Global X rolls out another niche strategy that competes with Van Eck, this one focused on trash.
Renewable energy ETFs were all the hype in the summer of 2008; crude oil prices topped $140 a barrel and investors searched for alternatives. The hype didn’t last, however. Crude prices crashed to the mid-$30s during the financial crisis later that year. The two largest green energy ETFs at the time, the PowerShares WilderHill Clean Energy ETF (NYSE Arca: PBW) and the Market Vectors Global Alternative Energy ETF (NYSE Arca: GEX), both plummeted over 70 percent in share price. PBW’s assets under management (AUM) also fell, from $1.5 billion to under $500 million, while GEX’s AUM fell from $300 million to under $32 million.
To sell or to buy in the wake of the worst earthquake in Japan’s history?
Global X, the New York-based exchange-traded fund firm known for its developing-market and natural resources funds, filed paperwork to market 12 ETFs, including country-specific strategies, dividend-seeking ETFs as well as off-the-beaten-path funds such as a potash ETF.
Rydex Adds To Equal-Weighted Lineup
Rydex greatly expanded its lineup of equal-weighted ETFs in December and January with the launches of six ETFs tracking equal-weighted versions of popular indexes. The firm already offered 10 ETFs using an equal-weighted approach, the largest of which is the Rydex S&P Equal Weight ETF (NYSE Arca: RSP), with more than $3 billion in assets under management.
The new funds and their expense ratios are:
Rising oil prices and growth make energy ETFs worth looking at—for now.