Chapter 1 : Introduction: The idea of ETF was first perceived by NATHAN MOST in 1993. Nathan’s first ETF was called SPARD (also referred to as SPIDER) and it was first traded on the American stock exchange (AMEX) by state street GA. SPARD’s only purpose is to track the S&P 500. The number of ETFs that track different indexes all over the world exchange markets have increased significantly since 1993. SPARD, as a first ETF, dominated the markets in the 1990s, together with CUBES, which was designed to track NASDAQ-100. The ETF is a financial product, which has attracted a large number of financial product designers. The ETF as a creative idea has opened a significant number of empty rooms on the exchange market, which needed to be filled with new ETF products. This is what attracted the financial product designers to create different types of ETFs in the last 21 years. Barclays’ global fund advisor introduced WEBS (world equity benchmark shares) in 1996 as a first ETF to provide American investors with easy access to the forging markets. They created a family of ETFs and each ETF had “ishares” as a first name and the index it followed as a second name (Ferri, 2002) . The ETF influence could first be seen in Europe, when the German Deutsche bank presented an ETF linked to commodity in 2006 (Fuchita & Yasuyuki, 2007). ETF Barclays continued to generate new EFT products by launching the first ETF linked to the bond price index in 2002. The ETF as a financial product on the
Investors tend to use triple-leveraged ETF to obtain triple the return yield of the investments. However, they are discouraged to invest on triple-leveraged ETF as the disadvantages overwhelm the advantages. One of the advantages of triple-leveraged ETF is that it gives three times the return whereas one of the disadvantages of triple-leveraged ETF is that it could lose triple of the tracked index. According to Cummans (2015), ‘The additional risks come in the form of counterparty risk, liquidity risk, and increased correlation risk’. Thus, ETF has higher risk as it may lose three times the return and increases bankruptcy rate. Result shows that the annual return to the triple-leveraged ETF is expected to be triple the annual return to the S&P 500 index, it is only applicable to theory where everything is in constant. In reality the tracked index fluctuating frequently, it will not be three times of the
Dimensional Fund Advisors (DFA) is an investment firm based in Santa Monica, California. It was founded in 1981 by David Booth and Rex Sinquefield. It is a different investment firm which think differently and push the frontiers of innovation. The firm had close working relationships with academics such as Eugene Fama and Kenneth French who introduced the Fama & French three factors model. Fama has worked in DFA since very early days, now he is the director of research department of DFA. He is known for his work on portfolios and asset pricing. This report is going to discuss the business strategy of DFA, issues relating to Fama & French Three Factor Model such as variables being used
EISMX main objective is to seek long-term capital growth, it invests mostly in companies with small market capitalization. EISMX also strives to mirror the Russell 2000 stock index, in other words this is a passively managed fund.
The first piece of propaganda that is used depicts a few British citizens behind the British flag, with an outline of the country on it. One of the types of persuasion it uses is the bandwagon appeal, which convinces others to join or do whatever the propaganda is suggesting, because others are doing it. Patriotism is used as well. Great Britain's flag and the country itself is on the paper, making it patriotic.
An "index fund" depicting a kind of common fund or unit investment trust (UIT) whose investment objective ordinarily is to accomplish the equal return as a specific market index, for example, the S&P 500 Composite Stock Price Index, the Russell 2000 Index or the Wilshire 5000 Total Market Index. An index fund will endeavor to accomplish its investment objective principally by putting resources into the securities (stocks or bonds) of organizations that are incorporated in a chose index. Some index funds might additionally utilize derivatives, (for example, options or futures) to help accomplish their investment objective. Some index funds put resources into the sum of the organizations included in an index; other index funds put resources into a delegate example of the organizations included in an index.
Overview of subject matter essential for the individual who requires general knowledge of the mutual fund industry and related topics. The individual may want to become a professional in the mutual funds industry or simply want to expand their knowledge of mutual funds for personal interest.
Going to Kennywood was always fun for me. But, this memory of a time we went, still has me in shock. It surprises me that I remember that day so vividly. It was a perfect, sunny day, and everyone was having fun. But this sunny day at Kennywood was about to turn into a terrifying memory I would never forget.
First of all I would like to thank Professor Lamb for creating a safe environment to speak openly about our own experiences about drugs and alcohol. Once upon consulting my field instructor earlier this semester, she had posed the question… “Are you just sitting in it?” The “it” referring to my anxieties since my father is an addict. As I reflect on this semester, I believe there were a few times that I was “just sitting in it,” but as I heard some colleagues open-up it instilled a sense of courage and relief that I was not alone. I appreciate that you, Professor Lamb, created a safe and non-judgmental space to share our thoughts, feelings, comments, questions, etc. Thank you for giving us assignments that were not just “busy work” and that challenged us to get comfortable with the uncomfortable.
The virtue of putting a financial stake into both the stocks and exchange traded funds (ETFs) is a sprawling and a dazzling investment decision. However, (Reiss, 2016) explains that it may also turn negative is the stock and ETFs screening process is done blindly. Based on Yahoo finance and ETFdb ETF Screener, I chose to invest and trade in the following stocks, equity and non-equity exchange traded funds:
IMF stands for International Machinery Fund International Monetary Fund Indian Machinery Fund Indian Monetary Fund3. SEC means.. Securities & Exchange Commission Stock Exchange Commission Script Exchange Commission Special Exchange Commission4. NSE stands for National Stock Exchange National Script Exchange Network of Stock Exchange Non Stock Exchange5. NYSE is is acronym for New York Stock Exchange New York Scripts Exchange New York Special Exchange National York Securities Exchange6. NSDL stands for Network of Securities Depository Limited Network of Stocks Directory Listing National Stock Directory Limited National Securities Depository Limited7. ADR stands for All Depositary Receipt Asian Depositary Receipt African Depositary Receipt American Depositary Receipts8. In the context of Mutual Funds, SIP stands for.. Systematic Investment Plan Scheduled Interest Plan Specific Insurance Plan Special Income Plan9. In the context of Mutual Funds, ELSS means Endowment Linked Savings Scheme Equity Linked Savings Scheme Established Line Savings Scheme Entrepreneur Line Savings Scheme10. AMFI stands for Association of Mutual Funds in India Arbitrated Mutual Funds India Arbitrated Monetary Funds India Associated Mega Finance of India
1. The fund deals with technology driven companies due to the expertise of its fund manager in that area; comfortable in prediction of individual stock
By the attempt to eliminate the price effect from an index fund, the fundamental index managers change the set-up of the index in such a way that it automatically changes the basic characteristics of the index. As shown in exhibit 10 of the Research Affiliate case, fundamental indices usually not only deal with a higher turnover ratio but also with a higher net expense ratio, for implementing the fundamental strategy in reality seems to go hand in hand with higher costs.
With the power of sending messages that a text could not, visualization is a useful tool that can effectively present ideas to people. Embedded with different rhetorical elements, a visual text can further lead the audience to related issues and inspire it to perform particular actions. Since the green house gases were scientifically proven as a significant contributor toward global warming and climate change, reducing the production of green house gases and recycling domestic wastes have been the campaign for different organizations across the globe. The World Wild Fund of Nature is one that utilizes the ability of visualization to convey this message.
Over the past few years, disruptive ideas, innovations and economic forces have reshaped the way we live. Investors are constantly researching new and promising ideas in order to capitalize on themes that will drive tomorrow’s markets. Broadly speaking, thematic investing is the approach of taking advantage of future trends while just as importantly avoiding the losers. Its forward looking approach stands in contrast to a relative investing strategy which relies heavily on market capitalization to determine weights in a portfolio. On the other hand thematic investing is a top down investment approach providing investors an opportunity to generate alpha. Fundamentally, the objective of thematic investing is to not only generate superior returns but is evolving traditional index investing.
This paper will also give institutional investors the information needed to decide whether either fund-type is suitable for their investment strategy. An institutional investor who wants to invest in emerging technologies but needs the liquidity provided by public markets