NEW ON THE ETF FRONT
Hey, you all know I am a huge fan of ETFs, so that’s why whenever I hear about any new ETF offerings I feel I need to bring the news to your attention.
The first batch of new ETF offerings comes from Claymore Securities, a newbie in the field of ETFs. Last month, the firm launched a quintet of ETFs on the American Stock Exchange, with their salient feature being that they are nearly "actively" managed, although Claymore representatives stop short of calling their ETFs actively managed. Let’s take a quick look at each one.
The Claymore/Sabient Insider (NFO) is designed for investors who like to follow company insiders. Many people believe that individuals on the inside, i.e., those exposed to company secrets such as senior management or directors, can signal undisclosed good or bad news when they buy or sell unusual amounts of their own company’s shares. Determining what is an unusual amount usually requires some filtering, and that filtering process is what you get with NFO.
Finally, there is the Claymore/BNY BRIC (EEB), which gives investors exposure to large developing countries with tremendous potential for expansion: Brazil, Russia, India and China, hence the acronym BRIC. These countries are for investors who aren’t averse to high risk in the pursuit of high reward. If this describes you, then fine. More conservative investors should beware.
Not to be outdone by Claymore, ETF giant Barclays also has rolled a few new ETFs in recent weeks, adding to its industry-leading list. Here’s a quick look at each:
The iShares S&P Global Materials (MXI) ETF — consisting of approximately 76% foreign stocks — seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Materials Index.
The iShares S&P Global Consumer Discretionary (RXI) ETF — consisting of about 50% foreign equities — is heavily exposed to auto stocks. It seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Consumer Discretionary Index.
The iShares S&P Global Consumer Staples (KXI) ETF is composed by approximately 44% foreign equities. This dividend-rich ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Consumer Staples Index.
The iShares S&P Global Industrial (EXI) ETF is 43% foreign and has a wide variety of big-cap multinationals. The ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Industrials Index.
The iShares S&P Global Utilities (JXI) ETF is about 60% foreign and invests in some of the biggest energy firms around the world. This ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Global Utilities Index.
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
