If you’ve been disappointed by Wal-Mart’s (WMT) lagging stock price but you still long to get in, there’s a solution at hand in the form of an exchange traded fund (ETF). FocusShares ISE-REVERE Wal-Mart Supplier Index Fund (WSI) is a fund that allows investors to track the stock of Wal-Mart’s suppliers. WSI launched today on NYSE Arca.
The product has been in back-testing for three years, and finally begins trading today. In the tests, the ETF has "significantly outperformed" Wal-Mart’s stock and has instead correlated more closely with the superstore’s sales.
The fund was assembled through a "rigorous screening process" of all public companies that cite Wal-Mart as a customer. Those companies then were evaluated further until they were winnowed down to a basket of 30 stocks. Some of the stocks include Del Monte Foods (DLM), Hanesbrands (HBI), Kellogg (K) and Mattel (MAT).
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.