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ETF Watch: February 29 – March 6
Written by Matthew Hougan   
Wednesday, 05 March 2008 19:00
  • Page 1: New ETF listings and new ETFs in registration
  • Page 2: ETF industry statistics?including weekly performance update
  • Page 3: The complete list of ETFs (and ETNs) in registration

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NEW LISTINGS

PowerShares "PINS" Down India Market

PowerShares Capital Management became the second ETF company to launch an India-focused ETF in recent weeks, with the debut of the PowerShares India Portfolio (NYSE Arca: PIN) following hot on the heels of last week's launch of the WisdomTree India Earnings ETF (NYSE Arca: EPI). The new PowerShares fund tracks the Indus India Index, fifty companies selected from a universe that includes stocks on India's National Stock Exchange and the Bombay Stock Exchange.

The two ETFs differ in important ways. For starters, the PowerShares fund is cheaper, with an expense ratio of 0.78% against 0.88% for the WisdomTree product. But the two also differ on a sector basis, with the WisdomTree fund heavier on Materials and Consumer Discretionary stocks and the PowerShares fund heavier on Financials, Technology and Telecom Services.

Complete coverage is available from IndexUniverse.com here.

The prospectus is available here.

Fund

Ticker

ER

Asset Class

PowerShares India Portfolio

PIN

0.78%

International, Emerging, Country

NEW FILINGS

ProShares added 18 new funds to its list of funds in registration this week, including:

  • One straight-up strategy fund
  • Five Ultra funds (designed to provide 200% of the daily return of the underlying index)
  • Twelve UltraShort funds (designed to provide -200% of the daily return of the underlying index).

The most curious fund in the new filing is a strategy fund, called the ProShares Barron's 400 ETF. The fund is linked to the Barron's 400 Index, the recently launched flagship index of Barron's magazine. The index relies on the MarketGrader.com stock-picking methodology to select 400 stocks it thinks will beat the market. The fund aims to replicate the index exactly.

The filing is curious for two reasons: First, ProShares made its name on leveraged and inverse ETFs, so the move into a straight "strategy" fund is unusual (although it also has a 130/30 fund in registration); second, SPA ETFs already markets a handful of ETFs tied to the MarketGrader indexes, so it's odd that ProShares netted the licensing agreement for the Barron's 400 fund.

Beyond that, the following Ultra funds:

  • Ultra DJ Wilshire Total Market
  • Ultra Russell 3000
  • Ultra FTSE/Xinhua China 25
  • Ultra MSCI EAFE
  • Ultra MSCI Emerging Markets

The UltraShort Funds are:

  • UltraShort Russell 3000
  • UltraShort DJ Wilshire Total Market
  • UltraShort MSCI Australia
  • UltraShort MSCI Brazil
  • UltraShort MSCI BRIC
  • UltraShort MSCI Europe
  • UltraShort MSCI Latin America
  • UltraShort MSCI Mexico
  • UltraShort MSCI Pacific Ex-Japan
  • UltraShort MSCI South Korea
  • UltraShort MSCI Taiwan
  • UltraShort S&P Europe 350

The funds will charge 0.95% in annual expenses.

The prospectus is available here.

BGI Nifty Fifty

Barclays Global Investors is tossing its hat into the India ETF ring, filing papers for a new ETF linked to the S&P India Nifty 50 Index. The index holds the top 50 companies by market capitalization that trade in the Indian market. Recently, the top three sectors were financials, consumer discretionary and industrials.

In one quirk to the filing, BGI will use a subsidiary based in Mauritius to actually hold the securities. It expects to get a "tax benefit" from operating through the Mauritius-based subsidiary.

Existing ETFs linked to India include the WisdomTree India Earnings ETF (EPI) and the PowerShares India Portfolio (PIN).

The prospectus is available here.



 

Latest comments on this feature

4 Latest comments on this feature.

What a bewildering array of diverse products. I simply can't image even one-half of these surviving should they actually come to market. Things are becoming too complex for the average retail investor in the ETF world.

Posted by ABCameron, on Thursday, 06 March 2008

I agree. More formal training for advisors and invest professionals is need by Ishares

Posted by Al Zimmerman, Reg Prin, on Friday, 07 March 2008

how about floating rate ETF????

Posted by danny, on Friday, 07 March 2008

This may surprise you guys, but I'd like to see even more ETFs. How about one to short commodities in general, or to short base metals, agriculture commodities, etc.? Recent new ones allow me to short gold. How about an ETF for agricultural real estate, which is booming?

Posted by sbenard, on Wednesday, 12 March 2008

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