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Beyond Stocks: ETFs

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Published: Tuesday, 6 Apr 2010 | 5:42 PM ET
Lee Brodie By:

Producer

It seems that investors just love their ETFs.

Just take a look at how much money went into ETFs last year as compared to mutual funds.

EQUITY ETFS VS. MUTUAL FUNDS: 2009 INFLOWS

Mutual Funds -$9 Bln.
ETFs +$70 Bln.
Source: Doug Sipkin, Ticonderoga Securities

And that was last year – amid the all the financial turmoil.

Beyond Stocks: ETFs
Whether ETFs killed the mutual fund star, with Douglas Sipkin, Ticonderoga Securities.

According to data compiled by IndexUniverse.com, total ETF assets stood at nearly $821 billion at the end of March 2010, and total inflows for the month exceeded $20 billion.

What does all this activity mean for money managers?

Douglas Sipkin Of Ticonderoga Securities suggests that all depends on how aggressive the firms have been with ETF products.

"It should mean good things for firms such as BlackRock which acquired iShares from Barclays," he says.

State Street may fit into that category too. They’re among the ETFs that experienced the biggest inflows in March - to the tune of $8.3 billion.

However some firms that have lagged the trend.

Sipkin says "Legg Mason is most at risk because it is largely a US mutual fund business and company is slow to innovate."





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Trader disclosure: On Apr 6, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly Owns (FXE) Puts; Kelly Owns (FRE); Profit And His Firm Own (AAPL); Profit And His Firm Own (RIMM); Profit And His Firm Own (JPM); Profit And His Firm Own (GS); Jon Najarian Owns (AMZN), Is Short (AMZN) Calls; Jon Najarian Owns (SLB), Is Short (SLB) Calls; Jon Najarian Owns (WFT), Is Short (WFT) Calls; Jon Najarian Owns (AA), Is Short (AA) Calls; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (X) Call Spreads; Jon Najarian Owns (NUE) Call Spreads; Jon Najarian Owns (RTP) Call Spreads; Jon Najarian Owns (BHP) Call Spreads; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (RIMM) Call Spreads; Jon Najarian Owns (MBI); Jon Najarian Owns (C) Preferred; Jon Najarian Owns (BAC) Preferred; Jon Najarian Owns (JPM) Preferred; Jon Najarian Owns (MS) Preferred; Jon Najarian Owns (WFC) Preferred; Jon Najarian Owns (AAPL) Call Spreads; Jon Najarian Owns (CMC) Call Spreads; Jon Najarian Owns (FCX), Is Short (FCX) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (PDE); Jon Najarian Owns (RIG), Is Short (RIG) Calls; Jon Najarian Owns (RIMM), Is Short (RIMM) Calls; Jon Najarian Owns (WMT) Preferred; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (JPM); Finerman Owns (PDE); Finerman's Firm And Finerman Own (RIG); Finerman's Firm Is Short (SPY); Finerman's Firm Owns (USO); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WMT)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
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Virtus Investment Partners Owns More Than 1% Of (XLI)

For Brian Kelly
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Kanundrum Capital Owns (CCJ)
Kanundrum Capital Owns (PTV)
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Kanundrum Capital Owns (TXN)
Kanundrum Capital Owns (FNM)
Kanundrum Capital Owns (FRE)
Kanundrum Capital Owns (BX)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short Treasuries
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Pound

For Steve Cortes
Cortes Is Short Treasuries

For Doug Sipkin
Ticonderoga Securities Is A Market Maker In (LM), (TROW), (JNS), (BLK), (BEN)

For Ian Hague
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Is the growing number of ETFs a good thing for money managers? Or will they attract money away from more profitable areas?
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