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Current DateTime: 09:28:45 24 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Mar.26
2:41 PM ET
Thursday, 26 Mar 2009
Gold and Bonds: The Hottest ETFs This Year

Exchange traded funds (ETF) have recently been in high demand. According to Anthony Rochte, senior managing director at State Street Global Advisors, ETF volumes are “up at almost 38 percent of all U.S. traded equities through the first quarter.”

In 2008, ETFs accounted for over 25 percent of all equity trading volume, Rochte told CNBC. “But given the market as of late, we’ve seen more demand—over 30 to 35 percent.”

What’s Hot:

In particular, Rochte said that the SPDR Gold Trust [GLD  Loading...      ()   ] is driving the commodities trade. In terms of volume, it has grown from “21 billion a year into over 33 billion as of last night.”

Aside from gold, Rochte said there is also a high demand for fixed income ETFs.

“Two years ago, there had only been five bond ETFs in the entire industry—today, there’s over 60,” he said. "So whether it’s high yield, or treasurys, or munis, we’ve seen a lot of demand for fixed income ETFs.”

Rochte also said the SPDR S&P 500 Dividend ETF [SDY  Loading...      ()   ] index is looking optimistic.

“If you looked at the SPDR S&P 500 Dividend ETF, it’s actually 50 dividend paying stocks of the S&P 1500—which is a broad based basket. It actually outperformed the S&P by almost 14 percent last year.”

Disclosure:

Disclosure information for Anthony Rochte was not immediately available.

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Key Fixed Income ETFs:

iShares S&P New York Municipal Bond Fund [NYF  Loading...      ()   ]

Vanguard Total Bond Market ETF [BND  Loading...      ()   ]

PowerShares Insured Municipal Bond Portfolio [PZA  Loading...      ()   ]

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© 2009 CNBC.com

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