ETF providers rolled out a batch of funds while closing a raft
of others this month. Here's an overview:
New iShares Core ETFs
Blackrock's iShares unit, the world's biggest ETF provider,
launched four ETFs Monday in its new "Core" family that comes
with rock-bottom annual management fees:
1.iShares Core MSCI Total International Stock ETF charges
0.16% in fees vs. 0.18% forVanguard Total International Stock ETF
). Of 44 countries in the ETF, U.K.-based companies account for
15% of assets, Japan 14%, Canada 8%, Australia 6%, Switzerland
6%, Germany 6%. It holds 6,136 stocks.
2.IShares Core MSCI Emerging Markets ETF charges 0.18%
vs. 0.67% foriShares MSCI Emerging Markets Index (
) and 0.20% forVanguard MSCI Emerging Markets ETF (
With 2,622 stocks, Chinese firms make up 17% of the portfolio,
South Korea 16%, Taiwan 12%, Brazil 12%, South Africa 8%, India
7%, Russia 5%, Mexico 5% and Malaysia 4%. The remaining 14% is
spread among 12 other countries.
3.IShares Core MSCI EAFE ETF charges 0.14% vs. 0.34%
foriShares MSCI EAFE Index Fund (
) and 0.12% forVanguard MSCI EAFE ETF (
). It has 3,169 stocks from 22 developed countries.
4.IShares Core Short-Term U.S. Bond ETF charges 0.12% vs.
0.11% forVanguard Short Term Bond ETF (BSV). Holdings are not
"This allows BlackRock to compete more effectively against
Schwab and Vanguard as cost savings have helped them undercut
iShares in the past," said Christian Magoon, CEO of Magoon
New PowerShares Fund
Invesco PowerShares introduced PowerShares S&P 500 High
Dividend Portfolio (SPHD) Thursday. It tracks the S&P 500 Low
Volatility High Dividend Index. It screens for stocks that have
juicy dividend yields and the lowest volatility. As of Sept. 30,
SPHD had a yield of 4.51% vs. 2% for SPDR S&P 500ETF
The 50-stock portfolio weights utilities at 22% of assets,
consumer staples 16%, financials 13%, telecom 10%, health care
10% and industrials 9%. It charges investors 0.30% of assets a
year for expenses.
SPHD will compete withiShares High Dividend Equity Index Fund
(HDV),SPDR S&P Dividend ETF (SDY) andPowerShares High Yield
Equity Dividend Achievers Portfolio (PEY).
WisdomTree Investments is closing down three thinly traded
ETFs. These will stop trading Dec. 3 and be liquidated on Dec.
1.WisdomTree LargeCap Growth Fund (ROI) with $14.29 million in
2.WisdomTree Dreyfus South African Rand Fund (SZR) with $4.54
million in assets.
3.WisdomTree Dreyfus Japanese Yen Fund (JYF) with $6.56
million in assets.
Niche-ETF provider Global X Funds also shuttered a batch of
thinly traded ETFs. These stopped trading Oct. 18 and will be
fully liquidated Oct. 26:
1.Global X Aluminum ETF with $2.37 million in assets.
2.Global X Auto ETF with $1.96 million in assets.
3.Global X Nasdaq 500 ETF with $1.47 million in assets.
4.Global X Nasdaq 400 Mid Cap with $1.42 million in
So far this year, 89 ETFs have closed down -- the most ever --
according to IndexUniverse.com. That's more than double last
year's total of 38.
Ron Rowland's ETF Deathwatch List on InvestWithAnEdge.com
lists 387 ETFs, about a fourth of all ETFs on the market. They're
the most likely to be folded because of low trading volume and
IPath Long Enhanced MSCI EAFE ETN (MFLA) hasn't traded a
single share since January. It's been on the market for nearly
two years. Owing to poor liquidity, it has a very wide bid/ask
price of 100.00/165.02, as of Monday. That means you would
automatically be down $65.02 a share, or 65%, upon buying it.