| j_r_ewing - Dienstag, 29. Mai 2001 - 19:16 |
| Eigentlich sind wir ja alle hier, weil wir der abgrundtiefen Überzeugung sind, daß wir es besser können als die Profis (zumindest die Fond-Profis). Falls aber doch jemand Interesse hat an einem Index- (oder Länder-) orienterten Depot hat (und sei es auch nur, um die Schwerpunkte aktiv zu steuern), möchte ich hier posten, was mir beim Surfen so in die Finger fiel: NYSE adds exchange-traded funds By Justin Wiser, CBS.MarketWatch.com Last Update: 5:15 PM ET April 9, 2001 NEW YORK (CBS.MW) - The New York Stock Exchange plans to begin trading three exchange-traded funds, signaling the surging popularity of ETF investments. With the move, the NYSE also makes a bold step into what has long been the domain of the Nasdaq and its sister American Stock Exchange. NYSE officials said on Friday that the exchange will trade the three most popular ETFs: SPDRs or Spiders, which track the S&P 500 (SPY: news, msgs, alerts) ; Diamonds, which follow the Dow (DIA: news, msgs, alerts) , and Cubes, which track the Nasdaq 100, and are so-called for their ticker symbol: (QQQ: news, msgs, alerts) . "This move shows that ETFs are here to stay," said Jim Wiandt, editor of Indexfunds.com. ETFs are baskets of stocks that trade on an exchange like a stock itself. They may track broad indices like those listed above, or distinct corners of the market, such as biotechnology. Rapid growth Over the past few years, money has poured into these funds as do-it-yourself investing has mushroomed. The American Stock Exchange launched the first ETF, an S&P 500 index fund, in 1993. At February's end, 82 exchange-traded funds were available, holding combined assets of $64.3 billion, according to the Investment Company Institute, the trade association for the fund industry. Even as the market has cooled in the past year, ETF assets have steadily risen. Over the six-month period ended March 31, ETF assets grew by 31 percent, according to Wiandt, even as the value of the Wilshire 5000 stock market index fell 22 percent. "We'll continue to see the money go up exponentially as it has the past few years," he said. Part of the past year's rise in ETF assets is due to market timers shorting the funds to bet against the stock market, Wiandt said. When investors do this, new ETF shares are instantly created. "ETFs offer features that are not available with mutual funds at prices that appear to be attractive," said Ed Rosenbaum, president of ESR Global Advisors. "They give you tradability and the ability to short." More on the way Wiandt said he sees more exchange-traded funds on the NYSE's horizon. "I'm sure they will roll out many more ETFs," he said. "Friday's announcement was a signal that they are very serious about this market." NYSE officials were not immediately available for comment. Other players are also entering the ETF market. Vanguard, the nation's second-largest mutual fund company, has plans to roll out a series of exchange-traded funds called Vipers. While ETFs offer many advantages over mutual funds - their expenses and their minimum investments are generally much lower - investors should use them wisely, advised Rosenbaum. "Frequent trading can erode any price advantages," he said. "They're definitely not for everyone," Wiandt said. "If you're a dollar-cost averager, it doesn't make sense, the costs are too high. Make sure you look very carefully at all the costs." As of February 28, broad index funds accounted for $56.9 billion of ETF assets, sector funds $5.6 billion, and international funds $1.9 billion. ------------------------------------------------------------------------------------------------------------------------------------------- The 'other' all-index portfolio Buy'n'hold and play the market with 100% ETFs By Paul B. Farrell, CBS.MarketWatch.com Last Update: 2:05 PM ET May 16, 2001 LOS ANGELES (CBS.MW) - How would you like a "one-size-fits-all" portfolio? You get a conservative, low-cost, buy-and-hold portfolio, coupled with the ability to have a little fun playing the stock market. The solution? An all-ETF portfolio. Exchange-traded funds (ETFs) give you the best of both worlds: The advantages of traditional index mutual funds, including low annual fees, with the liquidity of stocks that are repriced throughout the day. You also get to use fun stuff like market orders, stop orders, limit orders, short sales and margin buying. No wonder ETFs are catching on fast, with over $65 billion already invested. With an "untouchable" 90 percent of your assets in ETFs of 90 percent and treating the remaining 10 percent as "mad money" you still get to trade with wild abandon on at least part of your portfolio. Core large-cap ETFs ETFS have only been around since 1993 with the launching of the SPDR or "Spider," Standard & Poor's Depositary Receipts (SPY: news, msgs, alerts) tracks the S&P 500 index just like any S&P 500 index mutual fund. Currently, $28.1 billion is invested in Spiders, and there are even value and growth versions of the Spider. Another $2.4 billion is invested in Barclays Global Investors iShares S&P 500 (NNV: news, msgs, alerts) , for a total of $30.4 billion in S&P 500 ETFs, roughly 47 percent of all the money in the 82 ETFs. If you prefer the Dow 30, buy the "Diamond," (DIA: news, msgs, alerts) where another $2.6 billion is invested. One of those three large-cap, blue-chip ETFs should be a core investments for any all-ETF portfolio, easily occupying 50 percent, depending on your risk profile. Their biggest asset is that they're cheap. Yes, you pay a broker's commission going in. But if you buy and hold them in your "untouchable" accounts, once you're in, you're in he annual fee could be less than 0.10 percent, lower than most index mutual funds and substantially lower than the 1.40 percent fees of the average actively-managed stock fund. Mid-caps, small-caps and global The other 40 percent of your "untouchable" ETFs could be narrowed to this group, depending on your portfolio's ideal asset allocations: For mid-caps, there's the S&P 400 Mid-Cap Spider (MDY: news, msgs, alerts) or the iShares S&P Mid-cap 400 (IJH: news, msgs, alerts) . For small-caps, consider Barclays iShares Russell 2000 (IWM: news, msgs, alerts) or iShares S&P SmallCap 600 (IJR: news, msgs, alerts) . And for a large-cap global exposure, consider iShares S&P Global 100 (IOO: news, msgs, alerts) , or the developed markets in iShares S&P Europe 350 Index (IEV: news, msgs, alerts) , iShares MSCI UK Index (EWU: news, msgs, alerts) and iShares MSCI Japan Index (EWJ: news, msgs, alerts) . But watch out, capital gains distributions tend to be higher in foreign ETFs than domestics. You should consider putting 10 to 15 percent in each of these three categories, keeping in mind that while they have low annual management fees and low capital gains distributions, you'll still have brokerage fees on trades. So, your "untouchable" account works best if you minimize trading in and out. Even rebalancing and frequent small additions through dollar-cost averaging can run up your costs. In other words, this system works best with large lump-sum additions, like an 401(k) rollover, home sale or inheritance, followed by long-term holding. Otherwise, stick with no-load index mutual funds. Your "mad money" ETFs Public interest in ETFs sky-rocketed in early 1999 with the launching of the Qube (QQQ: news, msgs, alerts) , which tracks the tech-heavy Nasdaq 100 index. Even today, in the aftermath of the 2000 tech crash, about $26 billion is invested in Qubes. For perspective, keep in mind that the two S&P 500 ETFs and this Qube account for about 85 percent of all moneys invested in EFTs. Here's the fun part if you also love playing the market, something you can't do easily with an portfolio of traditional index mutual funds. Most of the other 75 or so EFTs are like a candy store for active sector fund traders, even though most are small funds with under $500 million and higher volatility. Here's a selection, by sector:Technology: SPDR Technology (XLK: news, msgs, alerts) , iShares Dow Jones US Tech Index (NJW: news, msgs, alerts) , iShares Goldman Sachs Technology (IGM: news, msgs, alerts) and Merrill Lynch's HOLDR series -- Software (SWH: news, msgs, alerts) , Wireless (WMH: news, msgs, alerts) , Semiconductors (SMH: news, msgs, alerts) , Telecomm (TTH: news, msgs, alerts) , Broadband (BDH: news, msgs, alerts) and Internet (HHH: news, msgs, alerts) . Healthcare: iShares Dow Jones US Healthcare (IYH: news, msgs, alerts) , iShares Nasdaq Biotech Index (IBB: news, msgs, alerts) , Holders Pharmaceuticals (PPH: news, msgs, alerts) and Holders Biotech (BBH: news, msgs, alerts) . Old Economy: SPDR Basic Industries (XLB: news, msgs, alerts) , SPDR Consumer Staples (XLP: news, msgs, alerts) , SPDR Consumer Services (XLV: news, msgs, alerts) , SPDR Financials (XLF: news, msgs, alerts) , SPDR Cyclical/Transportation (XLY: news, msgs, alerts) , SPDR Utilities (XLU: news, msgs, alerts) and Holders Oil Services (OIH: news, msgs, alerts) . IF you're a strong believer in the long-term growth of a particular sector, such as technology, you can always make any of these sector ETFs part of your "untouchable" account and just sit on them. But if you do this, make sure the sector ETFs fit with your overall asset allocations, and keep the reallocation to 20 percent of your portfolio. ETFs or traditional index funds? Now for the question everyone's anticipating - is an all-ETF portfolio better than one with all traditional index mutual funds that we scrutinized earlier? I'll fess up -- neither one works as a "one-size-fits-all" solution for every investor. There is no such animal - you have to find out what works for you. For more information on ETFs, check out these websites: ETFCentral.com, Exchange-Traded-Funds.com, Morningstar.com, and IndexFunds.com. Paul B. Farrell, author of "The Winning Portfolio" and three books on online investing, has been executive vice president of the Financial News Network and an investment banker with Morgan Stanley. He holds a doctorate in psychology and a law degree. ------------------------------------------------------------------------------------------------------------------------------- Link: http://cbs.marketwatch.com/news/story.asp?print=1&guid={A58A22D0-8B14-11D4-81B5-00C04F3CAC1F}&siteid=mktw Indexing – too many animals in zoo By Paul B. Farrell, CBS.MarketWatch.com Last Update: 1:33 PM ET Sept. 15, 2000 LOS ANGELES (CBS.MW) – Remember the ancient story of Noah’s Ark? Reminds me of today’s new economy world of index funds. Biblical warnings of a global flood. Noah builds ship big enough to hold two of every species. They board. No competition. No overload. No fighting. No eating each other (Noah had a well-stocked galley). The flood hits. Ark stays afloat. Animals behave. Cheering. Happy landing. Today’s a different story: Forget all those congenial twosomes in the Ark’s zoo. Instead, hundreds of index mutual funds, plus ETFs, Qubes, Webs, Diamonds, Vipers, now throw in HOLDRs and FOLIOs. Wild animals crowding on board. Bumping, pushing, snarling. Then, the perfect storm hits. Too many animals. Overload. Danger. Sinking? Too many animals crowding the zoo? Yes, indexing is in danger of sinking. A great idea drowning in its own success, in its own excesses. It’s a very distinct possibility. Too darn many choices today. Investors are overwhelmed. Today indexing is a wild menagerie out of control, a virtual zoo. Listen. See if you don’t agree: Vanguard launched the first index mutual funds way back in the 70s. They still run the granddaddy of them all, the $100 billion plus Vanguard 500 Index (VFINX: news, msgs, alerts) tracking the S&P 500. Today Vanguard has the most comprehensive selection of index mutual funds available, growth, value, mid-cap, small-cap, realty, several international and bond funds. Their expense ratios are still the cheapest among comparable index funds, and as low as a sixth the management fees of the average actively-managed equity fund. The American Stock Exchange launched the first exchange-traded index funds (ETFs) in 1993 with the Spider (SPY: news, msgs, alerts) tracking the S&P 500. Since then, America’s index world has exploded into a monstrous zoo flooding Noah’s Index Ark with the Nasdaq-100 Qubes (QQQ: news, msgs, alerts) , the Dow Diamonds (DIA: news, msgs, alerts) , and Morgan Stanley’s international index Webs. Barclays Global Investors, the world’s largest financial institution, recently started offering 60 different ETFs under the iShares brand. The biggest is the iShares S&P 500 Index Fund (IVV: news, msgs, alerts) . You can also buy iShares tied to the Russell 1000 (IWB: news, msgs, alerts) , the Russell 2000 (IWM: news, msgs, alerts) , and the S&P Midcap 400 (IJH: news, msgs, alerts) . And the expense ratio of iShares S&P 500 is only 0.09, half the expense ratio of the Vanguard 500 Index Fund. Plus you can trade these ETFs any time of the day. Merrill Lynch has launched its HOLDRs, trust receipts in predetermined baskets of 15-20 stocks. One of the most popular is their Biotech (BBH: news, msgs, alerts) , thanks to the recovery of that sector in 2000. Other Merrill’s HOLDRs fit neatly into such tech sectors as broadband, semiconductors, telecom, online business-to-business, pharmaceuticals. Technology Investor magazine notes HOLDRs are similar to ETFs. They trade like stocks in round lots of 100. So your initial investment can be in the thousands. You pay broker’s commissions. And for a small fee you can convert the HOLDRs shares into the underlying stocks. FOLIOfn.com was founded by a former SEC commissioner. They offer pre-packaged baskets of stocks that track specific indexes. Customers can also customize their individual folio. Folios are not traded on the exchanges. Rather, FOLIOfn.com does the trading twice a day by aggregating customer trades, which is less flexible than ETFs. There are no commissions, just a flat $295 annual fee. Vanguard has even filed to create its own line of fashionable ETFs, called Vipers for Vanguard Index Participation Equity Receipts. Apparently, Vanguard worried that if customers jump ship for the ETF convoy, this could give them an alternative to the popular index mutuals. Vipers! A hot racy image for one of America’s most conservative fund families. Yet typical of the competitive struggle overtaking the index world. It’s a zoo. Vipers are currently stalled by a dispute with Standard & Poor’s, the owner of the famed indexes. All these choices make your head spin! And that’s with just $50 billion invested in all the ETFs, which is only half the size of the Vanguard 500 Index mutual fund. ETFs are exploding. You wonder, how much? What’s the upside? Are their lower fees a threat to mutual funds tracking the same indexes? Are index fund investors really going to switch? Or will the fickle investor abandon ship, maroon this wild menagerie on a desert island, set them adrift on the high seas? Too much of a good thing overwhelming investors But maybe we’ve had too much of a good thing. Forbes recently noted that “S&P 500 funds have beaten 80% of managed domestic stock funds over the past decade. Most of the indexers’ outperformance is due to lower costs.” In fact, as Gus Sauter, manager of seven Vanguard index funds told us, their low expenses gives them a near-unbearable 2-3 percent edge over actively managed funds. Yes, but not against ETFs. Forbes goes on to say, “Well, if you like index funds, you’ll love exchange-traded funds” which often charge half the mutual fund rate, 0.09 versus 0.18 in the case of the S&P 500 instruments. And a small “nine basis points doesn’t sound like much but, compounded, it adds up. Say you put $100,000 away for 25 years and earn 7 percent, before expenses. The Barclay’s investment would be worth $11,000 more than the Vanguard.” That’s a big deal. What do you think? Do you agree? Is the index business getting so crowded it’s going to sink the proverbial Noah’s Index Ark. Too many choices? Is the average investor being overwhelmed? Will they abandon ship? The ultimate keep-it-simple ETF portfolio Hold that anchor! If you really want to weather the perfect storm aboard the new Noah’s Index Ark, Individual Investor magazine offers this incredible keep-it-simple portfolio made up of just five ETFs. Any investor can manage this: 40% Large-caps in the 500 Spider 20% Large technology in the Nasdaq 100 Qubes 20% Small-cap blended ETF in Russell 2000 15% International: iShares European stock ETF (IEV: news, msgs, alerts) 5% International: iShares in MSCI’s Japan ETF. (EWJ: news, msgs, alerts) Now get this! A lot of investors are already building the same kind of keep-it-simple portfolio using traditional index mutual funds. Just think how easy it would be to substitute ETFs! Hey, maybe Noah’s Index Ark won’t sink after all. Get it? Maybe the American investor will do just fine navigating through this cute menagerie of wild animals, this loveable zoo. It’s not as overwhelming as it seems. Paul B. Farrell is the author of "The Winning Portfolio" and three books on online investing. Dr. Farrell was executive vice president of the Financial News Network and an investment banker with Morgan Stanley. He has a Ph.D. in psychology and a juris doctorate. |