• Page 1: New ETF listings and new ETFs in registration
• Page 2: ETF industry statistics including weekly performance update
• Page 3: The complete list of ETFs (and ETNs) in registration

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NEW LISTINGS

Bear Stearns Launches First Active ETF – Finally!

On March 25, a day after JPMorgan Chase raised its takeover bid for the company, the beleaguered Bear Stearns launched the first active exchange-traded fund.

With all the hoopla around the sale of the company, the Bear Stearns Current Yield Fund (AMEX: YYY) opened with little fanfare.

Since the parent company's fortunes turned so dramatically – a day before YYY's initial scheduled March 18 release date, shares of Bear Stearns fell almost 50% – Bear Stearns Asset Management had been noncommittal about whether the first active ETF would even come to market at all.

Besides earning first-to-market honors among what should be a flood of new active fixed-income ETFs, YYY also late in the day was given Standard & Poor's highest bond rating. Even though it's actively managed, the new ETF also received S&P Ratings Service's lowest volatility mark.

The fixed-income ETF is somewhere between a money market fund and a short-duration bond fund. It doesn't follow an index but will invest in U.S. government and corporate debt with short-term durations. The most YYY's weighted average maturity will extend to is one year, but its average should be closer to 180 days, according to the ETF's prospectus.

YYY charges an expense ratio of 0.35%.

Read the prospectus for YYY here.

Rupee and Renminbi Currency ETNs Launched By Morgan Stanley, Van Eck

Morgan Stanley has teamed up with Van Eck Global to launch currency ETNs offering exposure to the Chinese renminbi and the Indian rupee. The Market Vectors - Chinese Renminbi/USD ETN (NYSE Arca: CNY) and Market Vectors - Indian Rupee/USD ETN (NYSE Arca: INR) are the first exchange-traded products to offer exposure to those two currencies. They launched March 17 on NYSE Arca.

The notes are designed to go up in value when the named currency appreciates against the U.S. dollar, and down when the dollar strengthens. The ETNs are underwritten by Morgan Stanley, and Van Eck is the marketing agent. The notes charge 0.55% in annual fees.

To get around government restrictions on foreign currency holdings, the ETNs actually each track an index tied to currency futures. Those futures have historically tracked very closely with the spot price of the currency.

Unlike most currency products, the new ETNs earn interest based on the U.S. Federal Funds interest rate, not local interest rates. Further, they do not pay out interest income; instead, it is added to the share value of the note. Investors must still pay taxes each year on this notional interest, in light of the recent IRS ruling.

Read the prospectus for CNY here.

Read the prospectus for INR here.

U.S. Gets Its First Global TIPS ETF

The first U.S.-based global international Treasury Inflation-Protected Securities ETF launched on March 19, opening exposure for investors to TIPS in 18 different countries and 15 different currencies.

The SPDR DB International Government Inflation-Protected Bond ETF (AMEX: WIP) includes TIPS issued in both developed and emerging foreign markets, with 70% developed exposure and 30% emerging.

WIP has 47 different holdings ­ – mostly A-rated and above in credit quality. The average life of those bonds is listed at 9.06 years, although a portfolio duration total won't be known until the ETF has more of a history.

The fund follows the Deutsche Bank Global Government ex-U.S. Inflation Linked Bond Capped Index. In the past 12 months, that benchmark has returned 20.9%. About 12% of those gains were currency-related, and another 5% was associated with inflation adjustments. Another 2% came from coupon interest payments. Less than 1% came from price appreciation.

The real yield on WIP is around 2.01%, reflecting a worldwide flight to quality as credit markets continue to struggle from the U.S.-led mortgage meltdown.
Since the fund deals with government debt and buys in foreign currencies, it should be very liquid. Some of the ETF's currencies include the euro, yen, pound, Brazilian real and the krona.

The expense ratio on WIP is listed at 0.50%.

Read the prospectus for WIP here.

BGI Launches First True All-World Fund, Others

U.S. consumers looking for a true all-world fund just got one March 28 as Barclays Global Investors launched five new ETFs including the iShares MSCI ACWI Index Fund (NASDAQ: ACWI). It holds 2,884 different stocks from developed and emerging markets in every investable market in the world, and is the first truly global ETF available in the U.S. At the end of 2007, the U.S. had about 42% of the underlying MSCI All-Country index's weighting. Meanwhile, Canada represented 4% and Europe comprised 31%. Emerging markets made up 11% and Japan had 8.5%.

ACWI carries an expense ratio of 0.35%.

BGI also launched a trio of single-country iShares: The iShares MSCI Israel Capped Investable Market Index Fund (NYSE Arca: EIS), the iShares MSCI Turkey Investable Market Index Fund (NYSE Arca: TUR) and the iShares MSCI Thailand Investable Market Index Fund (NYSE Arca: THD). Each charge 0.74% and track foreign markets not previously covered by U.S.-listed ETFs.

Also included in the launch is the iShares MSCI ACWI ex-US Index Fund (NASDAQ: ACWX). That will compete against several others, including the SSgA SPDR MSCI ACWI Ex-US (AMEX: CWI), which tracks the same index and charges the same 0.35% expense ratio.

Read the prospectus for ACWI here.

Read the prospectus for ACWX here.

Read the prospectus for EIS here.

Read the prospectus for TUR here.

Read the prospectus for THD here.

New iPath ETN Tracks Currency Strategy Index

Also out is the iPath Optimized Currency Carry ETN (NYSE Arca: ICI). With an expense ratio of 0.65% per year, ICI tracks the Barclays Intelligent Carry Index. That benchmark uses quantitative modeling to capture the returns of the highest-yielding currencies from G-10 nations. The methodology results in the portfolio taking long positions on some currencies and shorting in lower-yielding currencies.

But it doesn't have any set number of long and short currencies it'll take position in at any given time. As of February, the ETN was shorting the U.S. dollar, the Swiss franc, the Swedish krona and the Canadian dollar. It was long the six other currencies in its basket: the euro, the yen, the British pound sterling, the Australian dollar, the New Zealand dollar and the Norwegian krone.

Read the prospectus for ICI here.

PowerShares Launches Three ETFs

PowerShares launched three new ETFs on April 3 that take unique twists on well-known markets.

The PowerShares Global Nuclear Energy Portfolio (NYSE Arca: PKN) uses an underlying index that employs a hybrid weighting methodology. It equal-weights companies included in two of its five main categories: primary construction and technology. In the three others – technology (equipment and services), utilities and fuels – names are market-cap-weighted, with individual weightings capped at 3%. Segments also are given a set weighting. Reactors and construction each represent 15% of the total while utilities and tech make up 25% apiece. Meanwhile, fuels comprise 20% of the overall portfolio.

The underlying index is provided by WNA Global Indexes, which was formed last year in partnership with the World Nuclear Association, an industry trade group.

PKN carries an expense ratio of 0.75%.

Read the prospectus for PKN here.

The PowerShares FTSE NASDAQ Small Cap Portfolio (NASDAQ: PQSC) invests in the smallest 10% of the broader FTSE NASDAQ Index. Its FTSE NASDAQ Small Cap Index is weighted by market capitalization sizes. The index through March included some 1,159 companies with health care and tech as the leading sectors. The underlying index's top three holdings were Savient Pharmaceuticals (0.37%), Bruker (0.35%) and Cybersource (0.35%).

PQSC charges annual expenses of 0.70%.

The PowerShares NASDAQ Next-Q Portfolio (NASDAQ: PNXQ) does just what its name implies. Its underlying index includes, by market-cap weightings, the 50 securities next in line to replace any of the stocks in the NASDAQ 100. It charges an expense ratio of 0.70%.

Read the prospectus for PQSC and PNXQ here.


NEW FILINGS

Vanguard Files For All-World Fund, With ETF Shares

Vanguard kicked off April with the announcement that it had filed with the Securities and Exchange Commission to launch the Vanguard Global Stock Index Fund. The fund will be available as Investor shares, Institutional shares and ETF shares.

The ETF shares will charge 0.25% in annual expenses, and will have no purchase or redemption fee. That expense ratio undercuts the new offering from Barclays Global Investors by 10 basis points (0.10%); the iShares MSCI ACWI Index Fund (NASDAQ: ACWI) charges 0.35%.

The new Vanguard fund will track the FTSE All-World Index, an index that covers 2,900 stocks from 48 countries.

Until the launch of ACWI, there had not been a broad global ETF that covered both emerging and developed markets, although another “all-world” ETF from Northern Trust is also currently in registration.

Read the prospectus here.

More International iShares In Registration

The iShares ETF family recently filed with the SEC to create a new crop of international ETFs covering specific countries, regions and sectors.
The proposed iShares tracking regional and country indexes include the iShares MSCI Emerging Markets Eastern Europe Index Fund, the iShares MSCI All Country Asia ex Japan Index Fund, and the iShares FTSE China (HK Listed) Index Fund.

The funds are interesting choices. The Eastern Europe fund will go up against a similar fund offered in the SPDRs family, the SPDR Emerging Europe ETF (AMEX: GUR).

Meanwhile, the Asia ex-Japan ETF will track an MSCI index that includes roughly 560 stocks from 11 developed and emerging countries in Asia. With Japan’s economy virtually moribund for such a long time, funds that exclude it but include Asia’s other rapidly developing economies could prove quite popular with investors.

While the iShares family already includes the iShares FTSE/Xinhua China 25 Index Fund (NYSE Arca: FXI), the FTSE China (HK Listed) Index underlying the fund in registration is broader, with roughly 80 components, including H shares and “red chip” stocks.

The international sector ETFs in the latest crop of filings includes four funds, each tracking an international thematic index from S&P. The iShares S&P Global Clean Energy Index Fund tracks an index of 30 companies involved in clean energy production or the provision of clean energy equipment and technology providers. With oil prices continuing to rise and environmental concerns increasing, these types of companies have been getting more attention from investors. Meanwhile, the iShares S&P Global Nuclear Energy Index Fund will track an index of 20 companies involved in the nuclear energy industry. The iShares S&P Global Timber and Forestry Index Fund covers 25 companies involved in all aspects of the timber industry. All three funds will go up against competing first-to-market ETFs.

The final fund, the iShares S&P Emerging Markets Infrastructure Index Fund, will likely be the first of its kind. It covers a unique area that seems like it has a lot of potential – with emerging markets displaying record growth lately, what better way to capture a piece of that than by investing in the very companies that are enabling that growth? The fund will track an index of 30 stocks operating in the fields of utilities, energy and transportation infrastructure.

Read the prospectus for the iShares MSCI Emerging Markets Eastern Europe Index Fund here.

Read the prospectus for the iShares MSCI All Country Asia ex Japan Index Fund here.

Read the prospectus for the iShares FTSE China (HK Listed) Index Fund here.

Read the prospectus for the iShares S&P Global Clean Energy Fund here.

Read the prospectus for the iShares S&P Global Nuclear Energy Index Fund here.

Read the prospectus for the iShares S&P Global Timber and Forestry Index Fund here.

Read the prospectus for the iShares S&P Emerging Markets Infrastructure Index Fund here.

Claymore Seeks To Brave The Frontier

Claymore has filed with the SEC to create an ETF tracking frontier markets. Currently, there are no frontier ETFs trading on U.S. exchanges, although the area has been getting more attention lately and frontier market ETFs recently launched in Europe.

The Claymore/BNY Frontier Select DR Index Fund would track an index from the Bank of New York that includes 26 companies selected from a universe that covers nearly 40 frontier markets. The index includes only companies with float-adjusted market capitalizations of more than $100 million that have depositary receipts that trade on U.S. exchanges or the Luxembourg Stock Exchange.

Read the prospectus for the Claymore/BNY Frontier Select DR Index Fund here.



ETF Data Watch

Note: These numbers refer only to U.S. ETFs and ETNs. Data as of March 28, 2008, from the American Stock Exchange.

Pure Numbers
Total number of ETFs listed in the U.S.: 659
Total number of ETNs listed in the U.S.: 39
Total ETF assets: $578 billion
Total number of ETFs and ETNs in registration: 472

ETFs Filed – By Fund Company

There are currently 450 ETFs and ETNs with prospectuses filed at the SEC.
You can click on any fund and link directly to the prospectus.