The Trouble With Niche ETFs

The Wall Street Journal ran a piece arguing some new ETFs are so narrowly focused they offer dubious value. I tend to agree. Analysis

Niche ETFs May Not Be Doomed

It surprises me how esoteric some funds are these days. But the success of some of these niche sector funds surprises me too.

ETF Report

 Are ETFs Wagging The Market?

As ETFs grow in popularity, they have branched out from their humble beginnings tracking the large, liquid stocks of the S&P 500 and into more remote corners of the market. ETFs now cover everything from Brazilian small-caps to rare earth metals miners. This means unprecedented exposure for U.S. investors—a boon by most measures—but also creates new problems. How do less-liquid markets respond to the tide of eager U.S. investor money flowing in through ETFs?

ETF Report

 Strategic Metals: Worth The Hype?

ETF investors have been piling money into commodities ETFs—just look at GLD (the SPDR Gold Shares fund), currently the second-largest ETF after SPY (the SPDR S&P 500 fund), with over $55 billion in assets. But savvy (or bored) investors are looking further afield in commodities than just gold and oil. To meet this need, ETF issuers are creating all sorts of sector-specific ETFs for investors. Two ETFs in particular, LIT (the Global X Lithium fund) and REMX (the Market Vectors Rare Earth/Strategic Metals fund), are now giving ETF investors the ability to play the strategic and rare earth metals sector—if you’re convinced such a thing exists.

ETF Report

 ETFs: 2010 And The Outlook For 2011

As this issue of ETFR goes to press, the U.S. ETF industry just cleared a major milestone: Total industry assets under management have reached the magic $1 trillion barrier. Pop the champagne corks!

Journal Of Indexes


Vanguard Debuts Russell-Based ETFs
Vanguard launched seven new funds based on Russell indexes in September as part of an ambitious expansion plan to have a broad lineup of Vanguard products that give different advisers who favor different indexes the tools they need. In keeping with Vanguard’s aggressive stance on expenses, the new funds carry annual expense ratios ranging from 0.12 percent to 0.20 percent—priced to undercut its main competitor, iShares.

ETF Report

 Van Eck Debuts First-Ever Rare Earths ETF

In late October, Van Eck Global rolled out the Market Vectors Rare Earth/Strategic Metals ETF (NYSE Arca: REMX), which invests in companies engaged in the production, refining and recycling of rare earth and strategic metals and minerals.

Features and News

Van Eck Rolls Out Rare Metals ETF

Van Eck launches a rare metals ETF in the latest sign of increased competition in the space.