Daily ETF Watch: 4 Funds Launch

October 29, 2015

Four funds launched today from two different issuers. WisdomTree rolled out three very different funds, and State Street Global Advisors launched a new China fund.

WisdomTree Funds

WisdomTree launched its funds on the BATS exchange.

The WisdomTree Europe Local Recovery Fund (EZR) is designed to take advantage of the European recovery by investing in Europe-based companies that derive more than 50 percent of their revenue from within Europe. Shares of companies in the fund’s underlying index are traded in euros and listed on exchanges in Germany, France, the Netherlands, Spain, Belgium, Finland, Italy, Portugal, Austria or Ireland. The fund comes with an expense ratio of 0.48 percent.

Meanwhile, the WisdomTree Strong Dollar Emerging Markets Equity Fund (EMSD) tracks an index that targets emerging market companies that are likely to do well in an environment in which the U.S. dollar is strengthening. The component companies must derive at least 15 percent of their revenues from the U.S. and have a market capitalization of at least $200 million. EMSD charges an expense ratio of 0.58 percent.

Finally, the WisdomTree Global ex-U.S. Hedged Real Estate Fund (HDRW) is essentially a version of the $113 million WisdomTree Global Ex-U.S. Real Estate ETF (DRW | B-78), a dividend-weighted fund that tracks real-estate companies in emerging as well as developed markets, excluding the U.S. HDRW charges an expense ratio of 0.43 percent, less than the 0.58 percent charged by DRW.

New SPDR ETF

SSgA rolled out the SPDR MSCI China A Shares IMI ETF (XINA) on the NYSE Arca. The fund tracks a total-market, cap-weighted index designed to represent 99 percent of the market capitalization of the investable A-shares universe, according to its prospectus. XINA appears to be the first fund to cover such a broad swath of the A-shares market.

The fund comes with an expense ratio of 0.65 percent.

Global X Targets Niches

A recent filing from Global X outlines its plans to launch four thematic ETFs. The four funds will track indexes that are weighted by modified market capitalization.

According to the prospectus, the Global X Big Data ETF will target companies that offer tools and services related to the maintenance, management and usage of large amounts of data.

The Global X FinTech ETF will focus on companies that provide software and technology to the financial services space such as electronic trading and payments processing.

The Global X Healthy Lifestyle ETF will invest in companies that help their customers to live healthily through the operation of gyms and health facilities, the sale of healthy or organic foods and athletic gear and other business activities.

Finally, the Global X Internet of Things ETF will target companies involved in the “Internet of things” space, which is basically connected devices that can network with each other. The companies are involved in providing products and services in the areas of wearable technology, home automation and sensors, among others.

Global X has delved into thematic spaces before. Some, like the Global X Social Media ETF (SOCL | B-40), which has $77 million in assets under management, have done quite well, but others have been closed without gathering much in the way of assets. Funds targeting the waste management, fishing and farming industries closed in early 2012 after launching in 2011.

The latest filing did not include tickers or expense ratios.


Contact Heather Bell at [email protected].

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