PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: MyPrivateBanking GmbH

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

MyPrivateBanking Research Publishes a New Guide on the Risks and Negative Side-effects of ETFs - ETFs became very popular nevertheless clients should be aware of certain risks
MyPrivateBanking Research Publishes a New Guide on the Risks and Negative Side-effects of ETFs

 

NewswireToday - /newswire/ - Zurich, Switzerland, 2010/06/14 - ETFs became very popular nevertheless clients should be aware of certain risks.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

In just a couple of years Exchange Trades Funds (ETFs) became a very popular investment vehicle, however, as always when new products are rapidly gaining popularity risks and unwanted side-effects are increasing as well. The new guide by MyPrivateBanking Research “ETFs – Get the Most Out of Them without Taking All the Risks” details five potentially deadly risks involved in ETF investing (default risk, tracking error, costly spreads, exotic ETFs and the special case of currency ETFs) and provides private investors with practical information on how to select the optimal funds for his or her needs.

In April 2010 European domiciled ETFs had almost €200 bn under management. In the first four months of 2010 alone these funds received more than €14 bn in net new money. In Europe there are now 932 funds listed on the exchanges overtaking the USA with 839 listed ETFs. The sheer number of new funds implies that many ETFs are covering the same index but also that a multitude of funds are now covering very narrow or exotic market segments, often resulting in high costs, illiquid markets and non-transparent investments. MyPrivateBanking also found that funds missed their benchmark by a wider margin than in previous years.

“In general, ETFs and similar passive products are a good tool to construct a passive, market-tracking strategy”, emphasizes MyPrivateBanking`s Research Director Steffen Binder his overall positive view of ETFs. “However, given the present "ETF-hype", some private investors fear that ETFs might have their own “dirty little secrets” to make them more profitable for the issuer but also riskier for the investor. Consequently, it all the more important for the private investor to compare ETFs and examine the small print more closely.
In order to answer these concerns the MyPrivateBanking guide for private investors and wealth managers takes an in-depth look at the following major ETF risks: The tracking error; the default, the trading risks and the risks of Exotic ETFs and as well currency ETFs. The guide shows that with simple measures investors can minimize these risks and take full advantage of the passive investment opportunities opened up by ETFs.

“Less than one third of the wealth managers include ETFs in their proposal, with a total share of the assets in the portfolio on average below 10%.”, summarizes Christian Nolterieke, Managing Director of MyPrivateBanking, the disappointing results of the latest MyPrivateBanking survey of investments proposals for wealth management clients. “Investors should educate themselves about the risks of ETFs and then push their advisers to use more ETFs hereby reducing their costs significantly without hurting performance.”
Key recommendations of MyPrivateBanking are to avoid fund-of-fund-ETFs, exotic ETFs together with so-called “active strategy with passive products”, e.g. sector rotation with ETF products. All these products and strategies generate unnecessary costs and risks and diminish the benefits of ETF-investments.

About MyPrivateBanking

MyPrivateBanking.com is the first independent information and networking platform for clients of private banks and clients of wealth managers worldwide. MyPrivateBanking.com is not a bank but helps you to get more value out of your wealth manager. The founders have the vision to make wealth management a lot more transparent, cost efficient and client-focused – driven by their own experiences as clients of a number of wealth managers.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: MyPrivateBanking GmbH

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Financial/Legal/Venture articles,
CATCH Visitors via Your Competitors Announcements!


MyPrivateBanking Research Publishes a New Guide on the Risks and Negative Side-effects of ETFs

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

|
Publisher Contact: Christian Nolterieke - MyPrivateBanking.com 
+41(0)71 670 0489 christian.nolterieke[.]myprivatebanking.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any MyPrivateBanking GmbH securities in any jurisdiction including any other companies listed or named in this release.

Financial/Legal/Venture via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From MyPrivateBanking GmbH / Company Profile


Read Financial/Legal/Venture Most Recent Related Newswires:

Infinera to Participate in Upcoming Investor Conference
Propel Financial Services Partners with Clear Payment Solutions
Digital Payments Power Growth in Booming Asia-Pacific Financial Technology Landscape Notes Frost & Sullivan
Digital Readiness Key to Growth Opportunities in the Financial Services Market
Prairie Capital Advisors Announces The Sale of Cornerstone Treatment Facilities Network to An ESOP
Koch Agrees to Invest Over $2 Billion in Infor
FTI Consulting Recognized as a Top Service Provider in the Legal Industry
GE Completes Spin Off and Demerger of Bank BPH Core Bank to Alior Bank
ALM Expands Senior Leadership Team, Organization Focused on Customers and Transformation
Lazard Acquires Remaining 50% Stake in MBA Lazard - Fully Integrating its Latin American Operations
Western Union Business Solutions Announce Mark Davis As Head of Australia and New Zealand
Tabarak Investment Capital and Elite Capital & Co. Limited in Discussion to Finance Projects
Consulting Magazine Unveils the Profession’s Fastest Growing Firms At Inaugural Gala
Hills Invest Signs An Agreement with The Afore Profuturo in Mexico
TRA Searches for TPA Acquisition Opportunities

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  JobsWare.com

Visit  La Bella Bakery Artisan Bakery Arizona





 
  ©2016 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)