Financial advisers may be underutilizing one of today's hottest investment tools and it might be because they're taking the path of least resistance.
Despite a keen interest in embracing ETFs, advisers invest a relatively small proportion of client assets in the funds and don't always take advantage of tools to help parse their complexities, according to an informal survey conducted by S&P Capital IQ at the ETF Virtual Summit earlier this month.
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Half of the respondents invested less than 20% of clients' assets in ETFs, while only 12% placed 60% or more in the funds, according to the survey. Not surprisingly, the most popular investment tool among advisers was mutual funds, said Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ.
One reason advisers might be shying away from ETFs is lack of knowledge, Mr. Rosenbluth said. One sign of this is that advisers often will buy the funds only from one or two companies they know well. For example, an adviser might look only to major issuers like BlackRock's iShares unit or The Vanguard Group Inc., Mr. Rosenbluth said.
Advisers don't have the time to go through six different providers' websites to understand ETFs.Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ.
5 Best Chemical Stocks To Watch For 2015: Arctic Gold Publ AB (ARCT)
Arctic Gold Publ AB, formerly known as Alcaston Exploration AB, is a Sweden-based exploration and mine development company. Its main focus is on the Bidjovagge gold and copper ore field in northern Norway. The project is located in the municipality of Kautokenio. Apart from that, the Company�� portfolio comprises gold and base metal projects in the Norrbotten and Vasterbotten in northern Sweden. As of December 31, 2011, the Company held 78 exploration permits in Norway, comprising a total of 23.1 square kilometers. In Sweden the Company has 12 exploration permits comprising 17.4 square kilometers. As of December 31, 2011, the Company had one wholly owned subsidiary, namely Arctic Gold Operations AB. As of December 31, 2011, the Company�� largest shareholder was M.Elsasser & CIE AG (12.06%). Advisors' Opinion:- [By Brad Thomas]
He has undeniably delivered for his investors. In the space of 18 months, Mr. Schorsch has executed three transactions. He helped with the roadshow for Healthcare Trust of America (HTA), a non-traded REIT for which he served as broker-dealer and raised nearly $1 billion. He also listed American Realty Capital Trust (ARCT) for public trading and merged ARCT III with his own American Realty Capital Properties (ARCP). The three deals netted investors internal rates of return of 11%, 14% and 33%, respectively, according to company data. In the meantime, publicly traded shares of ARCP have increased 60% - to $16, from $10 - since last July.
Hot Rising Stocks For 2014: NetApp Inc.(NTAP)
NetApp, Inc. engages in the design, manufacturing, marketing, and technical support of networked storage solutions. It supplies enterprise storage and data management software, and hardware products and services. The company offers Data ONTAP, an operating system that supports storage area network (SAN) and network-attached storage (NAS) environments; storage efficiency technologies, including FlexVol, FlexClone, and Deduplication technologies; storage management and application integration software, such as OnCommand management software; fabric-attached storage unified storage systems, which support a range of data for users on various platforms; and virtual storage tier; V-Series network-based virtualization solutions that provide SAN and NAS access to the data stored in heterogeneous storage arrays. It also provides data protection software products, including Snapshot, SnapRestore, SnapVault, and Open Systems SnapVault techologies; MetroCluster products; and SnapMirror data replication solution. In addition, the company offers data retention and archive products, and Flash Cache modules; and storage security products for data security and key management in IP SAN, NAS, and tape backup environments; StorageGRID that enables intelligent data management and secure content retention; and professional services, global support solutions, and customer education and training. It serves energy, financial services, government, high technology, Internet, life sciences and healthcare services, manufacturing, media, entertainment, animation and video postproduction, and telecommunications industries. It offers its products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company was formerly known as Network Appliance, Inc. and changed its name to NetApp, Inc. in March 2008. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.
Advisors' Opinion:- [By Selena Maranjian]
Network storage specialist NetApp (NASDAQ: NTAP ) , also held by this technology ETF, surged 38%. The company initiated a dividend this year, and it's yielding 1.6%. The company's operating system, ONTAP, has been rated well, and has gained market share, too. Some wonder whether NetApp might end up acquired by another major data player, such as Oracle, while others are hoping that an activist investor might help the company's prospects. Meanwhile, the stock is significantly shorted, and the company has announced layoffs, and boosted its share buyback plans. It still looks attractive to some, in part due to strong free cash flow.
Hot Rising Stocks For 2014: ADVA Optical Networking SE (ADV)
ADVA Optical Networking SE is a Germany-based company that develops, manufactures and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deploy, manage and deliver data storage, voice and video services in metropolitan areas. Its optical transmission solutions are based on wavelength division multiplexing (WDM) technology. Its Ethernet-optimized transmission solutions for fiber- or copper-based lines are used to provide access for enterprises into a carrier's network. Its systems are used by telecommunications services providers, companies, universities and government agencies worldwide. It sells its product portfolio both directly and through an international network of distribution partners. Its optical and Ethernet-based network solutions have been deployed by more than 250 carriers and more than 10,000 enterprises. As of December 31, 2012, the Company had 13 wholly owned subsidiaries across Europe, Asia, North and Latin America. Advisors' Opinion:- [By Holly LaFon]
We re-established an investment in CME Group, Inc. (CME) during the period. CME is the largest and most diversified derivatives marketplace in the U.S. Its exchanges support trading across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, foreign exchange and metals. We believe CME has the opportunity to significantly accelerate its growth rates due to the eventual normalization of interest rates and the attendant interest rate volatility. CME's interest rate trading volumes (ADV) have been depressed as a result of the Fed's zero interest rate policy and low interest rate volatility. For example, interest rate ADV was 4.8 million in 2012compared to 7.1 million in 2007, before the financial crisis. However, given the Fed's recent policy statements (discussed above), market participants are starting to anticipate an end to quantitative easing (QE). On May 30, CME experienced record volume for interest rate derivatives with ADV of 19.4 million. With the globalization of CME's business, a host of new products, and the regulatory requirement for interest rate swaps to be cleared on an exchange, we believe CME's interest rate volumes can surpass their prior peak, significantly driving earnings growth for the company.
- [By Adrian Day]
Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.
Hot Rising Stocks For 2014: Altisource Residential Corp (RESI)
Altisource Residential Corporation is a development-stage company engaged in the acquisition and ownership of single-family rental assets. The Company�� primary sourcing strategy to acquire these assets includes purchase of sub-performing and non-performing mortgages, as well as single-family homes at or following the foreclosure sale (REO Properties (REO)).
The Company intends to pursue opportunities to acquire its single-family rental assets throughout the United States. The Company is managed by Altisource Asset Management Corporation (AAMC). On December 21, 2012, Altisource Residential Corporation�� spin-off from Altisource Portfolio Solutions S.A. (Altisource) was completed.
Advisors' Opinion:- [By Mark Holder]
Altisource Residential (NYSE: RESI ) (NYSE: RESI ) (NYSE: RESI ) purchases distressed mortgage loan portfolios with a strategy to work with borrowers to modify and refinance loans to either keep them in their homes or convert the unmodified loans into renovated rental properties.
- [By Amanda Alix]
For Wall Street types, single-family foreclosures can be bought cheaply and in bulk, then fixed up and rented. Companies like the Blackstone Group (NYSE: BX ) and Colony Financial (NYSE: CLNY ) have been very active in this market, with the former purchasing 16,000 homes just last year, and the latter ramping up its own portfolio to approximately 7,000. This new industry has also spawned fresh entrants from the REIT field, Silver Bay Realty (NYSE: SBY ) and Altisource Residential, (NYSE: RESI ) two trusts that were spun off earlier this year from parent companies Two Harbors Investment (NYSE: TWO ) and Altisource Portfolio Solutions (NASDAQ: ASPS ) , specifically to take advantage of the boom in the foreclosure-to-rental market.
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