Where Insider Trading and ETFs Meet

Michael Johnston submits:Russell, the firm behind many of the indexes underlying popular equity exchange-traded products, has made its long awaited entrance into the ETF industry as a product sponsor. Earlier this year, Russell acquired Reno-based U.S. One, and subsequently renamed the One Fund (ONEF) to the Russell Equity ETF. Now the firm is rolling out a suite of indexed products to complement the actively-managed ONEF.

Michael Johnston submits:ETFs have come along way in their relatively short existence, evolving from plain vanilla funds tracking major equity benchmarks to include more exotic products such as ETFs with triple leverage, and ETFs that employ long/short strategies, hedge fund tracking ETFs, and actively-managed funds.

Michael Johnston submits:The fixed income corner of the ETF industry has experienced tremendous growth in recent years, as investors have become increasingly comfortable with achieving bond exposure through the exchange-traded structure. In 2010 more than $26 billion flowed into bond ETFs, following a year that saw more than $42 billion in net inflows. During the first six months of 2011 bond ETF inflows topped $16 billion.

Michael Johnston submits:The ETF industry has grown by leaps and bounds in recent years, thanks in large part to a shift by investors towards cost-efficient passive indexing strategies and away from pricey active management. But many in the industry have opined that actively-managed ETFs–in a sense hybrid products that exhibit characteristics of both active mutual funds and passive ETFs–would be the next big area of growth.

Michael Johnston submits:The tremendous growth of the ETF industry over the last several years has been generally cheered by the media and investors alike, as the introduction of cost-efficient products offering exposure to more and more asset classes has been praised as a positive development for investors both big and small. But many have viewed the surge in the ETF product lineup more skeptically, proposing that product development efforts have far outpaced the market demand for new exchange-traded products.

Michael Johnston submits:With the finish line in sight, 2010 has been a generally solid year for commodities as an asset class; strong demand from emerging markets, a shaky dollar, fears about inflation, and a number of supply issues have conspired to send prices of everything from corn to gold to sugar skyward. Despite the impressive performance from a number of different commodities, inflows into commodity ETFs have been light in 2010.

Michael Johnston submits:The ETF industry has gained the momentum of a runaway freight train in recent years, raking in billions of dollars every month as more and more investors embrace the benefits of the exchange-traded structure. Over the last 20 months or so, the commodity ETF space has been the engine of that train, accounting for a significant portion of new industry assets. In 2009, commodity ETFs took in more than $30 billion as dozens of new funds popped up and grew rapidly.

Michael Johnston submits:The latest figures on the ETF industry are out, and the results are hardly surprising. Total US ETF assets increased to $846.7 billion as of April 30, up from $540.2 billion a year ago and $790.9 billion at the end of 2009. Another solid month from equity markets contributed to the asset growth, but so did strong inflows across the board. Nearly $13 billion flowed into US-listed ETPs in April, bringing year-to-date cash inflows to $20.3 billion.