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ETF Watch

ETF Watch: Feb. 26 - Mar. 3 [Updated 3/5]
By Heather Bell | February 27, 2012

Related ETFs: EEN / XGC / OTR / OTP / XRO / FXM / FXRU / EWAC / SPHB / ACIM / EMFT


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Editor's Note: As of the start of 2012, ETF Watch has transitioned to daily updates, rather than weekly.

 

FRIDAY, MAR. 2

Van Eck To Mimic Vanguard ETF Structure?
A recent filing from Van Eck Global indicates the firm is looking to launch ETFs that are share classes of the firm's mutual funds. Vanguard already uses a similar structure: All of its ETFs are share classes of larger mutual funds. However, Vanguard has patented its own method, which raises the question of how Van Eck will avoid infringing on that patent. Van Eck already has a wide range of existing ETFs that are not part of any larger mutual funds.

 

THURSDAY, MAR. 1

Pimco Debuts Total Return ETF
On Thursday, Pimco rolled out the Pimco Total Return ETF (NYSEArca: TRXT)—a clone of its well-known Pimco Total Return mutual fund, but in an exchange-traded wrapper. Although both funds are actively managed by Bill Gross, there are three big differences between TRXT and its mutual fund counterpart. For one thing, TRXT charges an annual expense ratio of just 0.55 percent vs. 0.85 percent for the average. The ETF also cannot invest in derivatives, and it must reveal its holdings on a daily basis.

 

TUESDAY, FEB. 28

SSgA Launches Global, EM ETFs
State Street Global Advisors added two more international funds to its SPDRs ETF lineup on Tuesday. The SPDR MSCI EM 50 ETF (NYSEArca: EMFT) tracks an index that covers the 50 largest companies in the MSCI Emerging Markets Index, while the SPDR MSCI ACWI IMI ETF (NYSEArca: ACIM) takes a broader approach, tracking an index that covers 45 emerging and developed markets and nearly 9,000 stocks. EMFT comes with an expense ratio of 0.50 percent, and ACIM charges 0.25 percent.