The new exchange traded fund (ETF) pipeline is ripe, and a bevy of new funds are hitting the market as you read this. Providers know the markets are fertile yet again, and have begun to sow their seeds in the form of ETFs targeted at specific areas of the market that have gone untouched, or have provided a new angle on an old theme.
WisdomTree Asia Local Debt Fund (NYSEArca: ALD) is an actively managed ETF that launched on March 17th and offers exposure to debt of twelve developed and emerging Asian countries (excluding Japan). The fund has a yield of 4.2% and is touted as a way to get “one-trade exposure” to income generation from the world’s fastest growing region. This ETF follows the launch last year of WisdomTree Emerging market Local Debt Fund (NYSEArca: ELD), which has gained $668 million in assets.
Global X S&P/TSX Venture 30 Canada (NYSEArca: TSXV) launched on March 17th, from Global X. This is the first ETF globally targeting companies on Canada’s junior exchange, the TSX Venture. TSXV provides investors with a wide range of commodity exposure via exploration and junior mining companies listed on the TSX Venture Exchange. The fund also may benefit from continued demand for commodities from fast-growing emerging market countries combined with the quantitative easing policy in the US. The companies are in a prime spot for acquisition from larger companies.
IQ Global Agribusiness Small Cap ETF (NYSEArca: CROP) targets small-cap companies related to the agribusiness sector, including crop production and farming, livestock operations, agricultural supplies and logistics, agricultural machinery, agricultural chemicals, and biofuels. This small cap agribusiness segment is positioned to benefit from rising food prices, increasing populations, and the growing demand for alternative fuels, according to Index IQ. The fund is expected to launch on March 22nd. [Agriculture ETFs Soar As Food Prices Hit Record.]
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.