John Nyaradi

New ETF Offerings For June

By John Nyaradi on | More Posts By | Author's Website

In spite of continued market turbulence and ongoing news that retail investors have abandoned the U.S. stock market, ETF providers continue bringing new products, managed and unmanaged to the market. In this article we’ll take a look at some of the more interesting new offerings for June.

Invesco PowerShares is the ETF provider that brings the famous QQQQ (NASDAQ:QQQQ), the Nasdaq 100 ETF commonly known as “the Qs,” to the market. But PowerShares also has an innovative lineup of funds and now adds to its managed offerings with a group of small cap ETFs that will be managed by well known sector rotation and relative strength experts, Dorsey Wright Associates.

Dorsey Wright specializes in sector rotation, and these new funds are aimed at small cap funds with the idea of focusing on those sectors that are strongest at any given time.

These small cap funds focus on particular sectors like industrials, materials, consumer discretionary and information technology but all with a slant towards the small cap space.

The new PowerShares small cap sector funds include:

  • PowerShares S&P SmallCap Financials: XLFS
  • PowerShares S&P SmallCap Consumer Staples: XLPS
  • PowerShares S&P SmallCap Health Care: XLVS
  • PowerShares S&P SmallCap Energy: XLES
  • PowerShares S&P SmallCap Materials: XLBS
  • PowerShares S&P SmallCap Utilities: XLUS
  • PowerShares S&P SmallCap Information Technology: XLKS
  • PowerShares S&P SmallCap Consumer Discretionary: XLYS
  • PowerShares S&P SmallCap Industrials: XLIS

Taking a look at iPath Funds, a leader in Exchange Traded Notes (ETNs) and a part of Barclay’s Capital, we find them venturing deeper into the commodity space with a new listing of 19 commodity ETNs.

These new ETNs include exposure to various commodity sub indexes like cocoa, coffee, copper, cotton, along with broader indexes like agriculture, industrial metals and agriculture.

The new funds include:

  • iPath Dow Jones-UBS Precious Metals Subindex: JJPC
  • iPath Dow Jones-UBS Softs Subindex: JJSC
  • iPath Dow Jones-UBS Sugar Subindex: SGAR
  • iPath Dow Jones-UBS Tin Subindex: JJTC
  • iPath Dow Jones-UBS Agriculture Subindex: JJAC
  • iPath Dow Jones-UBS Aluminum Subindex: JJUC
  • iPath Dow Jones-UBS Cocoa Subindex: NIBC
  • iPath Dow Jones-UBS Coffee Subindex: CAFÉ
  • iPath Dow Jones-UBS Copper Subindex: JJCC
  • iPath Dow Jones-UBS Cotton Subindex: BALC
  • iPath Dow Jones-UBS Energy Subindex: JJEC
  • iPath Dow Jones-UBS Livestock Subindex: COWC
  • iPath Dow Jones-UBS Natural Gas Subindex: GAZC
  • iPath Dow Jones-UBS Nickel Subindex: JJNC
  • iPath Dow Jones-UBS Platinum Subindex: PLAC
  • iPath Dow Jones-UBS Grains Subindex: JJGC
  • iPath Dow Jones-UBS Industrial Metals Subindex: JJMC
  • iPath Dow Jones-UBS Lead Subindex: LDC

So again we see how Exchange Traded Funds and Exchange Traded Notes offer investors and traders an almost unlimited palette of offerings from which you can custom build your own strategies and portfolios.

Markets like cotton, coffee and cocoa that previously required investors to dabble in fast moving, risky and sometimes illiquid futures markets are now available in your online brokerage account just like a plain vanilla index fund. Now you can put professional management talent to work for you within reasonably priced exchange traded funds and so combine the best of low cost ETFs with high priced management; therefore it’s easy to see why ETFs continue to grow in spite of ongoing market instability and turbulence.

In times like these, more sophisticated trading strategies and effective asset allocation will very likely be required for consistent success, and the large ETF providers are meeting the demands of the marketplace by continually introducing these innovative new products.

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