risking any of your money.
A practice account is a great way to get a feel for the forex platform and enable you to trade in very much the same way as a real cash account without facing any risk, until you understand how it works.
What remains to be determined is how long it will take, not whether the time arrives. But either way, gold is going to break out again this year, and most analysts are forming a consensus that gold prices will push past the $1,000 barrier before 2009 is finished. And I think they're right.
Gold futures will also remain a key way to successful enter the gold market, as they don't depend on the management ability of a company or how much debt they have incurred, among other factors. Futures just measure gold and its demand itself. That makes it simple and easy to watch to see which way the market is moving. How investors measure safety and inflation is a big part of how the gold futures market performs.
Buying gold coins is one of the most practical ways to own physical gold, as gold bars are more difficult to transport and keep out of view. If owning physical gold is part of your gold investment strategy, I would buy gold coins rather than any other type of physical gold.
There's no doubt gold investing will be one of the main investing success stories of 2009.
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