However, there is a dual exchange listing requirement click here. which we are working on currently and we are also reviewing our expense ratio for the same. While the mutual fund industry is gearing up for the business, insurers do not seem very enthused and are waiting to study the final guidelines. We are yet to discuss the draft guidelines in detail internally. We also plan to discuss the draft with Irda. Based on a preliminary analysis, we are not sure if we would be using ETFs as a part of our portfolio given the additional costs attached in doing so and because we will be able to replicate the underlying portfolios ourselves, said Prasun Gajri , chief investment officer, HDFC Standard Life Insurance Co. Ltd.
private equity firm Warburg Pincus has bought a majority stake in a European exchange traded fund provider, in a deal that will give the asset manager new funds to expand offerings and grow through acquisitions, the Financial Times reported on Sunday. Warburg Pincus purchased the stake in Source from a group of banks that included Bank of America Merrill Lynch and Goldman Sachs, according to the report that valued the investment at about $300 million. (Reporting by Chris Prentice; Editing by Chris Reese) FILED UNDER:
ETF Does Not Mean Index Fund
Most assets in ETFs are tracking capitalization-weighted market indexes. These are familiar indexes that were all familiar with. ETFs that track market benchmarks have significantly more assets in them than ETFs that employ other strategies, and continue to attract most of the new asset flow according to Morningstar . The S&P 500 is the largest and most popular index in this category. Non-benchmark following ETFs were introduced in 2003.
Highland/iBoxx Senior Loan ETF Announces Details of January Regular Distribution
With the 10-Year Treasury Note Yield holding steady at approximately 3% and the Fed committed to a near zero Fed Funds rate for the foreseeable future, income investors have to look for additional yield in unconventional places. Even a traditional dividend paying common stock is likely to only have a yield in the neighborhood of 3%, which may not cut it for a retired household that is looking to extend their savings for many more years. The key to enhancing your income sources without taking an inordinate amount of risk is to carve out a small slice of your portfolio for avant-garde dividend paying sectors. Asset classes such as preferred stocks, MLPs, and REITs can often times be desirable because they do not correlate directly to equity or bond price movement. This allows you to diversify your portfolio holdings into areas of the market that may outperform traditional asset classes under the right circumstances. They can also help smooth out volatility by somewhat offsetting the price movement of other securities in your income mix. In 2013, the performance of these alternative strategies was a mixed bag. The area that saw the most strength was master limited partnerships, of which the Alerian MLP ETF (NYSEARCA:AMLP) is still the biggest of the group with over $7 billion in total assets. The commodity sector had a volatile year; however the income stream that MLPs derive from their infrastructure leasing and development has been rock solid. AMLP gained over 18% last year and is currently paying a yield of over 6%, which is distributed quarterly. One of the advantages of owning an ETF instead of an individual MLP is that you dont have to deal with the tax headache of a K-1 on your tax return and you get the benefit of diversification amongst a similar segment of companies. If the economy stays on track and commodity prices (i.e.
ETF Income Investing Ideas For 2014 [Vanguard REIT ETF, Alerian Mlp, iShares S&P US Pref Stock Idx Fnd (ETF)]
About Highland Capital Management Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has approximately $18 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland’s strategies include collateralized loan obligations (CLOs), high yield bonds, distressed credit, public and private equities, structured products and natural resources. Investors should consider the investment objectives, risks, charges and expenses of the Highland/iBoxx Senior Loan ETF carefully before investing. This and other information can be found in the Fund’s summary and full prospectuses, which may be obtained by calling 1-855-799-4757 or visiting http://www.highlandfunds.com. Please read the prospectus carefully before you invest.