ETF Trends
ETF Trends

The exchange traded fund (ETF) industry has seen a lot of major developments since July 12. ETFs are on the move, and if investors aren’t paying attention, they could miss some opportunities. Jim Wiandt for Index Universe gives five ETF areas to watch:

  1. WisdomTree ETFs
    WisdomTree has been a pioneer in many areas, especially international ETFs. International and emerging-market companies are having great margins, which translates to great dividend payouts for investors. It’ll be interesting to see if WisdomTree can keep rolling out some gems.
  2. Alternative Indexing Strategies
    From the RAFI Index to WisdomTree’s dividend-based weightings to PowerShares, Claymore and First Trust launching essentially active funds, the time for fundamental indexing is upon us. Comparing the performance of fundamental and market-cap indexing will be most interesting over the next five to 20 years.
  3. Hot New Investment Areas
    Ah, it’s so nice to see ETFs one wishes for come into fruition. The timber ETF is on the way, and the new Market Vectors Nuclear ETF (NLR) just launched this month.
  4. Muni-bond ETFs
    What a race it’s been in this area! Barclays, State Street Global Advisors, PowerShares and Van Eck all have been competing to get these products on the market. Lots of choices among ETFs is always nice.
  5. Exchange traded notes (ETNs)
    Expect to see a bunch more of these coming now that Goldman Sachs is in the business.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.