Friday, August 2, 2013

ETFG Utility Goes Beyond ETFs

Bank of America says they serve 57 million customers and when you inundate that many Americans with constant niggling fees you should not be surprised to become an easy target for enterprising government officials looking for scalps.  In a filing yesterday, the bank disclosed it is under investigation by the SEC, Justice Department and New York Attorney General.  The investigations that seem to come as frequently as their innovative fees have forced the bank to set aside more than $42 billion in litigation expenses. Maybe that is a small price to pay for an otherwise profitable strategy, or maybe you want to avoid owning a company in constant warfare with customers and regulators.  ETF Global® makes it easy for you to see which exchange traded products are exposed to any company.

Entering BAC in the upper right search box (hit your escape key to eliminate the drop down choices containing those letters) brings up those products that hold shares in the bank or track an index containing it as a constituent.  Of the 77 products that appear on BAC’s Equity Grey Market Report, 21 of them fall in that second category and will not appear on any other sites you might use for such information.   Only ETF Global® has quantified the exposure of individual equities to the leveraged and inverse universe of ETPs.  People debate how these products ultimately get hedged against their underlying securities but you do not need to have an opinion on that to want to know the potential exposure.  In the summary section we differentiate between long and short products and we weight by the applicable leverage factors.  You can see that more than 3% of Bank of America’s market capitalization is exposed to ETPs.

Under the Research button, we have also compiled the S&P Grey Market Report summarizing all 500 individual equities in one place.  ETFGsm Equity Grey Market data is example of why even managers who have yet to embrace ETFs use ETF Global®.  Our Quant scores and Risk and Reward Ratings also provide guidance on their sector and regional allocations, as do our indices.  There are no financial funds in the top 50 today and only 4 of the top 10 are US funds with Asia continuing to score well, such as today’s 10 Green Diamond GXC.  Thanks for reading and have a nice weekend.

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