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S&P Dow Jones Indices-When Smart Beta Fails
September 22, 2016--How should an investor in a factor (or "smart beta") index judge its performance? In this respect at least, smart beta is like any other strategy: you should evaluate it against the claims that its vendors made before you bought it.
This requires some subtlety. Smart beta methodologies pick stocks based on fundamental or technical characteristics, and performance claims are derived from the historical behavior of those characteristics.
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Source: S&P Dow Jones Indices
First Trust Launches Seven ETFs Based on Nasdaq US Smart Sector IndexesSM
September 21, 2016--Sector-based index ETFs that use a three factor stock selection methodology incorporating volatility, value and growth.
First Trust Advisors L.P. ("First Trust"), a leading exchange-traded fund ("ETF") provider and asset manager, has launched seven new ETFs based on the Nasdaq US Smart Sector IndexesSM. The indexes, which are created and administered by Nasdaq, Inc. ("Nasdaq"), are modified factor-weighted indexes designed to provide exposure to US economic sectors.
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Source: First Trust
Amplify(R) ETFs Launches the Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV)
September 21, 2016--PFV owns the five highest-ranked U.S. dividend ETFs across three categories: High dividend income, low share price volatility, and low expenses
Amplify ETFs announces the launch of the Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV), the first YieldShares ETF to enter the market via the Amplify platform.
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Source: Amplify ETFs
DOL fiduciary rule to cost the securities industry $11B by 2020: study
September 21, 2016--Independent broker-dealers expected to be hardest hit, with a 22% loss in revenue.
Implementing the Department of Labor's new fiduciary rule for retirement accounts will cost the brokerage industry $11 billion in revenue over the next four years, according to a recent study from A.T. Kearney, a consultant. Hardest hit will be independent broker-dealers, who stand to lose $4 billion in revenue, or 22%, of the industry's total, according to the study, which was released in August.
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Source: investmentnews.com
Bats Welcomes Elkhorn Fundamental Commodity Strategy ETF to the Bats ETF Marketplace
September 21, 2016--Now 101 Issues Listed on Bats in the U.S.
Bats Global Markets, Inc. (Bats: BATS), the #1 U.S. market for exchange-traded fund (ETF) trading, today welcomed the Elkhorn Fundamental Commodity Strategy ETF (Bats: RCOM) to the Bats ETF Marketplace.
The new issue, the third Elkhorn ETF to list on Bats, is an actively managed fund that seeks to provide total return which exceeds that of the Dow Jones RAFI Commodity Index benchmark.
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Source: Bats Global Markets, Inc
Trading Halts Could Last Longer in Extreme-Volatility Events
September 21, 2016--Exchanges seek to extend process that seeks to balance supply and demand after circuit breaker
U.S. stock exchanges have proposed to overhaul the way trading resumes after a halt caused by wild price swings, advancing a new system that could reduce the number of trading pauses but lengthen how long they last.
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Source: Wall Street Journal
Federal Reserve issues FOMC statement
September 21, 2016--Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and growth of economic activity has picked up from the modest pace seen in the first half of this year.
Although the unemployment rate is little changed in recent months, job gains have been solid, on average. Household spending has been growing strongly but business fixed investment has remained soft. Inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months.
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Source: federalreserve.gov
Barron's 400 ETF Strenghens Fundamentals In Semi-Annual Index Reconstitution and Rebalance
Sectors Reflecting Economic Strength Have High Continued Representation, Energy Allocation Pared Increased Weighting to Small-Cap Segment
September 21, 2016--The Barron's 400 ETF (NYSE Arca: BFOR), a smart beta exchangetraded fund that seeks to track the Barron's 400 Index (B400), has completed its semi-annual rebalance based on the reconstitution of its underlying benchmark.
The rules-based and fundamentals-driven B400 was designed to give investors a means of tracking some of America's highest-performing companies based on the strength of their financial statements and the attractiveness of their share prices.
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Source: Barron's
Elkhorn Launches First Ever Dorsey, Wright & Associates, a Nasdaq Company, Commodity Rotation ETF No K-1.
September 21, 2016--Elkhorn Investments, LLC, a pioneer of research-based investing, announced today the launch of the Elkhorn Commodity Rotation Strategy ETF (DWAC ).
DWAC is the first commodity exchange-traded fund (ETF) based on Dorsey, Wright & Associates (DWA), a Nasdaq Company's, proprietary Relative Strength methodology.
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Source: Nasdaq.com
CFTC.gov Swaps Report Update
September 21, 2016--CFTC's Weekly Swaps Report has been updated, and is now available.
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Source: CFTC.gov