Northern Trust launched its 17th exchange-traded fund on Tuesday. The NETS FTSE CNBC Global 300 Index Fund (NYSEArca: MYG) tracks developed and emerging markets stocks by market capitalization size.
It's interesting to note that despite all of the news about consolidation in the ETF industry, all of the new NETS have come out this year. (See related story here.)
The launch of MYG was one of the most highly anticipated in the NETS series, which had some 27 different funds under registration earlier this year. The other big shoe to fall, so to speak, will be the Dow Jones Wilshire Global Total Market ETF.
So far, only two truly all-world ETFs are on the market. The iShares MSCI ACWI (NASDAQ: ACWI) was first in March. It was followed by the Vanguard Total World Stock Index ETF (NYSE: VT) in late June.
The new NETS global ETF, while not as diversified as ACWI or VT (which track indexes with 2,000-plus different names), does take at least 45 of its top stocks from subindexes that are all-cap in nature. Besides the more diversified rivals, MYG faces other existing and more-concentrated global ETFs such as the iShares S&P Global 100 (NYSE: IOO) and the SPDR Dow Jones Global Titans (NYSE: DGT).
The newest NETS ETF covers 32 different countries. As of early last month, that benchmark had about 50% of its constituents based in the U.S. More recent data showed that its three biggest names of late have been Exxon Mobil (3.83%), Procter & Gamble (1.93%) and Microsoft (1.91%). Average market-cap sizes ranged from $511 million to $396 billion.
Top sectors this month are: Financials (16.03%); Consumer Goods (15.64%); Oil & Gas (13.50%); Technology (11.21%) and Health Care (10.93%). The other five all were in single digits in terms of percentages of the total.
According to Northern Trust, MYG's total annual operating expenses will be 0.43% per year. That compares with DGT's 0.50% and IOO's 0.40% expense ratios. The prospectus can be found here.