ETF News Archive

ProShares Introduces First Long/Short RAFI ETF

ProShares recently launched the ProShares RAFI Long/Short (RALS) exchange traded fund.

RALS is the first dedicated ETF that offers a long/short strategy based on Research Affiliate’s pioneering Fundamental Index (RAFI®) methodology. The RAFI approach uses fundamental measures of company size—sales, dividends, cash flow and book value— instead of security price in selecting and weighting securities.

The new ETF seeks to match the performance of the RAFI® US Equity Long/Short Index before fees and expenses.

Short Term TIPS ETF Starts Trading

BlackRock's iShares has launched the iShares Barclays 0-5 Year TIPS Bond Fund (STIP) on the NYSE Arca.

The new exchange traded fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security (TIPS) curve through TIPS with less than five years to maturity. The new fund is the only ETF that offers access to the very shortest end of the curve (zero to one year), and is intended to help investors seek protection against realized inflation, achieve additional portfolio diversification, or express a view on yields.

The new iShares Barclays 0-5 Year TIPS Bond Fund expands the iShares fixed income offering to 33 ETFs, which have seen a high level of interest in 2010 as investors seek income, a hedge against inflation and more precise fixed income exposure in the U.S. and internationally.

Invesco Launches Four KBW Portfolios

Invesco PowerShares recently introduced four new ETF portfolios based on Keefe, Bruyette & Woods, Inc. (KBW) indexes.

The ETFs provide investors with access to the real estate investment trust (REIT), financial services, and property & casualty insurance market sectors.

iShares Adds Russia ETF

BlackRock launched the iShares MSCI Russia Capped Index Fund (ERUS) on the NYSE Arca.

ERUS seeks to track the MSCI Russia 25/50 Index, which is a free-float adjusted market capitalization weighted index designed to measure the performance of equity securities listed on stock exchanges in Russia. The benchmark index is a customized variation of the MSCI Russia Index, designed to cap certain weightings to take into account the investment diversification requirement applicable to U.S. regulated investment companies.

Vanguard Launches International Real Estate ETF

Vanguard has introduced a new international real estate ETF. The Vanguard Global ex-U.S. Real Estate ETF (VNQI) will invest in real estate investment trusts (REITs) and real estate operating companies (REOCs) in emerging markets and developed markets outside the United States.

The new exchange traded fund will track the S&P Global ex-U.S. Property Index, a free-float-adjusted, market-capitalization-weighted index that measures the equity market performance of 425 international real estate securities from 35 developed and emerging markets. VNQI will carry an expense ratio of 0.35%.

REITs and REOCs are companies that purchase office buildings, hotels, and other real estate property. According to Vanguard, these securities offer investors an alternative to direct ownership of real estate properties.

PIMCO Launches Broad U.S. Treasury Index ETF

PIMCO recently launched the PIMCO Broad U.S. Treasury Index Fund (TRSY) to offer investors exposure to the broad U.S. Treasury yield curve via an Exchange Traded Fund.

TRSY aims to achieve the yield, duration and capital preservation inherent in the BofA Merrill Lynch Liquid US Treasury Index.  The liquid basket includes the three most recently issued 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year U.S. Treasury notes and bonds including "on-the-run issues," or those securities most recently issued.

PIMCO designed TRSY as a single ETF providing exposure to the broad U.S.

Rare Earth - Strategic Metals ETF Starts Trading

Van Eck has launched the Market Vectors Rare Earth/Strategic Metals ETF (REMX), the first U.S.-listed exchange traded fund that seeks to give investors pure play exposure to the equities of companies primarily engaged in the producing, refining, and recycling rare earth/strategic metals.

The new exchange traded fund will track the Market Vectors Rare Earth/Strategic Metals Index, a rules-based, modified-capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of publicly traded companies primarily engaged in the producing, refining, and recycling of rare earth/strategic metals. To be included in the index, a company must have the capacity to generate more than 50 percent of its revenue from rare earth/strategic metals-focused efforts.

As of October 13, 2010, the Index included 24 constituents from eight different countries.

ETF Securities Introduces Precious Metals Basket ETF

A new exchange traded fund that provides exposure to a basket of precious metals was recently launched by ETF Securities.

The ETFS Precious Metals Basket ETF (GLTR) is the first US-Based product to offer gold, silver, platinum and palladium under a single ticker.

The objective of GLTR is to reflect the performance of the price of Gold, Silver, Platinum and Palladium, less the Trust’s expenses. The Trust is open ended and is designed for investors who want a cost-effective and convenient way to invest in all four precious metals as well as diversify their precious metal holdings. The product has an gross expense ratio of 0.60% per annum.

The shares represent beneficial interest in the Trust, which holds physical allocated gold, silver, platinum and palladium bullion held in vaults by the Custodian (JP Morgan Chase Bank).

Van Eck Adds China A-Shares ETF

Van Eck has launched a China exchange traded fund that provides investors with exposure to China's A-Shares.

The Market Vectors China ETF (PEK) tracks the CSI 300 index which consists of 300 A-Share stocks listed on the Shenzen or Shanghai Stock Exchange. A-Shares.

According to Van Eck, China’s government has historically limited access to the country’s domestic equity market, also known as the “A-Share” market. Instead, only a small subset of Chinese equities, known as B-Shares, H-Shares, N-Shares, L-Shares, S-Shares and Red Chips had been made available to foreign investors. This subset is only 28% of China’s total equity market by market capitalization.
In recent years, access to the local China A-Share market—72% of China’s equity market—has become more readily available.

TD Ameritrade Introduces Commission-Free ETFs

Clients of TD Ameritrade will now be able to trade 100 exchange traded funds commission-free.

The ETFs eliglble for commission-free trading include funds from Blackrock's iShares and Vanguard.  Among the 100 eligible ETFs are the the iShares S&P 500 Index Fund (IVV) and the Vanguard Small Cap ETF (VB).

ETFs held for less than 30 days will be subject to a short-term trading fee.

See the TD Ameritrade ETF Center for more.