ETF providers are lavishing ever more options on
Here's an overview of three fresh funds that started trading
the stock market
KraneShares China A-Shares
KraneShares, an ETF provider specializing in the People's
Republic of China, has built another path to the mainland market.
KraneShares Bosera MSCI China AShare (
) holds a basket of stocks traded in Shanghai and Shenzen that
are accessible only to citizens. The few foreign investors with
access to these markets had to leap over regulatory hurdles.
As the third ETF offering access to China's local markets, KBA
will compete with db X-trackers Harvest CSI 300China A-Shares (
) andMarket Vectors China (
The popular ASHR has swelled to $167 million in assets since
its debut five months ago. It has tumbled 9% year to date, while
its benchmark, iSharesMSCI Emerging Markets (
) fell 6%. PEK, which launched in October 2010, switched to
holding A-shares in December. It's down 10% year to date.
KBA, co-managed by Bosera Investment Management, charges an
annual management fee of 1.1%. That's higher than ASHR's 0.82%
annual fee and PEK's 0.72% charge. KBA's holdings have not been
Economists and analysts alike are very bearish on China, where
bubbles in the credit and real estate markets are seen waiting to
"Uneven development, massive environmental problems, bad bank
loans, reckless nonbank financing that the government cannot
control, and a series of social problems have the government
struggling to find the right mix of economic supercharging and
long-term stability," The Jerome Levy Forecasting Center wrote in
a report Feb. 24. "The tradeoffs are becoming increasingly
unfavorable and frightening, and the financial situation may by
now be too complicated for the government to fully stabilize
conditions in the event of a crisis."
China's projected economic growth of 7% this year would be the
slowest in 30 years.
The Levy center concludes: "If China has a major economic
correction, its falling imports will jolt the global economy and
markets, sending the emerging markets into recession, pulling
down Europe, and ultimately dragging down the U.S. as well.
AdvisorShares introduced Wednesday an ETF of
fat-dividend-paying, fixed-income ETFs.AdvisorShares YieldPro (
) will be managed by the Elements Group, based in Irvine, Calif.,
which also managesAdvisorShares EquityPro (EPRO). It carries a
rather high annual expense ratio of 1.42%. It currently
holdsPowerShares Preferred (PGX), which currently yields
6.45%;AdvisorShares Peritus High Yield (HYLD), with a current
yield of 9%; andVanguard Intermediate-Term Corporate Bond Index
(VCIT), paying 3.2%.
Dorsey Wright Focus 5 ETF
First Trust Advisors, best known for niche ETFs, is rolling
out Thursday an ETF of ETFs that holds First Trust sector or
industry ETFs exhibiting the most relative strength based on
Dorsey, Wright & Associates' ranking system. First Trust
Dorsey Wright Focus 5 (FV) seeks to capture the five ETFs that
are rising the fastest over a given period in hopes of
outperforming the market. It will assess holdings weekly and
replace ETFs that fall off the leaderboard. Holdings will be
rebalanced periodically so that each one is equally weighted.
"DWA believes the design of the index allows them to identify
major themes in the market, have exposure to those sectors whose
price action is superior to others in the universe and eliminate
exposure to those sectors whose price action is sub-par relative
to others in the universe," First Trust said in a statement.
The holdings and management fee have yet to be disclosed. DWA
offers 14 other ETFs through PowerShares based on its relative