Welcome!

News Feed Item

Zacks.com ETF Strategist Eric Dutram highlights: 5 Trends to watch in the ETF industry this year

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.

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

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:

http://www.zacks.com/stock/news/118961/5-etf-predictions-for-2014

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.

About Zacks

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.

Contact: Eric Dutram
Company: Zacks.com
Phone: 312-265-9462
Email: [email protected]
Visit: www.Zacks.com

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
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 ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...