As exchange traded fund launches keep rolling out, S&P Capital IQ researched some of the latest. ETFs that are 3-years-old and under have less track record for investors to check performance against, but the following funds have decent numbers to convince discerning investors.
“While down slightly from the 111 equity ETF new issues in the 12-month period ended July 2011, the most recent one-year figure is up from two periods ago,” S&P said. “We also see greater geographic diversification among the ETFs being issued: while the prior 12-month period saw a 60/40 split between U.S. and non-U.S. equities, the most recent 12 months saw those numbers practically reverse,” Todd Rosenbluth, S&P analyst, wrote in a note.
The Market Vectors Oil Services ETF (NYSEARca: OIH) was rated “Overweight” by S&P Capital IQ. Take note, this ETF was formed using a Merrill Lynch HOLDRS portfolio in 2011. To date ,this is the heaviest traded oil services fund on the market. The fund has $1.1 billion in assets. [Energy ETFs Start Second Half with a Bang]
The Schwab US Dividend ETF (NYSEArca: SCHD) came in next, launched in October 2011, with $400 million in assets. The ETF has fared well due to investor demand for dividend-focused investments and the low expense ratio of 0.17%. [Three Dividend ETFs to Consider]
Another fund that earned the “Overweight” ranking from S&P is the Schwab US Broad Market ETF (NYSEArca: SCHB) has about $1 billion in assets and will turn 3 in November 2012. The last fund in the list to receive an “Overweight” ranking from S&P Capital IQ is the Global X Norway ETF (NYSEArca: NORW). The fund is shy of 2 years old and has gathered $43.7 million in assets. The ETF is tied to the oil service industry, with about 30% of holdings tied to the sector. [ETF Spotlight: Single Country Funds]
The following ETFs are weighted as “Marketweight” and have been trading under 3 years:
- PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV) $2.2 billion in assets; debuted May 2011
- iShares MSCI All Country World Minimum Volatility Index Fund (NYSEArca: ACWV) Debuted October 2011 and has $442 million in assets.
Tisha Guerrero contributed to this article.