Innovation has been a dominant theme in the ETFindustry and this year, 2011, has shaped out to be perhaps the mostexciting one yet. Growth is the other key ingredient for success and theexchange-traded universe has seen an abundance of new product launches;veteran issuers and newcomers alike haveexpanded their product lineups with dozens upon dozens offirst-to-market products, while also making plans for more excitingofferings in the near future [see ETF Launch Center]. With over 1,400 funds to choose from at the moment, investorsare surely looking forward to the expansion of the "toolkit" as the ETFstructure has demonstrated its effectiveness in allowing for easy, andtransparent, access to a multitude of asset classes that were previouslyout-of-reach for many. In light of this, we have picked out sevenintriguing filings that are currently on deck and could hit the marketsometime in 2012 [for more ETF insights, sign up for our free ETF newsletter]:
EG Shares Turkey Small Cap ETF
This exciting proposal, filed by EG Shares, will seek to replicatethe price and yield performance of the INDXX Turkey Small Cap Index. Thefund will fill a void for those seeking targeted exposure to Turkey'srobust economey; this ETF will feature an underlying portfolio thatconsists of 30 small cap equities that are domiciled in Turkey and have amarket capitalization between $100 million and $2 billion. Turkey ishome to a growing service based economy, which separates it from manyother emerging market countries which are dependent on the productionand export of commodities. Rising levels of urbanization along withfavorable demographic trends are two good reasons for why many investorsshould be excited for this proposed small cap Turkey ETF. This new ETFwould allow for? "pure play" exposure to the local economy, whereas thecurrent offering by iShares, the MSCI Turkey Index Fund (NYSEARCA:TUR), holds a top-heavy portfolio dominated by large cap, multinational stocks [see T! urkey ET F Looks Delicious].
USCF Asian Commodity Basket Fund
The issuer behind the popular "contango-killer", the United States Commodity Index Fund (NYSEARCA:USCI),has made plans to beef up its product lineup with an exciting offeringthat is sure to please investors with bullish prospects for Asia.
Theproposed Asian Commodity Basket Fund would include exposure tocommodities that are deemed to maintain systemic importance to Asianeconomies, including the three major behemoths in the region: China,Japan, and India. Booming populations and rapid urbanization have beenimportant drivers of commodity prices in recent years as developingAsian economies have developed an insatiable appetite for naturalresources [see Special Report: In Search Of The Best Commodity ETF]. The construction of the underlying index of commodity futures willtake into account a number of different factors, including: globalproduction/consumption levels in Asian countries, as well as taking intoaccount whether Asian economies are either net importers of exportersof a particular commodity.ProShares USD Covered Bond
Fixed income instruments have seen a surge in popularity as investorsare seeking out safety in anticipation of continuing market turmoil.Amidst the uncertainty, ProShares has laid out plans for a one-of-a-kindbond offering that is sure to please defensive-minded investors; thisETF will be designed to track the USD Covered Bond Index, which iscomprised of U.S. dollar-denominated fixed income securities.The underlying holdings are "Covered Bonds" which are debt instrumentsissued by a financial institution that are secured by a pool offinancial assets, most commonly through a "cover pool" of mortgages orpublic-sector loans [see also International Bond ETFs: Cruising Through All The Options].Covered bonds also distinguish themselves from traditional debtsecurities because the bondholders have a senior claim against the coverpool in the event of a default by the issuing financial in! stitutio n.
Global X Farmland & Timber ETF
Global X, one of the fastest growing ETF issuers, has filed for aspecialized fund that allows for investors to favorably positionthemselves in anticipation of growing demand for food and shelter. ThisETF will track the Solactive Global Farmland & Timberland Index,which consists of the largest and most liquid companies engaged in thefarmland and timberland industry. This ETF could be a good choice forcurrent income investors as the companies that own farmland andtimberland areas tend to pay relatively higher dividends than thebusinesses which produce goods from these locations [see Futures Free Commodity ETFdb Portfolio ].
PIMCO Foreign Currency Strategy ETF
Industry giant PIMCO is planning to roll out an actively-managedcurrency ETF, expanding its product lineup beyond traditional fixedincome offerings.
This intriguing fund will investin the currencies of foreign countries, with a focus on those that arelikely to outperform the U.S. dollar over the long term. To achieve thisobjective, PIMCO will evaluate other currencies based on a number offundamental factors including: relative interest rates, inflation rates,exchange rates, monetary and fiscal policies, trade and current accountbalances, as well as legal and political developments. This ETF mayserve as a valuable diversifying agent in investors' portfolios as itwill include both developed market and emerging market currencies [see Getting Creative With Currency ETFs].First Trust North American Energy Infrastructure Fund
First Trust is planning on launching a sector-specific ETF that mayappeal to conservative investors with a bullish outlook on the energysector [see Energy Bull ETFdb Portfolio]. The First Trust North American Energy Infrastructure Fund wouldinvest in U.S. and Canadian companies deemed to be engaged in the energyinfrastructure segment of the energy and utilities sectors. Theunderlying portfolio will feature ex! posure t o common stocks, depositaryreceipts, master limited partnerships ("MLPs"), MLP I-shares, MLPrelated entities, pipeline and power utility companies, Canadian energyinfrastructure companies and Canadian Energy Infrastructure Trusts("CEITs"). This could be a good choice for investors looking to accessthe "safer" corner of the energy market; firms that own and operateenergy infrastructure, such as pipelines and storage tanks, generaterevenues that are not impacted materially by changes in crude oil ornatural gas prices [see MLP ETFs: Fact And Fiction].
German Hedged Equity Fund
New York-based WisdomTree is planning to bring to market an ETFfocusing on the robust German economy, while at the same time avoidingthe potentially adverse impacts of fluctuations in the currency market.This proposed fund will track the WisdomTree Germany Hedged EquityIndex, which offers investors exposure to German equity markets while atthe time offsetting exposure to fluctuations of the value relative tothe U.S. dollar. The index will consist of German securities that have aminimum market cap of at least $1 billion and the underlying securitieswill be weighted by aggregate dividends. The fund's methodology, whichstrips out exposure to the euro, may appeal to investors who wantexposure to German companies but believe that the euro will be weakeningagainst the dollar [see Three Long/Short Ideas For Euro Zone Debt Drama].
Written By Stoyan Bojinov From ETF Database Disclosure: No Positions
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