Would you invest in an exchange traded fund (ETF) that typically invests at least 90% of its total assets in stocks of companies that derive a substantial portion of their revenue from Wal-Mart (WMT)?
According to Dow Jones, the Montvale, N.J.-based company MyShares is launching an ETF that invests in Wal-Mart’s suppliers, reports Margaret Brennan for CNBC’s Retail Detail. Wal-Mart has had a rough summer, but if you think it’s on the rebound, this MyShares Wal-Mart ETF might be right for you. However, if you’ve heard about the "bargaining power" Wal-Mart uses to push down the cost of items purchased from its suppliers, that could influence your decision the other way. The fact that the ETF is "designed to exploit a unique situation…" says a lot.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.