Exchange Traded Funds (ETF)

Exchange Traded Funds (ETF)

Postby helios » Sat Oct 25, 2008 3:36 pm

:arrow: yo guys, I just came back from a Market Talk in SGX on ETF.
Briefly, the message was SGX might list more ETF (Asia-ETFs) in the coming months. & these are cross-listed ETFs ...

Watch their press release in the next 2 months on this ... i think, the 2 broking firms are AMFraser and Philips. Next weekend, there is a similiar talk organised by Philips.


SGX derivatives and ETF markets set new records in September 2008

6 October 2008 – Singapore Exchange Limited (SGX) is pleased to announce today that both its derivatives and Exchange Traded Funds (ETF) markets set new trading records in September 2008. SGX’s derivatives market saw record volumes for both the July-September 2008 quarter and the month of September 2008, while SGX-listed ETFs set records for both the value and volume traded in September.

ETFs

Total trading value of SGX-listed ETFs was almost S$323 million in September 2008 – nearly 4% increase over the S$311.3 million previous record set in March 2008.

The value of SGX-listed ETFs traded continues to grow strongly, reaching S$2.2 billion in the first nine months of 2008. This is 277% higher than the S$584 million traded from January-September 2007. The increase in value is largely due to active trading in the iShares MSCI India ETF, Lyxor India ETF (Nifty) and SPDR Gold Shares.

“In addition, two broking firms have been producing monthly ETF portfolio allocation and research reports since July 2008 – the first in the stockbroking industry. The brokers have also been conducting seminars to educate our retail investors on ETFs and how to make the best use of these reports. SGX is proud to support this initiative, as part of our commitment to grow our listed ETFs into an Asian markets and multiple asset class platform.”

SGX currently has 19 ETFs covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan and also on commodities, e.g. gold.

Source: SGX Press Release
http://info.sgx.com/webcoranncatth.nsf/ ... penelement
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Re: Exchange Traded Funds (ETF)

Postby blid2def » Sat Oct 25, 2008 3:40 pm

Still waiting for inverse ETFs to hit SGX.
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Re: Exchange Traded Funds (ETF)

Postby winston » Tue Nov 04, 2008 1:42 pm

Still no Inverse ETFs :(

===========================================

Singapore Exchange launches 5 ETFs to overtake HK

SINGAPORE, Nov 4 (Reuters) - Singapore Exchange on Tuesday announced the launch of five new exchange traded funds (ETFs), taking its tally of such listings to more than that offered by rival Hong Kong.

Societe Generale unit Lyxor Asset Management will from Wednesday start offering ETFs that allow investors to track the performance of five different indices -- the MSCI Asia APEX 50, MSCI Thailand, MSCI Malaysia, MSCI India and Reuters Jeffries CRB Non Energy.

The new ETFs will increase the number of such products on SGX to 24, one more than the number listed on the Hong Kong Stock Exchange.
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Re: Exchange Traded Funds (ETF)

Postby kennynah » Tue Nov 04, 2008 7:54 pm

not so savvy mah.....market too small for any sponsoring fund to put up such inverse ETF....scarly cannot make it ..
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Re: Exchange Traded Funds (ETF)

Postby winston » Tue Nov 04, 2008 8:24 pm

They can have Inverse Fund on the S&P 500 or Nadaq ...
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Re: Exchange Traded Funds (ETF)

Postby millionairemind » Tue Nov 04, 2008 9:30 pm

Market is too illiquid in Singapore.

I rather buy the ETFs from AMEX. Much more to choose from too. ;)
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: Exchange Traded Funds (ETF)

Postby kennynah » Wed Nov 05, 2008 1:57 pm

winston wrote:They can have Inverse Fund on the S&P 500 or Nadaq ...


they already have all these inverse ETFs on US indexes... i thought you meant inverse ETFs for singapore market
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Re: Exchange Traded Funds (ETF)

Postby winston » Sun Dec 21, 2008 7:54 am

Agree. When I wanted to buy Commodities ETF about 5 years ago, there was no pure Commodity Fund. Thereafter, there was a proliferation of them. Maybe when the ETFs come out, you can go for one last run ie. put a tight trailing stop-loss on it. The last spurt is always the most enjoyable :)

====================================================================

You'll Lose Every Single Time if You Buy These ETFs By Brian Hunt

You've been taught – and probably believe – there's no such thing as a predictive indicator in the stock market that works every time.

The stock market isn't that easy, right? Oh, yes it is.

In fact, over the last five years, the financial industry has developed a new indicator that works 100% of the time and delivers gains of more than 50% per trade. More importantly, because this new indicator is triggered by investor sentiment and hype, it will surely continue to work for decades to come. Fear and greed are timeless.

After being in the newsletter business for nearly a decade, I've seen firsthand how investors move in huge crowds. I've watched a dozen different manias develop – knowing they would end badly.

When all our subscribers are clamoring for a newsletter to make more recommendations about a particular sector, when we see dozens of start-up publishers covering the same popular idea, when it's splattered all over the headlines in local papers... you can be sure of one thing: A crash is around the corner.

Subscribers wanted Internet stocks in 2000 (80% crash)... China in 2007 (70% crash)... and oil in 2008 (72% crash). It's just human nature. People tend to go crazy for the same ideas at the same time. In finance, this kind of crowd mentality produces horrific catastrophes for investors.

Remember in 2007 when agriculture was the rage? Food prices were soaring. Mexicans were rioting over the high cost of corn tortillas. There were actually shortages of rice in Thailand – which grows most of the world's rice. You couldn't watch CNBC without seeing an analyst talking up farming and fertilizer stocks. These stocks all went straight up for a few months... until they traded at absurd valuations. Most traded for over 40 times earnings. There's not a farm in the world that's worth 40 years of its production.

I saw the trend develop... and then I waited. I knew it was a mania. I knew it would end badly. Fertilizer companies advanced 350% in just 12 months. It was insane. In June 2007, I wrote, "A severe correction will coincide with a slew of Agriculture & Farming ETF offerings... Wall Street is never shy about releasing investment vehicles hundreds of percent too late."

A few months later, Wall Street firms began to launch new exchange-traded funds (ETFs) to make buying the entire agricultural sector easier for small investors. Nine months after that, the agricultural sector peaked... and then collapsed. The leading agricultural index fund - MOO - is down almost 70% from its peak.

Another fad that collapsed 2008 was metals and mining. Base metals suffered one of their worst crashes in history... just months after the iPath Copper ETF (JJC) launched. The fund administrator simply gave clients what they wanted... which turned out to be a falling lump of red metal. The copper ETF is down 63% since inception.

When you see Wall Street starting a bunch of new ETFs, you know there's going to be a disaster around the corner.

Launching a new ETF isn't a charitable endeavor. A fund manager launches an ETF because it believes the public is willing to plow hundreds of millions of dollars into the fund... which sends the fund manager millions in management fees. A small ETF of $300 million can generate over $3 million in fees. A large, popular ETF can generate over $30 million.

The way to raise money is to build a fund that's filled with the most popular stocks of the day. The same thing is true about selling newsletters. If you want to garner a lot of new subscribers, you have to fill your letters with whatever ideas are popular right now. And you can bet – every single time – when investment ideas get wildly popular, they also become wildly overpriced.

Investors who chase the hot sectors don't get the big returns they were seeking. Instead, they become grist for the market. Their losses provide income and earnings for real investors. The "crowd" keeps the market alive, while being eaten alive by Wall Street. This is the natural flow of the markets. It's the market's ecosystem. It will never change.

My friend, the legendary speculator Rick Rule, likes to say, "You're either a contrarian or a victim." New ETF introductions are an easy test to figure out which category you fall in. If you're buying them, you're failing the test.
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Re: Exchange Traded Funds (ETF)

Postby kennynah » Sun Dec 21, 2008 12:11 pm

winston wrote:The last spurt is always the most enjoyable :)


you naughty boy ....hahahaha 8-)
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Re: Exchange Traded Funds (ETF)

Postby kennynah » Wed Dec 24, 2008 12:32 pm

Trading Day 23Dec08 Note

There are enormous amounts of variables affecting price of underlying. It would be foolish to imagine we can ever know them all. However, it is not an excuse to allow a simple ex-dividend situation, which usually cause the value of the underlying to drop by the equivalent of the dividend issued, to cause I/T undue pain.

Such is the case, when Index ETF (SDS) did a turtle more than expected last night....and if I was caught in this mayhem, it would only be my fault, and mine alone, for I lacked the knowledge and was likely lazy to discover this simple fact....

*************************************

(from K's Trading Brokerage)

UltraShort S&P 500 ProShares (SDS), opened 13.8% (12 points) below the previous day's closing price, even though the S&P 500 Index started the day only 0.3% higher(recall that this is an "inverse" ETF to index movement). For those who were not aware, and perhaps thought there was something wrong with their computer, this discrepancy was simply attributed to the quarterly distribution of substantial dividends, as well as short and long-term capital gains on the ProShares ETFs. Since SDS traded "ex-dividend" on December 23, its price was automatically adjusted to be 11.48 points lower. This means SDS technically only opened half a point below the previous day's closing price. The remaining 11.48 points will be distributed to shareholder accounts on December 30. Whenever a dividend distribution occurs in an ETF position we're holding, we simply lower our stop and target prices by the exact amount of the payout to compensate for the price adjustment.

The ProShares ETFs are not unique with their dividend distributions, as hundreds of various types of ETFs also pay dividends on a regular basis. However, because of the complex nature of the composition of the inversely correlated Short and UltraShort ETFs, short and long-term capital gain distributions can be shockingly large. Although the $11.48 per share distribution of SDS was humongous, consider that UltraShort Semiconductors ProShares (SSG), as well as a few others, had a short-term capital gain distribution of more than 40 points! To prevent having these ETFs unintentionally trigger your stop prices due to quarterly dividend distributions, we suggest being aware of the anticipated "ex-dividend" dates, then adjusting your protective stop prices accordingly. A complete list of past distribution dates for all the ProShares ETFs can be found at ProShares.com.
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