Global Conquest

September 21, 2006

iShares continues rollout with the launch of additional global sector ETFs.

Barclay Global Investors (BGI), has launched five new global sector iShares on the New York Stock Exchange.  The ETFs, which began trading September 21, join five other BGI funds that already trade under the iShares S&P Global Sector moniker, and offer cross-border exposure by sector for 48 basis points (0.48% annual expense ratio).

The new ETFs are:

  • iShares S&P Global Consumer Discretionary Sector Index Fund (RXI)
  • iShares S&P Global Consumer Staples Sector Index Fund (KXI)
  • iShares S&P Global Industrials Sector Index Fund (EXI)
  • iShares S&P Global Utilities Sector Index Fund (JXI)
  • iShares S&P Global Materials Sector Index Fund (MXI)

BGI President Lee Kranefuss says, "Global sector investing is a growing trend as advisors and investors realize that there's more to sector investing than focusing only on U.S. companies."

He may be right. BGI's previously launched ETFs in this category have been met with plenty of investor appetite.  The iShares S&P Global Energy (IXC) and Healthcare (IXJ) ETFs, launched in late 2001, boast assets exceeding $700 and $600 million respectively. 

Other members of that ETF family, iShares S&P Global Financial (IXG), Global Technology (IXN), and Global Telecommunications (IXP) have gotten less traction in the market, with total net assets ranging from $95 to $200 million. 

With trends at the large cap end of the spectrum clearly indicating that sector correlation has become every more pronounced, even as international correlations have fallen off to some degree, there is an increasing appeal to getting broad sector exposure to all of the largest company globally.  This is certainly the story in energy and healthcare.  With iShares following the completion model with its ETFs, it makes sense for them to cover all five sectors. Check off one more box in iShares efforts to have ETFs across all investable areas..

 

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