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John Spence

Retail Investor Perception of Exchange-Traded Funds

by John Spence
Friday, February 23, 2001

The biggest players in exchange-traded funds, Barclays Global Investors (BGI) and State Street Global Advisors (SSgA), truly believe they've pioneered a tool that's perfect for index investors - low management fees, protection from taxes and turnover, and ...Read More

Article Library

  • Will McClatchy

    ETF Net Asset Value Not Always Best Indicator of Short-Term Value

    by Will McClatchy — Thursday, February 22, 2001

    Initially, critics of exchange-traded funds (ETFs) decried their trading at a significant premium/discount to net asset value (NAV), the underlying stock values they represent. This is a problem that regularly plagues closed-end mutual funds, where prices ...Read More

  • Will McClatchy

    ETF Premium/Discount Misconceptions

    by Will McClatchy — Wednesday, February 21, 2001

    Initially, critics of exchange-traded funds (ETFs) decried their trading at a significant premium/discount to net asset value (NAV), the underlying stock values they represent. This is a problem that regularly plagues closed-end mutual funds, where prices ...Read More

  • New Canadian ETFs

    by Dan Hallett — Tuesday, February 20, 2001

    Yesterday, Barclays Global Investors unveiled the finishing touches on a much-anticipated line of exchange-traded funds (ETFs) for Canadian investors. ...Read More

  • Buying Value In ETFs Amidst a Beaten-Down Technology Sector

    by Max Issacman — Friday, February 16, 2001

    Yes, the Nasdaq market is down, but here's the multi-trillion dollar question: Is the market down enough? Since its high early in 2000, the Nasdaq 100 Index is down about 50%. Is this correction enough justification for the cuts in sales and estimated ...Read More

  • The Next Mutual Fund R(Evolution)?

    by Gavin Quill — Monday, February 12, 2001

    Too often financial innovations that affect the mutual fund industry are portrayed in a black and white fashion. They are either viewed as just a curious sideshow, or else they are quickly proclaimed to be a fundamental challenge to the health, viability ...Read More

  • John Spence

    Dow Jones and FTSE Launch Global Sector Indexes

    by John Spence — Monday, February 12, 2001

    The trend toward global sector investing is picking up steam. Dow Jones Indexes yesterday launched the Dow Jones Sector Titans Indexes, a new set of indexes comprised of global blue-chip companies. The sector indexes in the new family are listed in the ...Read More

  • Larry Swedroe

    Market Trends and Investor Behavior

    by Larry Swedroe — Friday, February 9, 2001

    It's quiz time. I have devised the following test of "investment memory." The period in question is the 30-year period 1970-1999. As you take this little quiz, keep in mind that the last 15 years have probably been among the greatest periods (if not the ...Read More

  • John Spence

    AMEX and Euronext To Cross-List ETFs

    by John Spence — Thursday, February 8, 2001

    Well, ETF trading is going transatlantic. The American Stock Exchange (AMEX) and Euronext have announced plans to cross-list and trade U.S. and international exchange-traded funds (ETFs). Effectively, ETFs that trade on Euronext will soon be available on ...Read More

  • John Spence

    Wanna Bet?

    by John Spence — Thursday, February 1, 2001

    You see the craziest stuff coming over all these Internet wire services we have today, but this one is truly bizarre - mostly because it's a case of fantasy mimicking reality just a little too closely. ...Read More

  • John Spence

    Flurry of Global ETF Launches in Early 2001

    by John Spence — Tuesday, January 30, 2001

    2000 was a busy year for exchange-traded fund (ETF) launches and asset growth. According to the American Stock Exchange (AMEX), assets in ETFs listed on the exchange reached $70.3 billion, nearly doubling the 1999 year-end total of $35.9 billion. Also, ...Read More

  • IndexFunds Speaks with Michael Petronella

    by Staff — Monday, January 29, 2001

    Michael Petronella is Managing Director at Dow Jones Indexes. He recently sat down with's, Site Editor Jim Wiandt to discuss the history of Dow Jones indexes, the free-float debate, and how Dow Jones plans to construct international country ...Read More

  • Dunn's Law Review: The Life and Times of "Core and Explore"

    by William Bernstein — Monday, January 29, 2001

    One of the silliest bits of conventional financial wisdom is the notion that while indexing works well with the efficient U.S. large-cap market, there is benefit from active management in the "less efficient" small-cap and foreign arenas. In fact, Charles ...Read More

  • New HOLDRS Allow Investment in Europe's Largest Companies

    by Staff — Thursday, January 25, 2001

    Europe 2001 HOLDRS began trading on the American Stock Exchange (AMEX) on January 18 under the symbol EKH. With the new HOLDRS, which stands for Holding Company Depository Receipts, investors can own interest in 50 of the largest companies in Europe in ...Read More

  • ETFs: The Growth Story of 2000

    by Gavin Quill — Wednesday, January 24, 2001

    If S&P 500 index funds were the most notable success story from 1996-1999 and technology funds were the talk of the industry in 1998-1999, then their headline-grabbing successors in 2000 were probably index-based exchange-traded funds. After seven years ...Read More

  • Barclays to Launch Nasdaq Biotech Index ETF

    by Staff — Tuesday, January 23, 2001

    Barclays Global Investors (BGI) is planning to launch an iShares Nasdaq Biotechnology Index Fund, an exchange-traded fund (ETF) that will hold all 76 securities in an index that contains companies primarily engaged in biomedical research to develop new ...Read More

  • SEC Mandates Disclosure of Mutual Fund After-Tax Returns

    by Staff — Monday, January 22, 2001

    The Securities and Exchange Commission (SEC) adopted a rule on Friday that requires fund companies to disclose after-tax returns for 1-, 5-, and 10-year periods in fund prospectuses. The SEC first proposed the new rule in June 2000. ...Read More

  • Comparing Mutual Funds to Different Benchmarks

    by Staff — Friday, January 19, 2001

    What a difference two years can make. In 1999, only 33% of mutual funds were able to beat Standard & Poor's (S&P) 500. In the year 2000, over 72% of all mutual funds managed that task. Nearly half of all funds managed to outgain the S&P 600 Small Cap ...Read More

  • Vanguard Approval in Japan

    by Staff — Wednesday, January 17, 2001

    Vanguard Investments Japan, the Japanese arm of The Vanguard Group, announced that it has been approved for membership in the Japan Securities Dealers Association. ...Read More

  • John Spence

    MSCI Discusses GICS Shift, Expanding ETF Market

    by John Spence — Wednesday, January 17, 2001

    Morgan Stanley Capital International (MSCI) and Standard and Poor's (S&P) recently launched a new index classification system called the Global Industry Classification Standard (GICS). The new system is designed to make investment research and management ...Read More

  • The Price/Earnings (p/e) Debate

    by Staff — Monday, January 15, 2001

    A war has been raging lately on our discussion boards. The debate centers around p/e ratios, and how they are calculated by Morningstar. The issue is important because many investors and financial professionals use the numbers when making decisions. ...Read More

  • John Spence

    S&P Completes Reclassification of U.S. Indexes

    by John Spence — Tuesday, January 9, 2001

    Standard and Poor's (S&P) announced that it has finalized the new classification of its U.S. indexes, shifting to the Global Industry Classification Standard (GICS). The new system was developed by S&P and Morgan Stanley Capital International (MSCI) with ...Read More

  • E*TRADE Launches Two New Index Funds

    by Staff — Monday, January 8, 2001

    E*TRADE today announced the launch of two new no-load index funds: the E*TRADE Financial Sector Index Fund and the E*TRADE Russell 2000 Index Fund. ...Read More

  • Is There Still Value in the Book-to-Market Ratio?

    by James Davis — Monday, January 1, 2001

    Both of these variables produce more return dispersion than E/P and CF/P, even during the period when BtM is supposed to be less relevant (Figure 5). Unfortunately for investors in value stocks, the return difference went the wrong way during the most ...Read More

  • John Spence

    Enhanced Indexing

    by John Spence — Thursday, December 21, 2000

    There wasn't a lot of emphasis placed on enhanced indexing during the bull market of the 1990s when investors were fed a steady diet of consecutive and unprecedented high yearly returns. However, with the recent stock sell-off, squeezing out those extra ...Read More

  • John Spence

    Do Indexes Influence Markets?

    by John Spence — Wednesday, December 20, 2000

    There is mounting evidence that indexes, which theoretically should serve as benchmarks for economic sectors, may actually exert influence on the markets they are designed to track. A growing number of studies are examining whether indexes create or ...Read More

  • Trend Toward Global ETFs Continues

    by Staff — Tuesday, December 12, 2000

    Barclays Global Investors (BGI) announced its plans to launch a UK-based exchange-traded fund (ETF) that tracks the new FTSE ExUK 100 Index. The FTSE ExUK 100 Index will be calculated from December 14, and a full list of the constituent companies will be ...Read More

  • Vanguard Releases Latest Cap Gains Estimates

    by Staff — Monday, December 11, 2000

    The Vanguard Group released updated estimates of year-end capital gains distributions for its equity and balanced funds. The estimates are updated through the end of November 2000. ...Read More

  • John Spence

    MSCI to Adjust Indexes for Free-Float

    by John Spence — Monday, December 11, 2000

    Morgan Stanley Capital International (MSCI) formally announced yesterday that it will adjust all of its equity indexes for free-float, a decision that will most likely trigger billions of dollars in stock turnover globally. ...Read More

  • iShares S&P Global 100 First ETF to List on NYSE

    by Staff — Friday, December 8, 2000

    Trading commenced today on the iShares S&P Global 100 exchange-traded fund (ETF). The Global 100 (ticker symbol: IOO) is the first ETF to be listed on the New York Stock Exchange (NYSE). ...Read More

  • Know Your Prospectus

    by Alfred Scillitani — Wednesday, November 29, 2000

    I have to read a fund's "What?" before investing? A mutual fund company must inform you to read their Prospectus before investing, but what is a prospectus? ...Read More

  • From our Canadian Bureau: BGI Canada Launches First Bond ETFs

    by Staff — Wednesday, November 22, 2000

    Two new bond exchange-traded funds (ETFs) managed by Barclays Global Investors Canada began trading today on the Toronto Stock Exchange (TSE). The two new Canadian ETFs are the iUnits Government of Canada 5-Year Bond Fund (iG5) and the iUnits Government ...Read More

  • Jim Wiandt

    World's First Active ETFs Begin Trading in Germany

    by Jim Wiandt — Tuesday, November 21, 2000

    In a development that would be unthinkable in the United States, the world's first actively-managed ETFs began trading in Germany just three months after DWS Investment filed for approval. Peering through a window that might shed some light on how such ...Read More

  • John Spence

    SSB Citi Launches New Family of Index Funds

    by John Spence — Monday, November 13, 2000

    SSB Citi Asset Management Group, the money management division of Citigroup, announced the launch of 11 new index funds. The new offerings are the first no-load index funds ever to be introduced by SSB Citi, which has two other U.S. mutual fund brands - ...Read More

  • Retiring Early Using Indexing Strategies

    by Larry Putnam — Thursday, November 9, 2000

    On a recent rainy day perfect for book browsing, I found myself cruising the investing and personal finance section of my favorite super-sized 50,000-title Barnes and Noble. Years ago, I developed a rule to help my search for good investment books: ignore ...Read More

  • From our Canadian Bureau: A Raise for Your Money Manager?

    by Dan Hallett — Thursday, November 9, 2000

    I bet investors take most pieces of mail regarding mutual fund unitholder votes and file them under "G" for garbage. Frankly, oftentimes the issue being voted upon has no material impact on unitholders. However, November 14, 2000 marks an important day ...Read More

  • USAA Investments Launches 3 New Index Funds

    by Staff — Wednesday, November 8, 2000

    "The popularity of the USAA S&P 500 Index Fund demonstrates that there's a place in a balanced portfolio for indexing," said Michael J.C. Roth, President and CEO of USAA Investment Management Company. "The addition of these three index funds will ...Read More

  • Borsa Italiana Paves the Way for ETFs

    by Staff — Wednesday, November 8, 2000

    Borsa Italiana, the Milan-based stock exchange, announced that it is in at least the planning stages of a move to alter its own regulations to permit the launch of Italy's first exchange-traded funds (ETFs). ...Read More

  • John Spence

    FRC Study Examines Future of ETFs

    by John Spence — Monday, November 6, 2000

    With large financial institutions launching an explosion of exchange-traded funds (ETFs) around the globe, some have questioned whether these investment products represent a threat to traditional mutual funds. Can ETFs exact a fundamental change upon the ...Read More

  • Jim Wiandt

    S&P Launches Frontal Attack on Vanguard Vipers

    by Jim Wiandt — Friday, November 3, 2000

    Taking its lawsuit against Vanguard to another level, Standard & Poor's requested that the Securities and Exchange Commission (SEC) hold a public hearing on Vanguard's application to launch its exchange-traded funds (ETFs). ...Read More

  • John Spence

    Benefits of ETFs Debated at Asset Allocation Seminar

    by John Spence — Wednesday, November 1, 2000

    At the recent seminar in San Francisco entitled "Asset Allocation: Theories vs. Realities," representatives from the industry outlined the benefits of using exchanged-traded funds (ETFs) in portfolio management strategies. Many of the institutional ...Read More

  • First ETF Launched on Chicago Board Options Exchange

    by Staff — Tuesday, October 31, 2000

    The newly-created iShares S&P 100 Index Fund began trading on the Chicago Board Options Exchange (CBOE) on 10/27/2000. The exchange-traded fund (ETF) will be managed by Barclays Global Investors (BGI) and will trade under the CBOE symbol OEF. The iShares ...Read More

  • New ETF to be Launched in Japan

    by Staff — Thursday, October 26, 2000

    The Osaka Securities Exchange (OSE) today inked a license agreement and memorandum of understanding with Dow Jones. The agreement covers the listing of an exchange-traded fund (ETF) based on the Dow Jones Industrial Average. Additionally, the arrangement ...Read More

  • John Spence

    Salomon Releases ETF Premium/Discount Study

    by John Spence — Monday, October 23, 2000

    Last Wednesday, 10/18/2000, the Salomon Smith Barney Closed-End Funds Research Group released a supplement to its larger quarterly report, "Fundamentals for Exchange-Traded Funds." As part of the supplement, Salomon analysts conducted a premium/discount ...Read More

  • John Spence

    Vanguard Releases Expense Ratios for Admiral Shares

    by John Spence — Friday, October 20, 2000

    On Tuesday, 10/17/2000, the Vanguard Group announced the expense ratios for its new class of Admiral Shares to be released in November. Initially, Vanguard will offer Admiral Shares on seven of its domestic index funds, and has plans to offer Admiral ...Read More