AROUND THE WORLD OF ETFs

June 27, 2011

 

Global X Rolls Out Waste Management Fund

Global X recently launched an equities ETF that's focused on companies in waste management industries, again bringing it into competition with New York-based Van Eck.

Indeed, the Global X Waste Management ETF (NYSE Arca: WSTE) looks quite a lot like the Market Vectors Environmental Services ETF (NYSE Arca: EVX). Global X's WSTE is based on an index with 28 companies, compared with a 22-company benchmark in the case of Van Eck's EVX. Both indexes hold some of the same companies.

Van Eck's EVX, for now, is the cheaper of the two environmentally focused ETFs, with a 0.55 percent net annual expense ratio, while WSTE costs investors 0.65 percent per year.

DB, PowerShares Roll Out Sovereign Debt ETNs

In late March, Deutsche Bank rolled out three pairs of ETNs focused on German, Italian and Japanese sovereign debt futures that serve up single- and triple-long exposure to their respective indexes. The German bank uses Invesco PowerShares for marketing of the notes.

The ETNs include:

The triple-exposure securities rebalance monthly, the same as all leveraged DB PowerShares products.

The single-exposure ETNs each have an expense ratio of 0.50 percent, while the triple-exposure products have expense ratios of 0.95 percent.

iPath Unveils 18 Commodity ETNs

iPath rolled out 18 new ETNs in late April focused on commodities and designed to protect returns by seeking exposure that minimizes contango.
Each of the new iPath Pure Beta Commodity ETNs was constructed around the concept of providing the best proxy for the average price return of the front-year futures contracts for each commodity in the index, while avoiding parts of the futures curve that are subject to persistent market distortions, the company said in a press release. The underlying indexes use the Barclays Capital Pure Beta Series 2 methodology.

The list of products includes a note tracking a "Pure Beta" version of the S&P GSCI, the iPath Pure Beta S&P GSCI-Weighted ETN (NYSE Arca: SBV), as well as another note—the iPath Pure Beta Broad Commodity ETN (NYSE Arca: BCM)—tracking the Barclays Capital Pure Beta Broad Commodity Index. The remaining notes track subsets of the latter, including seven sectors and nine individual commodities.

All the new Pure Beta ETNs, and a separate 19th note introduced at the same time—called the iPath Seasonal Natural Gas ETN (NYSE Arca: DCNG)—come with a 0.75 percent annual expense ratio.

The Q's Lose A 'Q'

Invesco PowerShares changed the ticker symbol on its popular Nasdaq-100 ETF, the PowerShares QQQ Trust (Nasdaq GM: QQQ) to "QQQ" from "QQQQ" so that the fund's name matches its ticker.

The change became effective on March 23, 2011. PowerShares emphasized in a prepared statement that everything else about the funds would remain exactly the same, including its listing on the Nasdaq exchange.

WisdomTree Debuts Asian Bond ETF

WisdomTree Investments debuted an actively managed Asia ex-Japan bond fund denominated in local currency in mid-March.

The WisdomTree Asia Local Debt Fund (NYSE Arca: ALD) will cast a wide net, covering China, Hong Kong, India, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand as well as Australia and New Zealand. The fund deliberately excludes Japan, while Vietnam's poor fundamentals mean that it didn't make the cut for inclusion.

ALD doesn't use a benchmark; rather, its constituents are chosen by a WisdomTree investment committee focused on a number of parameters in a given country, including liquidity, debt-to-GDP ratio, foreign reserves, inflation and unemployment. The fund has an expense ratio of 0.55 percent.

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