Global X, the exchange-traded fund firm known for its niche
strategies focused on the emerging markets and on commodities,
today launched an equities ETF that's focused on companies in
waste-management industries, again bringing it into competition
with New York-based Van Eck.
Indeed, the Global X Waste Management ETF (NYSEArca:WSTE) looks
quite a lot like the Market Vectors Environmental Services ETF
(NYSEArca:EVX). Global X's WSTE is based on an index
with 28 companies compared with a 22-company benchmark in the case
of Van Eck's EVX. Both indexes hold some of the same companies,
including four of the two ETFs' top-five holdings. The four
companies held by both ETFs among their top holdings are Waste
Management Inc., Stericycle Inc., Veolia Environment, and Republic
Van Eck's EVX, for now, is the cheaper of the two
environmentally focused ETFs with a 0.55 percent net annual expense
ratio, while WSTE costs investors 0.65 percent per year.
WTSE's launch marks the latest competitive tangle the two New
York-based companies find themselves in. For example, they both
offer funds canvassing the Andean region of South America and they
both offer ETFs that zero in on the nuclear energy industry. While
Van Eck remains the bigger of the two firms by far, Global X has
been hauling in assets at a quicker pace. In all of 2010, for
example, Global X's assets about quadrupled to almost $1.3 billion,
while Van Eck's climbed by 25 percent to around $20 billion.
More than half WSTE's portfolio, which concentrates on the waste
management, recovery and recycling industries, is in U.S.
companies. China and France are in the second and third slots, with
almost 15 percent and almost 12 percent, respectively.
Global X has gathered $1.74 billion in assets since it rolled
out its first niche fund in February 2009. Some of its more
successful funds are the $181 million Global X China Consumer ETF
(NYSEArca:CHIQ) and the Global X Uranium ETF (NYSEArca:URA), which
has $240 million in assets.
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