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ETF Related

Jul 20
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Multi-Asset ETF Portfolio Best Route for Smaller Endowments, Isenberg Professor Says

By Endowment Index™, ETF Related

Hossein Kazemi, senior adviser to the Chartered Alternative Investment Analyst (CAIA) Association and professor of finance at the Isenberg School of Management at the University of Massachusetts, is claiming that many endowments should skip investments in illiquid assets such as hedge funds and private equity in favor of a multi-asset ETF portfolio.

Kazemi argues that most endowments should not attempt to mimic the Harvard or Yale Endowment portfolio mix by including a vast array of alternative investments, because few of them have the kind of access to top-tier managers that they do, which can lead to “pretty pricey underperformance”.

Kazemi goes on to say that smaller endowments should pursue a specific ETF mix that can provide a more stable return with less of the cost. This mix, according to Kazemi, should provide “similar exposures as a combination liquid/illiquid portfolio, minus many of the expenses associated with illiquid assets”.

Link to full articleewm-e-logo-tm

Apr 13
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Today is the 10 year anniversary of the First Trust U.S. IPO ETF (FPX)

By ETF Related

At Endowment Wealth Management we have been recommending and using the above ETF since inception within our Private Equity and Risk Managed Models. We use this ETF as a proxy for public private equity, as these are considered newly listed. We are pleased with this ETF completing it’s 10 year of existence. Moreover, the performance over that time period has been impressive as well.

The IPOX 100 U.S. Index (that underlies this ETF) currently pools a total market capitalization of approximately USD 1.3 trillion. Since inception, the USD 585 milion ETF has returned +169.14% vs. +96.66% and +69.26% for the ETFs linked to the S&P 500 (SPY) Index and Russell 2000 (IWM) Index, respectively. The fund carries a 5 star rating from Morningstar.

The ETF tracks IPOX Schuster’s IPOX 100 U.S. Index (IPXO), benchmark for the largest and typically best performing U.S. IPOs and corporate Spin-offs “going public” over a 4-year rotational cycle. IPOX Schuster LLC (www.ipoxschuster.com), the Chicago-based innovative Financial Services Firm specializing in Financial Products Design related to Newly listed companies such as IPOs and corporate Spin-offs, is the creator and managed of this Index.

 

Oct 28
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How To Invest Like The Ivy League Endowments with ETFs

By Alternative Investments, ETF Related

Seeking Alpha published an article by Prateek Mehrotra outlining how ETFs can help investors build institutional quality portfolios diversified into liquid alternative investments designed to improve long-term risk adjusted returns. The article summary

  • The country’s largest endowments aim to preserve capital while producing income and appreciation with less correlation to the stock market regardless of market conditions.
  • Performance among Ivy League endowments and retirement plans that invest like them varied widely last year but in the long run, they posted stellar risk-adjusted returns.
  • You can invest like an Ivy League endowment yourself with a basket of ETFs offering exposure to all of the major asset classes in their portfolios.

The entire article can be read on the Seeking Alpha website.

Jul 24
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IPOX-linke​d U.S. IPO ETF (FPX) set to benefit as Facebook surges after earnings – Now matches Google post-IPO !!!

By ETF Related

Facebook stock gained +5.51% to USD 75.22 in after-hours trading, a new post- IPO high.

An investment product set to benefit from Facebook’s surge is the USDm 487 First Trust U.S. IPO Fund (ticker: FPX), a five-star (3/5 years) fund. Linked to the IPOX U.S. 100 (IPXO) and launched in April 2006, the fund invests in the largest 100 U.S. domiciled IPOs and Spin-Offs using the IPOX Index technology, providing an asset allocation focused approach to the “going public” effect in respective companies.

Included on 9/21/2012 into FPX, Facebook’s +311.85% rise during the first 459 trading days in the ETF now closely matches the post-IPO performance of Google (GOOGL US), which had gained +343.43% during the same post-IPO time period.

FPX IS AN ETF WITHIN OUR PRIVATE EQUITY MODEL.