Taiwan's preference for leveraged and short ETFs is on display again today, with major investment house Yuanta Securities listing two new leveraged and one new short ETF in Taipei. (Leveraged ETFs are most popular with Taiwanese retail investors.)
Of Yuanta's three new ETFS, 00706L and 00707R will track Japanese yen futures via indexes put together by S&P. 00706L will give 2x leveraged exposure to yen futures; 00707R will give 1x inverse.
The third new ETF, 00708L, will track gold futures and give 2x leveraged exposure.
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ESG and the price you pay
A short study on costs and price. It finds that the more ESG-friendly your ETF, the more it costs. Making matters worse, the more radically ESG-friendly an ETF is, the less liquid it tends to be. The common sense about trade-offs between price and ethics hold true.
Fleeing the fee wars, American issuers go for Europe's cash
American issuers like BlackRock and Invesco are going to Europe with an eye to escaping the fee wars at home. With Charles Schwab and Invesco driving fees as low as a handful of basis points who can blame them? But Europe's ETF market is different from the US in many ways. The most important being that Europeans' savings are in cash.
Fidelity vs. Schwab
Fidelity and Schwab have a lot in common. They both run popular online marketplaces for ETFs and they're two of the major movers in the ETF price wars. But now they're going to compete on product as well, with Fidelity listing new ETFs for the first time this year.