The exchange traded fund (ETF) industry has added two new funds to the ever-growing fold. State Street is taking on natural resources, while Emerging Global Shares offers exposure to an increasingly powerful consumer base in emerging markets.
The latest ETF from State Street is the SPDR S&P Global Natural Resources ETF (NYSEArca: GNR), which will charge about 40% annually and includes about 90 of the largest natural resources and commodities businesses, reports ETF Guide.
The top countries in the fund are the United States (29.5%), Canada (12.8%), United Kingdom (10.6%) and Australia (8.3%)
GNR will compete with other natural resources ETFs such as the iShares North American Natural Resources Index Fund (NYSEArca: IGE) and the Market Vectors RVE Hard Assets Producers ETF (NYSEArca: HAP).
Also, Emerging Global Shares has introduced the the Emerging Global Shares Emerging Markets Consumer Titans (NYSEArca: ECON). The timing of this fund is auspicious. While consumer spending has been weak in developed countries, emerging market consumers are increasingly flexing their newfound spending muscle.
The largest countries in the fund are Mexico (19.9%), India (16.6%), Brazil (16.1%) and South Africa (14%).
Tisha Guerrero contributed to this article.
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.