On the Comex division of the New York Mercantile Exchange, gold futures for June delivery settled at $1,280.00 an ounce, down $3.80 or 0.3% from Monday’s close to a 7-week low. Gold was also hurt by fresh outflows from exchange traded funds backed by physical gold. Net redemptions equaled 6.4 tonnes on Monday, the biggest daily reduction since December 23. Last week was the second week in a row of outflows from all gold ETFs taking total bullion allocated to investors by funds down to 1,759.4 tonnes. Gold bullion holdings in global ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012, but last year saw net redemptions of 800 tonnes.
Vanguard Beats BlackRock Winning Most ETF Money In First Quarter
The chart below shows the one year price performance of EWG, versus its 200 day moving average: Looking at the chart above, EWG’s low point in its 52 week range is $23.66 per share, with $31.93 as the 52 week high point – that compares with a last trade of $31.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average . Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Federal Reserve, listens to a question during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on March 19, 2014. Higgins said his firm favors speculative-grade corporate bonds and has been selling Treasuries. Bond Exodus The redemptions in March have all but erased the net inflows U.S. government bond ETFs garnered in the first two months of the year, when an economic slowdown in China , crises from Thailand to Ukraine and questions over the strength of the U.S. economy caused investors to seek out the safest assets .
Lead by the Vanguard FTSE Europe ETF (NYSEArca: VGK ), six Vanguard ETFs rank among the top-10 asset gatherers http://www.etftradingsignals.com this year. With VGK in the first spot, the top-four ETFs in terms of 2014 inflows are all Vanguard products. Last year, Vanguard pulled in nearly a third of every dollar investors allocated to U.S. ETFs.
Bond Market ETF ( AGG ). I found that for being a “total” bond market fund, AGG has no exposure to high-yield corporate bonds, high-yield municipal bonds, and only a miniscule allocation to investment grade municipal bonds, therefore I included them in my proposed holdings below. Proposed Holdings: Investment Grade Corporate Bonds: 30% Mortgage Backed Bonds: 20% High Yield Corporate Bonds: 20% Investment Grade Municipal Bonds: 15% High Yield Municipal Bonds: 10% Misc Bonds i.e. I choose SVXY as the underlying holding because, as the graph below shows, the VIX is in contango (black line above zero on the graph) the majority of the time. This means the front month VIX futures contracts are more expensive than the current month, that increases costs and eats away at returns. If you look at a long-term chart of the iPath S&P 500 VIX Short-Term Futures ETN ( VXX ), you can clearly see the erosion in returns created by the roll cost.
Vanguards Philosophy Founded by Bogle in 1975, Vanguard became the first firm to make index funds available to retail investors. By spreading money across the entire stock market at low cost, Bogle argued that investors could beat the vast majority of stock-picking fund managers. Vanguards philosophy has helped it attract assets and catapult it into the largest mutual-fund manager, running five of the 10 biggest U.S. mutual funds. Vanguard started pushing into ETFs more than a decade ago as it sought to bring that same idea to the fastest-growing area of the asset management industry.