It’s true that almost every mutual fund company offers some sort of index fund based on the S&P 500 benchmark, often attracting a fair share of the pie for index products. But the mutual fund industry is a multitrillion-dollar industry with plenty of room for products that appear to be very similar.
When the American Stock Exchange released its year 2000 statistics, it gleefully noted that the amount of money invested in ETFs, including HOLDRS, had more than doubled to $70.3 billion in invested assets, up from $35.9 billion at the end of 1999. But upon closer inspection of the 2000 year-end data, a skewed picture emerges.
Nuveen Investments and Barclays are vying with one another to be the first to offer an ETF bond product in the US. Barclays Canada rolled out a version of a bond ETF last year, but that product was not based on an index and was geared almost exclusively toward retail investors.
Despite the bruising the Nasdaq took last year, the market system broke records for volume and dollar value of shares traded.
The world’s largest stock exchange has finally thrown its hat into the ring by launching its first exchange-traded fund.
“ The SEC will approve fixed income ETFs well before active ETFs”
Exchange-traded funds are experiencing a breakthrough year this year, with numerous products being created and older products reaching a wider audience. But as the year draws to an end, many new investors in these products are wondering just how tax efficient their investments are.
While most trading advisors have been slow to embrace the use of exchange-traded funds in their trading routines, trading advisor Hanseatic Corp in Albuquerque has been using them and recommending them to investors for more than three years, according to principal Katherine Burr.
Exchange-traded funds have caught on fast, expanding from $33 billion in December 1999 in assets on the American Stock Exchange to more than $50 billion in September this year.