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ETF Watch: September 25 – October 1
By Heather Bell | October 03, 2011

Related ETFs: XAR / XHS / XSW

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NEW LISTINGS

SPDR Family Adds 3 Sector ETFs
State Street Global Advisors just expanded its offering of domestic sector funds with the launch of three new ETFs:

  • SPDR S&P Software & Services ETF (NYSEArca: XSW)
  • SPDR S&P Health Care Services ETF (NYSEArca: XHS)
  • SPDR S&P Aerospace & Defense ETF (NYSEArca: XAR)


Each charges an expense ratio of 0.35 percent.

NEW FILINGS

Van Eck Filing Targets ‘Unconventional’ Energy
A recent filing from Van Eck outlines the firm’s plans for an ETF that will track companies involved in the exploration and production of “unconventional” oil and gas. According to the filing, that includes “oil sands, oil shales, tight sand, coalbed methane and shale gas.” The filing did not include an expense ratio or ticker.

US Commodity Plans Two More ETFs
U.S. Commodity Funds has filed for two more ETFs, one offering an inverse play on natural gas and the other tracking sugar futures. The proposed U.S. Natural Gas Double Inverse Fund (NYSEArca: UNGD) will provide -200 percent of the daily return of natural gas futures contracts, and the United States Sugar Fund (NYSEArca: USSF) will invest in near-month ICE futures contracts on sugar. The funds’ total expenses are projected to be 1.12 and 1.08 percent, respectively.

ProShares Outlines 4 Inflation ETFs
ProShares recently filed papers with the Securities and Exchange Commission on four ETFs tied to inflation:

  • 30yr Rising Inflation ETF
  • 10yr Rising Inflation ETF
  • 30yr Falling Inflation ETF
  • 10yr Falling Inflation ETF


The proposed ETFs are tied to indexes that are long U.S. TIPS and short Treasury bonds in order to approximate the breakeven inflation rates for the 10-year and 30-year time periods. The “Rising” funds track their underlying indexes’ returns, while the “Falling” funds provide the inverse of those index returns on a daily basis. The filing did not include expense ratios or tickers.

First Trust Files For Active Preferred Securities ETF
First Trust has outlined plans for an actively managed preferred stock ETF in a filing with the SEC. The First Trust Preferred Securities and Income ETF will invest mainly in investment-grade preferred securities or similar types of securities. According to the filing, about a quarter of the ETF’s assets will track securities issued by financial sector companies. There was no mention of a ticker or expense ratio in the filing.

iShares Readying Local Currency EM Bond ETF
Based on paperwork filed with the SEC, it looks like iShares is close to bringing an emerging markets local debt ETF to market. The original filing says the iShares Emerging Markets Local Currency Bond Fund will track an index covering “sovereign, local currency” debt from roughly 20 emerging markets. That filing did not mention a ticker or expense ratio.