WisdomTree

The new ETF WisdomTree has in the hopper, the WisdomTree Real Return Fund (NYSEArca: RRF), seeks to give investors long-term returns above the rate of inflation.

Liquidity has flooded the U.S. market, giving rise to investor fears that inflation will soon become an issue. This new fund aims to give investors another way to hedge it, explains Cinthia Murphy for Index Universe.

The fund’s primary goal is for its portfolio to have an average effective duration of two to 10 years, and maturity lengths will vary. The longer the duration of the securities, the more susceptible the fund is to interest rate fluctuations and volatility. (Read on about ways to hedge inflation with ETFs).

RRF will also deliver exposure to commodities, such as energy, precious metals and agriculture. RRF will compete directly with IndexIQ’s newest offering, IQ CPI Inflation Hedged (NYSEArca: CPI). (More about CPI can be found here).

Inflation fears have fueled an increase in products designed to hedge it. PIMCO recently launched the first short-term TIPS ETF, PIMCO 1-5 Year U.S. TIPS Index (NYSEArca: STPZ), and other providers also have TIPS funds. (How TIPS work).

For more stories about TIPs, visit our TIPs category.

• iShares Lehman TIPS Fund (NYSEArca: TIP)

• SPDR Barclay TIPS ETF (NYSEArca: IPE)

OOK Advisors

The Texas Large Companies ETF (NYSEArca: TXF) allows investors access to Texas-based publicly traded companies.  TXF is based on the SPADE Texas Index, a modified market capitalization weighted index that seeks to measure the performance of publicly traded companies headquartered in Texas.

The Spade Index weightings include 63% energy, oil and gas, 8.9 % technology, 6.4% telecommunications, 4.2% consumer and the remaining percentages include companies within the transportation, business services, real estate, industrial, financial, food, utilities and health care sectors.

The economy in Texas is the world’s 11th largest. Analysts predict that it will perform relatively better than most states post-recession. According to Susan Combs for Texas Ahead, in the 12 months ending in September 2009, the state lost 303,700 jobs.

Although Texas was able to survive the real estate crash with which the United States is grappling, construction activity has slowed and property values have room for improvement. Consumer sentiment in Texas remains fairly stable, but it’s 7% lower than one year ago. (More on Oklahoma’s ETF).

For more stories about new ETFs, visit our new ETF category.

PIMCO

• The PIMCO 3-7 Year U.S. Treasury Index Fund (NYSRArca:FIVZ) completes the firm’s lineup of ETFs that cover the key rate segments of Treasury securities. The fund offers exposure to the five-year segment of the curve, have low volatility relative to broader bond markets, and low default risk, as Treasuries are backed by the full faith and credit of the U.S. government.

• The new PIMCO 25+ Year Zero Coupon U.S. (NYSEArca:ZROZ) offers an ETF solution for investors seeking a high level of interest rate sensitivity. ZROZ aims to enable investors to capitalize on expected interest rate movements or efficiently manage long-term interest rate-sensitive liabilities by offering a high duration without using financial leverage.

PIMCO now offers ETFs that span a broad range of Treasury note and bond maturities. This coverage of key Treasury rates is designed to give investors the tools needed to execute yield curve strategies, position for expected changes in interest rates and economic conditions, or maintain long-term allocations toward liquid, high-quality U.S. government securities. (More on PIMCO’s plans).

For more stories about bond ETFs, visit our bond ETF category.

Index IQ’s

Index IQ hosted a conference call that Roger Nusbaum on Seeking Alpha was able to get in on. (Read about their new ETFs here):

• IQ CPI Inflation Hedged ETF (NYSEArca: CPI)
  
• IQ ARB Global Resources ETF(NYSEArca: GRES)

Here are some facts he learned:

• For now the reported inflation environment is benign so CPI can be heavy in T-bills. At times of higher inflation, the fund will allocate more to things like gold, oil and even equities and real estate – possibly meaning REITs.
• The reason for no TIPS exposure in CPI is that it turns out that per their research, TIPS have a very low correlation to the reported inflation rate, which the CPI fund benchmarks against. The other reason cited is that longer-dated TIPs are also very sensitive to interest rates.
• GRES has large weightings in some stocks but larger weightings in others; this is so the fund will give an overall equal weight to eight different industries.
  

For more stories about ETFs, visit our new ETFs category.

Peter Crawford, senior vice president of IMS Client Solutions, says the lack of commission is neither a gimmick, nor a temporary promotion. “We think this is an offer that is yet another example of Schwab challenging the status quo in the industry.”

On top of that, Schwab is tacking on competitive fees for its funds. The fees for its first eight ETFs are mostly lower than those of competing funds. Crawford says that the low fees and commission-free trading should appeal to investors of all types. (Why Schwab’s launch could open doors).

“Whether you’re self-directed or buy-and-hold, trading is unlimited. There’s no cap on size, there’s no minimum,” Crawford says. Commission-free online trading is available to all individual investors at Schwab, the 6,000 independent investment advisor firms who use Schwab and in Schwab retirement accounts that permit trading of ETFs.

The first four of Schwab’s eight ETFs will begin trading tomorrow morning:

• Schwab U.S. Broad Stock Market (NYSEArca: SCHB), 0.08% expense ratio
• Schwab U.S. Large-Cap (NYSEArca: SCHX), 0.08% expense ratio
• Schwab U.S. Small-Cap (NYSEArca: SCHA), 0.15% expense ratio
• Schwab International Equity (NYSEArca: SCHF), 0.15% expense ratio

In December, Schwab will launch four more funds:

• Schwab U.S. Large-Cap Growth (NYSEArca: SCHG), 0.15% expense ratio
• Schwab U.S. Large-Cap Value (NYSEArca: SCHV), 0.15% expense ratio
• Schwab International Small-Cap Equity (NYSEArca: SCHC), 0.35% expense ratio
• Schwab Emerging Markets Equity (NYSEArca: SCHE), 0.35% expense ratio

Charles Schwab, whom Crawford knows personally, is very bullish on the ETF industry. “He’s fired up about ETFs. He’s an ETF investor himself.”

The firm anticipates that as more of the money currently sitting on the sidelines is redeployed back into the markets, a good portion of it will be allocated to ETFs. Studies have shown that advisors are also increasing their awareness of the funds and 38% of them plan to invest more in ETFs in the coming year.

For more stories about the latest ETF launches, visit our new ETF category.

Jefferies

The latest funds from Jefferies are based upon the Thompson Reuters/Jefferies CRB-EQ series of indexes. The equity-based funds track the industrial metals and agriculture indexes, explains Ron Rowland for Seeking Alpha.

The ETFs are:

• Jefferies/TR/J  CRB Global Agriculture Index (NYSEArca: CRBA)
• Jefferies/TR/J  CRB Global Industrial Metals Equity Index Fund (NYSEArca: CRBI)
  

CRBA holds equity securities from global universe of listed companies engaged in the production and distribution of agricultural products, including grains, livestock, fertilizers, chemicals, seeds, traits (seed characteristics attained through genetic modification) and equipment. (Another Jefferies Commmodity ETF launched earlier this month).

CRBI offers investors access to shares of companies across the globe engaged in the production and distribution of base/industrial metals and base/industrial metal products, including copper, aluminum, iron ore, steel, nickel and others. (Where copper and steel prices are going).

Both funds come with a 0.65% expense ratio.

These funds will not be affected by regulations expected from the Commodity Futures Trading Commission (CFTC), because they hold equities and not futures. (How regulations could change commodity ETFs).

For more stories about new ETFs, visit our new ETF category.

Spade Oklahoma Index (NYSEArca: OOK) launched today. The fund focuses in on a basket of companies that are domiciled in the state of Oklahoma. According to ETF Daily News, OOK will invest substantially all of its assets in the securities of companies that have their headquarters or principal place of business located in Oklahoma, or that generate a significant portion of their revenues in Oklahoma.

The fund tracks an index of 29 companies with a market cap of at least $100 million. The top industries in the fund include: drilling and exploration, 26.6%; pipeline, 22.3%; oil and gas, 18.7%; utilities, 13.6%; finance, 7.5%.

Oklahoma has a robust energy sector. For the second year in a row, energy companies led a ranking of the state’s top 50 public companies, The Daily Oklahoman reports.

It is also interesting to note that at least 10% of the fund’s fees are going to Aaron’s Bridge, a charity that helps give treatment options for children in Oklahoma with developmental disabilities. The expense ratio is 0.85%.

Toni Hopper for Duncan Banner reports that tourism is the third-largest driver of the state’s economy. The state showed an increase from $5.3 billion in 2007, to $6.1 billion, of tourism spending. Oklahoma boasts an authentic Midwestern atmosphere, cultural history and a diverse ecosystem.

For more stories about new ETFs, visit our new ETF category.

Van Eck has registered with the Securities and Exchange Commission (SEC) for a new India small-cap ETF, reports Cinthia Murphy for IndexUniverse. The Market Vectors India Small-Cap ETF will seek to reflect the performance of the Market Vectors India Small-Cap Index. Potential investors should note that the fund will invest in the more volatile aspects of an already volatile equities market.

There are currently three ways to gain exposure to India’s economy: WisdomTree India Earnings Fund (NYSEArca: EPI), PowerShares India (NYSEArca: PIN) and iPath MSCI India Index (NYSEArca: INP). PIN and INP have exposure to large-caps; EPI has 20% weighted in mid-caps and the rest of its exposure is in large-caps.

India’s Finance Minister Pranab Mukherjee stated that the economy is recovery, albeit a slow one, according to RTTNews. The Prime Minister is for a rational interest rate policy moving along with fiscal measures to nurture the economy.

The Reserve Bank of India has adopted a soft monetary policy, issuing banking sector funds to aid the economy.

SBI Chairman O P Bhatt expects a 7% expansion in fiscal 2010, while RBI Professional forecasters revised their forecast downward to 6%, according to Outlook India. (Why India is moving up).

On the upside:

• Companies will likely ask banks for working capital loans as the IPO market picks up, which would help revive the economy
• The auto and infrastructure industries are seeing more demand
• Industrial production is up
• Business confidence is on the optimistic side
• Stock markets are strong

On the downside:

• Private consumption demand is slowing
• The first quarter showed a decline in corporate sales
• A weak monsoon season has hurt agricultural output
• Credit growth is low
• Exports have dipped

• PowerShares India (NYSEArca: PIN): up 64.2% year-to-date

• WisdomTree India Earnings (NYSEArca: EPI): up 78.7% year-to-date

Max Chen contributed to this article.

Index IQ

The new ETFs offered by Index IQ are:

• IQ CPI Inflation Hedged ETF (NYSEArca: CPI)
  
• IQ ARB Global Resources ETF(NYSEArca: GRES)

As we enter a period of more inflationary pressures, investors will want to protect their assets against the odds. (Here are some tools to hedge inflation). These two new funds offer a sophisticated approach to hedging the impact of a broad-based rise in price levels as measured by the Consumer Price Index (CPI).

The IQ CPI Inflation Hedged Index, the index underlying CPI, seeks to give investors a hedge against changes in the U.S. inflation rate by providing a “real return,” or a return above the rate of inflation as measured by changes in the Consumer Price Index. (How can investors handle rising prices with ETFs?)

Adam Patti, Index IQ’s CEO, tells  Luisa Beltran for Ignites that the company wanted to have a portfolio of securities that make up different asset classes so that when inflation returns, there will be asset classes to capture it.

CPI is an ETF of ETFs and will have 54% allocated to the iShares Barclays Short Treasury Bond Fund (NYSEArca: SHV), 29% to SPDR Barclays Capital 1-3 Month T-Bill (NYSEArca: BIL), 8% in iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLH), 7.3% in SPDR Gold Trust (NYSEArca: GLD) and 1% in the CurrencyShares Japanese Yen Trust (NYSEArca: FXY).

GRES is the first global resources hedged ETF. The fund seeks to solve the problems associated with the significant overweight in the energy sector inherent in other broad-based commodity products. GRES also provides a hedge against inflation and a real return through exposure to a diversified portfolio of commodity-related equities.

The fund invests in five traditional sectors: livestock; precious metals; grains, food and fiber; industrial metals; and energy. Also found in the index are coal, timber and water.

IndexIQ utilizes a proprietary rules-based methodology to construct the underlying CPI and GRES indexes. The expense ratio for both ETFs comes in at 0.75%.

For more stories about new ETFs, visit our new ETFs category.

Read the disclaimer, as Tom Lydon is a board member of Rydex Funds.

U.S. investors have long awaited a physically-backed palladium funds, and their wishes may finally be coming true.

Don Dion for The Street explains that ETF Securities is planning to launch the ETFS Palladium Trust (NYSEArca: PALL) will be the first U.S. listed fund that holds the physical metal. (Other ways to play palladium before the launch).

The timing for the launch may not be better. China and India are both working to cut down on greenhouse gas emissions. This could directly impact the market for platinum, which is used heavily in catalytic converters, which controls such emissions. More than half of all platinum is used in catalytic converters.

Prices for platinum are now topping $1,300, making it more expensive than gold, reports DaveCarpenter for Associated Press.

Some of the other uses of palladium and platinum include:

• Dentistry: Used to make dental crowns and bridges; used for the treatment of cancer in radioactive form.
• Oil Refining: Used in various stages of oil refining, certain converters are made with palladium.
• Electronics: Used for its chemical stability and electrical conductivity; a reliable alternative to gold in plating. (Can platinum be a substitute for silver or gold in a portfolio?)
• Jewelry: Platinum is a popular metal used in engagement rings and other fine jewelry.

For more stories about precious metals, visit our precious metals category.