Pages Menu
TwitterRssFacebook

Posted by on Jan 21, 2016 in AdvisorShares, ETF Education

ETF Mechanics and Liquidity

ETF Mechanics and Liquidity

By Rob Parker, CFA, Director of Capital Markets   When a stock or a bond is traded, the traded price is the value of the security.  This is due to the fact that stocks and bonds are non-derivative securities.  Their value is driven solely by supply and demand at the moment of the trade.1  The supply of the security is fixed.2 There exists a whole array of derivatives in the marketplace, such as futures, options, and exchange-traded products (ETPs).  One such ETP of note is a closed-end fund (CEF).  In this structure, the issuer creates a static amount of shares that are traded on an exchange.  This unique structure can lead to differences between price and value (discount or premium).  Because CEFs are derivatives, their value is easily calculated by summing the values of the underlying holdings.  However, they are subject to their own demand paired with an inelastic supply. Moving further along the spectrum are exchange-traded funds (ETFs).  Like CEFs, the value of an ETF is easily quantified. ...

Read More

Posted by on Jul 27, 2015 in AdvisorShares, ETF Strategist, Market Insight

AdvisorShares Weekly Market Review – Week Ending 7/24/2015

AdvisorShares Weekly Market Review – Week Ending 7/24/2015

Markets Wilt In Summer Heat Macro Domestic equities had a down week despite some of the more sensational news headlines having become less sensational perhaps bringing earnings and inter-market dynamics back to the forefront as influencers of price. The news wasn’t horrible; sure a couple of earnings misses but there were some home runs as well yet markets sort of just eroded or maybe wilted is a better word. The Dow Jones Industrial Average fell 2.85% weighed down by everyone’s favorite tablet company, the S&P 500 dropped 2.20%, the NASDAQ gave up 2.31% and the Russell 2000 endured a 3.18% decline. Looking at foreign equities Europe was down and the eastern markets were mixed. The FTSE 100 fell 2.88%, the CAC 40 was down 1.28% and Germany gave up 2.79%. On the downside, Australia and the Hang Seng were down 1.83% and 1.13% respectively while the Nikkei was up 3.87% and Shanghai Composite had another positive week gaining 2.87%, which was soon forgotten as that index fell more than...

Read More

Posted by on Dec 29, 2014 in AdvisorShares, ETF Strategist, Market Insight

AdvisorShares Weekly Market Review – Week Ending 12/26/2014

AdvisorShares Weekly Market Review – Week Ending 12/26/2014

Highlights of the Prior Week – Christmas Week: Not Much Happened Macro Last week’s Market Update marveled at how many different things occurred (Cuba is on its way to being free!) even using the word epic in our description of events. Fast forward to Christmas week in which very little happened. There were a couple of milestones reached though as the Dow Jones Industrial Average closed above 18,000 and the assets held in ETFs crossed the $2 trillion mark. US Equities were higher last week on an expectedly light holiday volume. The Dow Jones Industrial Average gained 1.39%, the S&P 500 was up 0.86%, the NASDAQ added 0.88% as it inched closer to 5000 and the Russell 2000 was up 1.60%. Germany was only open for two days last week and gained 1.38%. France was open for three days and was also up 1.38% while the FTSE 100 was up 0.90% for the same three day period. Hong Kong and Australia also had three day weeks and rose 1.05%...

Read More

Posted by on Dec 16, 2014 in AdvisorShares, Impact

If Corporate America Is Investing in Sustainability, Then Why Aren’t You?

If Corporate America Is Investing in Sustainability, Then Why Aren’t You?

By: Michael Marinus Young, AdvisorShares Institutional Consultant   “Thanks, but I don’t believe in that stuff…” While traveling the country this fall, that was the response we received from some financial advisors after the introduction of an investment that focuses on sustainability. When pressed to explain, the common refrain was “ESG or SRI investments underperform, and I want my clients invested in the best companies.” Unfortunately, thirty seconds in an elevator or hallway is not enough time to build the case for sustainability. But here on AlphaBaskets, we’re afforded the space and time to better explain why Sustainability should matter to them, and you. And rather than start from scratch, let us lead you to a recent piece from Fast Company: http://www.fastcoexist.com/3036010/why-is-goldman-sachs-advocating-for-sustainability. If “Accenture, Deloitte, Goldman Sachs, Harvard Business School, McKinsey & Company, and PricewaterhouseCoopers have released data-driven case studies, global surveys, and exhaustive reports offering compelling proof that using business as a force for good is also good for business,” then how could a financial professional ignore the...

Read More

Posted by on Dec 16, 2014 in Active ETF Reports, AdvisorShares, ETF Strategist

AdvisorShares Active ETF Market Share Update – Week Ending 12/12/2014

AdvisorShares Active ETF Market Share Update – Week Ending 12/12/2014

Assets in actively managed ETFs fell $666 million or 3.6% which was right in line with declines in the broad domestic equity indexes. As of the close on December 12, AUM stood at $17.459 billion. Earlier in the fall we made several mentions of the large asset flows going into First Trust but of late those inflows reversed and this continued last week with an additional $533 million flowing out. In the last month its market share has fallen from over 18% to its current 14%. AdvisorShares was the only other notable name on the outflow list with $94 million. Inflows were modest across the board with PIMCO bringing $18 million and PowerShares adding $13 million. There was one new fund issued last week and with it one new fund provider; Validea Funds which launched the Validea Market Legends ETF, a Global Equity ETF that tracks the picks of well-known and well regarded investors. To subscribe to our full monthly report, please register at www.advisorshares.com (note the full report...

Read More