Clean energy leads equity ETFs to fourth consecutive positive quarter

Jul 21, 2013 @ 12:01 am

By Tom Roseen

In the second quarter, equity exchange-traded funds managed to string together their fourth consecutive quarter of plus-side returns, albeit with only a 0.31% gain.

Despite the increased market optimism, the top-performing equity ETF classifications reflected investors' concern about signals from the Federal Reserve's that it intends to begin removing some of its easy-money provisions eventually. Consumer services funds, health/biotechnology funds and financial services funds were among the best-performing ETF groups during the quarter.

NATURAL RESOURCES

At the top of the leader board were select global natural resources funds and natural resources funds with a renewable energy twist. At the head of the class was the $109.5 million Guggenheim Invest Solar ETF (TAN), with an average trading volume of 236,850 shares per day for the quarter and a return of 46.96% for the three-month period ended June 30. The $14.3 million Market Vectors Solar Energy ETF (KWT), which added 27.75% to its first-quarter-ending value, came in second.

The global markets remained in a semi-funk during the quarter as investors pondered the news that the eurozone still was bogged down in recession and that the Chinese purchasing managers' index was at a nine-month low, signaling slowing growth in China. However, Japanese funds were a bright spot for world equity funds. Wisdom Tree Japan Hedged Equity Fund (DXJ) and iShares' MSCI Japan ETF (EWJ), attracted the largest inflows for the quarter, taking in a net $4 billion and $3.5 billion, respectively.

GOLD MELTED

Meanwhile, the onetime darling of the group, SPDR Gold Shares (GLD), suffered the largest net redemptions, handing back some $11.8 billion for the quarter. iShares' MSCI Emerging Markets ETF (EEM) witnessed net outflows to the tune of $7.6 billion.

Rising interest rates hammered some of the spread products and dividend payers late in the quarter. Nonetheless, seven of the 22 new offerings brought to market by ETF sponsors during the quarter were equity-income focused, with Cambria Shareholder Yield ETF (SYLD) experiencing the largest average trading volume (157,182 shares per day) for this group of newbies. It is interesting to note that despite the global concerns, 11 of the new ETF offerings were internationally focused.

Tom Roseen is head of research services for Lipper Inc.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

The power of data

Your clients have financial news and data at their fingertips, but donít know how to interpret it. Katy Gibson of Envestnet|Yodlee and Blake Kannady of Envestnet discuss the power of leveraging aggregated data.

Recommended Video

Path to growth

Latest news & opinion

Relying on trainees, Merrill Lynch boosts adviser headcount in 2017

Questions remain about long-term effectiveness of wirehouse's move away from recruiting experienced brokers.

Supreme Court review of SEC judges could roil pending cases

But long-term, the agency may get around questions of constitutionality by changing the way it brings on administrative law judges.

Lightyear Capital takes 50% stake in $9 billion HPM Partners

Private equity backing could fuel acquisitions by the large RIA.

Tax reform: 7 essential strategies for financial advisers

While advisers face the difficult task of analyzing the law's impact, they will also have a significant opportunity to prove their value by implementing money-saving strategies for clients as well as their own businesses.

Tax law: Everything advisers need to know about the pass-through provision

The provision is tricky, but could provide advisers and business-owner clients with sizable tax savings.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print