Category No. 8: Best New Commodity ETF – 2014
Awarded to the most important commodity ETF launched in 2014. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognize ETFs that open new areas of the market, lower costs, drive risk-adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after Jan. 1, 2014, are eligible.
Nominee No. 1: Merk Gold Trust (OUNZ)
The Merk Gold Trust is a physically backed gold ETF that provides exposure to spot gold prices. It separates itself from its peers with its "redeemable gold" feature, allowing shareholders the option to exchange shares for delivery of physical gold.
The PowerShares DB Optimum Yield Diversified Commodity Strategy ETF is an old-school commodity ETF in a "next gen" ETF wrapper. PBDC's exposure is similar to that of sister fund DBC, except that PBDC is structured as an open-ended fund and holds its futures contracts through a subsidiary in the Cayman Islands, thereby avoiding K-1 tax reporting requirements of commodity pool ETF like DBC.
This suite of AdvisorShares Gartman gold ETFs targets gold prices against non-U.S. dollar currencies. GEUR targets gold denominated in euros; GYEN targets gold denominated in yen; while GGBP targets gold denominated in pound sterling.
Category No. 9: Best New Currency ETF – 2014
There are no nominees in this category.
Category No. 10: Best New Alternatives ETF – 2014
Awarded to the most important alternatives ETF launched in 2014. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognize ETFs that open new areas of the market, lower costs, drive risk-adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after Jan. 1, 2014 are eligible.
Nominee No. 1: Cambria Global Asset Allocation ETF (GAA)
The Cambria Global Asset Allocation ETF offers a fixed, mixed exposure to the market: 40 percent equity, 40 percent fixed income and 20 percent alternatives, though not all positions are necessarily long. It charges a segment-low fee of 0.29 percent, whereas the typical fee is closer to 1.00 percent.
Nominee No. 2: First Trust Long/Short Equity (FTLS)
The First Trust Long/Short Equity ETF takes both long and short position in U.S.-listed equity with U.S. and foreign exposure. The actively managed funds will typically be 90-100 percent long and 0-50 percent short. FTLS uses earnings quality as a guide to setting its long/short exposure. It aims for balanced, net long equity exposure.
Nominee No. 3: PowerShares Multi-Strategy Alternative (LALT)
The PowerShares Multi-Strategy Alternative Portfolio Fund seeks positive total returns that are uncorrelated with the major asset classes. It does so by holding a mix of long individual equity positions that it believes are undervalued, hedged by short positions in equity index futures, with currency forwards and leveraged interest rate futures rounding out the list.
Nominee No. 4: ProShares Managed Futures Strategy (FUTS)
FUTS tracks an index of commodity, currency and Treasury futures, weighted by risk contribution to the portfolio. Price momentum determines whether the fund takes long or short positions in each contract.
Nominee No. 5: ProShares Morningstar Alternatives Solution (ALTS)
The ProShares Morningstar Alternatives Solution tracks an index of seven alternative ETFs, issued by ProShares, offering diversified exposure to the alternative space. The index allocates to the ETFs with an optimizer that aims to maximize risk-adjusted returns. The optimizer assumes investors have existing positions in stocks and bonds.