ETF Watch
ETF Watch: August 15 – August 21
August 21, 2008
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Note: Want to receive an email notice as soon as ETF Watch is posted? Just click here to subscribe. Barclays Global Investors launched the iShares MSCI All Country Asia ex-Japan Index ETF (NasdaqGM: AAXJ) on August 14. The fund provides exposure to nine Asian markets: China, Taiwan, Hong Kong, India, Thailand, Indonesia, Malaysia, South Korea and Singapore. It blends developed and emerging markets and, as its name would imply, excludes Japan. The developed markets, South Korea and Singapore, account for nearly 28% of the underlying MSCI benchmark's constituents, with China the largest country in terms of representation at roughly 23% of the index. AAXJ tracks 218 of the 559 constituents in the MSCI All-Country Asia ex-Japan Index. It charges an expense ratio of 0.74%.
NEW FILINGS Global X Management, a would-be ETF provider, has filed for at least one fund. The Global X FTSE Nordic 30 ETF would track the FTSE Nordic 30 Index, which is a subset of the FTSE All-World Nordic Region Index and covers the markets of Sweden, Denmark, Norway and Finland. Although the proposed ETF does not appear to have any unusual characteristics, it could end up with the distinction of being the first Nordic ETF to hit the market. There aren’t any trading on U.S. markets currently, and there don’t appear to be any others in registration. Read the filing for the fund here.
OTHER NEWS PowerShares Quashes 6 Funds In Registration Invesco PowerShares has filed “amendment withdrawals” with the SEC on a number of its ETFs in registration with the explanation that it has decided not to proceed with the registration of the funds. The filings affect six different funds. The PowerShares Dynamic Brand Name Products Portfolio, PowerShares REIT Preferred Portfolio, PowerShares Value Line 400 Portfolio, PowerShares Autonomic Allocation Research Affiliates Portfolio, PowerShares India Tiger Portfolio and PowerShares NASDAQ Dividend Achievers Portfolio will not be brought to market. Interestingly, PowerShares already has a fund covering the Indian market, so the firm apparently decided against offering a similar fund. The PowerShares India Portfolio (NYSEArca: PIN) launched in March. The group of funds by no means represents the bulk of PowerShares’ ETFs in registration though, and most of the targeted unhatched funds have languished in registration for some time. There are still plenty more PowerShares ETFs waiting in the wings for their launch dates.
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FINRA’s Wrongheaded Ruling On Backtesting
A FINRA ruling on backtesting for new ETFs serves as a reminder of how not to invest.KraneShares China Bond ETF To Stand Out
In the young and as-yet-undeveloped ‘dim sum’ bond market, the upstart ETF firm KraneShares looks for a niche.VXX May Be Losing Its Hedging Mojo
Using VIX-based ETPs to hedge equity positions has never been easy or cheap. Is it now less effective too?
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The SEC And Gold Miners
Paul and Ugo discuss the rumors surrounding the SEC's new approach to passive ETFs and whether investors have learned any lessons from the recent moves in gold.
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