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Tue, May 1, 2012

ETFs Growing Faster Than Mutual Funds


Published on 2012-05-01 05:27:33 - Market Wire
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May 01, 2012 08:20 ET

ETFs Growing Faster Than Mutual Funds

Five Star Equities Provides Stock Research on the SPDR S&P 500 ETF and the Daily Small Cap Bull 3X Shares ETF

NEW YORK, NY--(Marketwire - May 1, 2012) - ETFs have been gaining popularity among investors as a result of the poor performance of actively managed funds. The low costs, transparency, liquidity, and better tax efficiency are some of the major reasons ETFs are being chosen over mutual funds. "That's what makes us the best game in town for investors and it is the reason why ETFs are growing faster than mutual funds," Jonathan Steinberg, founder & CEO of WisdomTree, said in a recent interview with Yahoo Finance. Five Star Equities examines the outlook for Exchange Traded Funds and provides equity research on the SPDR S&P 500 ETF (NYSE: [ SPY ]) and the Direxion Daily Small Cap Bull 3X Shares ETF (NYSE: [ TNA ]).

Access to the full company reports can be found at:

[ www.FiveStarEquities.com/SPY ]

[ www.FiveStarEquities.com/TNA ]

There are approximately 1,500 different exchange traded products, with only 47 actively managed ETFs, the remaining 97 percent fall into the passive, unmanaged or specialty grouping. Steinberg, whose firm runs 14 of the 47 actively managed ETFs, says Exchange Traded Funds are set for "literally trillions and trillions and trillions of future growth." He predicts that eventually active and passive ETF will make up 50 percent of all long-term assets. The number currently stands at 10 percent, which Steinberg says is attracting 50 percent of all new investing money. "The ETF is to the mutual fund, what the internet is to the newspaper," he says.

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SPDR S&P 500 ETF Trust (the Trust) is an exchange traded fund. The Trust corresponds to the price and yield performance of the S&P 500 Index. The S&P 500 Index is composed of 500 selected stocks and spans over 24 separate industry groups. The Fund's investment sectors include information technology, financials, energy, health care, consumer staples, industrials, consumer discretionary, materials, utilities and telecommunication services. Year-to-date the fund is up nearly 12 percent.

Direxion Daily Small Cap Bull 3X Shares (the Fund), formerly Direxion Small Cap Bull 3X Shares, seeks daily investment results of 300% of the price performance of the Russell 2000 Index (the Small Cap Index). The Small Cap Index measures the performance of the small-cap segment of the United States equity universe, and consists of the smallest 2,000 companies in the Russell 3000 Index, representing approximately 10% of the total market capitalization of the Russell 3000 Index. Year-to-date the fund is up over 35 percent.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: [ www.fivestarequities.com/disclaimer ]


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