|By PR Newswire||
|January 9, 2014 09:31 AM EST||
CHICAGO, Jan. 9, 2014 /PRNewswire/ -- Securities in this article include: Cambria Foreign Shareholder Yield ETF (AMEX:FYLD- Free Report), Horizons S&P Financial Select Sector Covered Call ETF (AMEX:HFIN-Free Report) and ETRACS Monthly Pay 2xLEveraged Closed-End Fund ETN (AMEX:CEFL-Free Report). Eric Dutram looks at 5 Trends to watch in the ETF industry this year.
5 Trends to watch in the ETF industry this year written by Eric Dutram of Zacks Investment Research:
2013 was a great year for the ETF industry, thanks to strong flows in equity funds, a host of new launches, and demand for low cost products. Due to these trends, assets under management for the total industry crossed the $1.6 trillion level, while the total number of funds surpassed the 1,500 mark.
And 2014 is shaping up to be a solid year too, as many investors remain reasonably bullish on the economy, while Europe is also surging back. Assuming that the QE taper doesn't impact the economy too much, there is plenty of reason to think that stocks can march a bit higher this year as well (see 7 ETFs to Buy in 2014).
Yet even with this solid backdrop, the ETF industry could be in for some surprises this year. There are plenty of untapped markets out there, while there are at least a few dozen funds that have failed to capture investors' interest on the other side of the coin.
Given this, it could be a rocky year for some issuers, though others seem well positioned to take advantage of the market trends. In particular though, we look for the following five predictions to come true for the ETF industry, and dominate the news cycle this year:
New Income ETFs Dry Up
Despite the taper threat, new income ETFs continued to hit the market. A plethora of new products with an income focus launched in 2013, giving investors a variety of options to target income-investments be they in the form of covered-calls, dividend growth, or dividend quality.
While these have been welcomed additions to many investor portfolios, you have to wonder how many more the market can hold. We have already seen a few launched from First Trust in 2014, and I am skeptical that the market will be able to stomach too many more (read 3 Best Dividend ETFs of 2013).
For example, in just the last two months of 2013, investors saw several ETFs hit the market with an income focus. These include a variety of strategies such as the Cambria Foreign Shareholder Yield ETF (AMEX:FYLD- Free Report), the Horizons S&P Financial Select Sector Covered Call ETF (AMEX:HFIN-Free Report), and the ETRACS Monthly Pay 2xLEveraged Closed-End Fund ETN (AMEX:CEFL-Free Report), just to name a few.
Bottom Line: The intense flow of income ETFs slows to a trickle, especially as competition heats up and rates continue to rise.
Emerging Markets Rebound
Although flows into equity products were pretty intense for U.S.-focused funds, emerging markets saw heavy outflows. (AMEX:EEM-Free Report) and (AMEX:VWO-Free Report), the two most popular emerging market funds on the market, were the biggest losers in terms of assets with each losing more than $8 billion. Other emerging market funds also led the list of the biggest outflows as concerns over the taper, a strong dollar, and growth prospects hampered these securities.
However, many of these emerging markets have stabilized in recent trading, and with strength projected in key markets like China, they could be due for a rebound. Plus, with developed markets performing so well, it could lead to some serious strength for exporters in the developing world.
Bottom Line: Emerging Market ETFs will see a rebound, and solid inflows for 2014.
For the full article, please visit Zacks.com at:
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=113
Follow Eric on Twitter: http://twitter.com/ericdutram
Join Zacks on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jul. 28, 2016 10:00 PM EDT Reads: 2,094
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Jul. 28, 2016 10:00 PM EDT Reads: 1,714
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 10:00 PM EDT Reads: 1,436
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 28, 2016 09:00 PM EDT Reads: 2,701
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 28, 2016 07:15 PM EDT Reads: 1,228
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Jul. 28, 2016 07:15 PM EDT Reads: 368
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 06:45 PM EDT Reads: 1,635
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Jul. 28, 2016 06:30 PM EDT Reads: 1,660
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Jul. 28, 2016 06:00 PM EDT Reads: 955
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Jul. 28, 2016 05:30 PM EDT Reads: 1,864
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 05:30 PM EDT Reads: 2,214
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Jul. 28, 2016 05:00 PM EDT Reads: 432
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 28, 2016 04:30 PM EDT Reads: 916
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 28, 2016 04:30 PM EDT Reads: 1,191
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Jul. 28, 2016 04:15 PM EDT Reads: 376