Record 2013 outflows top the previous record from 1994, when bond-fund investors withdrew almost $63 billion. That year, the 10-year Treasury yield rose above 8% from just under 6%. In late 2013, the yield on the 10-year /quotes/zigman/4868283/delayed 10_YEAR 0.00% , a benchmark for most borrowing costs, topped the psychologically significant 3% mark for the first time since September, leaving many to wonder how quickly and how much higher it can go. Yet some of that move has been steadily absorbed by the bond market. A better U.S. growth picture, post-taper, is priced in to the market, said Robert Tipp, chief investment strategist at Prudential Fixed Income.
ETF Income Investing for 2014, Part 1: Bonds
4, 2014, 9:00 AM 1 Email ETF Database is an online guide to ETF Investing Recent Posts Periodic Table of ETFs: What Popped and What Dropped in 2013 Here is a look at all of the ETFs that have posted new one-year highs and lows over the past trading week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. read here As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETF Insider recommendations, sign up for a free 14-day trial of ETFdb Pro . Pro Membership Required to Continue Reading To continue reading this article, you must be an ETFdb Pro member.
These bond funds and ETF types could make money in 2014
ASHR isn’t cheap. It has a relatively high expense ratio of 1.08 percent. Where to put your money now Rebecca Patterson, Bessemer Trust, and Barry Knapp, Barclays, provide investment strategies for 2014. If you didn’t invest last year, it’s not too late to invest now, says Patterson. The ETF is essentially flat since its launch. Deutsche Bank, however, has filed plans with the SEC to debut even more funds with access to A-shares small caps and sectors.
Friday’s ETF Movers: GDXJ, GXC
Components of that ETF showing particular strength include shares of Aurcana (AUN.CA), up about 16.1% and shares of Semafo (SMF.CA), up about 6.3% on the day. And underperforming other ETFs today is the SPDR S&P China ETF (GXC), off about 1.1% in Friday afternoon trading. Among components of that ETF with the weakest showing on Friday were shares of CTRIP.com International (CTRP), lower by about 7%, and shares of 21vianet Group (VNET), lower by about 4.1% on the day.
ETF Insider: New Highs & Lows January 4th Edition
stock funds rose a stunning 34.2% in 2013 on average, including dividends, in a year that was anything but average. These funds ETF counterparts fared even better, up 34.8%, according to preliminary data from investment researcher Morningstar Inc. The U.S. benchmark S&P 500-stock index /quotes/zigman/3870025/realtime SPX -0.03% , meanwhile, delivered a 32.4% total return for 2013. The 30 stocks in the Dow Jones Industrial Average, /quotes/zigman/627449/realtime DJIA +0.17% , meanwhile, rose 26.5%, the blue-chips biggest advance since 1995 . To put things in perspective, the S&P 500 in 2013 gained more than three times the stock markets average annualized long-term total return.
In with the new: Unusual ETFs in 2014
Bonds shouldn’t be ignored. Rather, hold them strategically, with the knowledge that there may be speed bumps along the way to your investment goals. These are my thoughts on opportunities and risk in bonds over the next 12 months. Most investors perceive rising interest rates to be the biggest risk to bond holders over the next year.