Options are financial contracts that give their buyer the right to buy or sell a stock at a predetermined price. Options are also known as derivatives, as their prices are a function of their underlying instruments.
According to exchange figures, ETFs now account for about 70% of all equity option volume. More people trade options on ETFs than they trade options on individual stocks. Options are used by investors to not only hedge a portfolio but to speculate on future price movements.
Plus, more closures are on the horizon.
Plus, iShares added an emerging market bond ETF to its lineup at the end of the week.
Six ETFs launched and six closures were announced.
After a very slow start, this week was a rush of activity, including 21 launches.
Meanwhile, closures are off to a strong start, with 26 from Invesco alone.
FactSet's Elisabeth Kashner and Lois Gregson discuss some of last year's key trends in the ETF industry.
Volatility strategy may be in order as U.S. default worries rise.
Plus, FT Cboe Vest and newcomer Panagram launched funds last week.
The new funds include an ETF tracking high quality collateralized loan obligations from BlackRock.
