ETF Trends
ETF Trends

What’s hot? Small-cap and biotechnology, for two things. That’s why two major exchange traded fund (ETF) providers have funds either launching or in the works to cover both of these popular asset classes.

IndexIQ is gearing up to launch a whole suite of small-cap single-country ETFs. The firm will start a small-cap South Korean ETF today and follow up with others later. A small-cap Taiwan ETF should launch in two weeks, followed by ETFs tracking Hong Kong, Singapore, Canada and Australia. [Specialty Emerging Market ETFs On a Roll.]

The small-cap family of ETFs will help investors track specialty areas of emerging and developed nations overseas. They will specifically target small-caps, as they have outperformed the larger-cap counterparts. [Why Small-Caps Are Outperforming.]

Biotechnology is not only a bright spot in the U.S. economy, it is an active spot that is waiting for Congress’s next move. ProShares, the world’s biggest provider of inverse and leveraged ETFs, rolled out a pair of leveraged and inverse ETFs targeting the biotechnology industry, says Oliver Ludwig for Index Universe. [Feeling Contrary? Here’s an ETF for You.]

The latest ETFs are:

  • Ultra Nasdaq Biotechnology (NASDAQ: BIB): Seeks to double the daily returns of the Nasdaq Biotechnology Index.
  • UltraShort Nasdaq Biotechnology (NASDAQ: BIS): Designed to deliver twice the inverse of the index’s daily return.

Please remember that leveraged and inverse funds are designed for more hands-on, risk-tolerant investors, as long-term returns can vary widely from daily objectives. These are not buy-and-hold tools and should be monitored daily. [6 Top ETFs of the First Quarter.]

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

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.