The exchange traded fund (ETF) world is large, vast and still growing. As new launches appear, it becomes increasingly challenging to become educated on all of them. Here are five funds that are different from the rest and may be worth a look.
1. EGS Dow Jones Emerging Markets Titans Composite (NYSEArca: EEG): down 5.7% in the last three months. EEG seeks to track the Dow Jones Emerging Markets Titans Composite Index, which is an index composed of a representative sample of 100 emerging market companies deemed by Dow Jones to be leaders in each of 10 sectors. [ETF Spotlight: EEG.]
Emerging Global Shares prides itself on having funds that are pure plays on emerging markets. Until recently, there haven’t been many sector-based funds focusing on emerging markets. This fund is a broad way to get that exposure if you want it.
Emerging markets productivity is improving, are a part of the next investment frontier, have greater economic freedom and account for a large portion of global GDP. [Reasons to stick with emerging markets.]
- Brazil is the top country, with 24.9% of the weighting. China has 24.3%, Russia has 13.4% and India has 13%. Other countries include Mexico, South Africa, Chile and Indonesia.
- Oil and gas is the top sector, weighted at 30.8%; financial is 22.1%; telecommunications is 11.6%; and basic materials is 9.3%.
2. PowerShares Global Progressive Transport (NYSEArca: PTRP): up 69.9% in the last year. PTRP seeks to reflect the Wilder NASDAQ OMX Global Energy Efficient Transport Index. This ETF focuses on companies that promote the advancement of efficient transportation. More countries are becoming environmentally conscious and many have already set aside billions in infrastructure projects. [How climate change can boost transportation ETFs.]
This is a first-of-its kind ETF, focusing on a sector that could have some legs as the global climate change debate (ahem)…heats up.
- Top countries include: United States 28.5%, Canada 11.04%, United Kingdom 8.03%, Taiwan 7.9%.
- Sector allocations: consumer discretionary 19.4%, energy 6.7%, industrials 59.5%, information technology 5.9%, Materials 8.6%.
3. ELEMENTS S&P CTI ETN (NYSEArca: LSC): How the S&P Commodity Trends Indicator provides returns is a simple matter of its construction, which follows trends. This allows commodities to be either long or short (except the energy sector which is long or flat, but never short). Rather than going down with a sinking ship, the indicator can adjust its positions on a monthly basis, depending on how the individual commodities are trending at month’s end.