Referenced Stocks

New ETFs: Single-Country Small-Caps and Leveraged Biotech

By ETF Trends April 15, 2010, 04:00:02 AM EDT

What's hot? Small-cap and biotechnology, for two things. That's why two major exchange traded fund ( ETF ) providers have funds either launching or in the works to cover both of these popular asset classes.

IndexIQ is gearing up to launch a whole suite of small-cap single-country ETFs. The firm will start a small-cap South Korean ETF today and follow up with others later. A small-cap Taiwan ETF should launch in two weeks, followed by ETFs tracking Hong Kong, Singapore, Canada and Australia. [ Specialty Emerging Market ETFs On a Roll. ]

The small-cap family of ETFs will help investors track specialty areas of emerging and developed nations overseas. They will specifically target small-caps, as they have outperformed the larger-cap counterparts. [ Why Small-Caps Are Outperforming. ]

Biotechnology is not only a bright spot in the U.S. economy, it is an active spot that is waiting for Congress's next move. ProShares , the world's biggest provider of inverse and leveraged ETFs, rolled out a pair of leveraged and inverse ETFs targeting the biotechnology industry, says Oliver Ludwig for Index Universe . [ Feeling Contrary? Here's an ETF for You. ]

The latest ETFs are:

  • Ultra Nasdaq Biotechnology ( NASDAQ : BIB ): Seeks to double the daily returns of the Nasdaq Biotechnology Index.
  • UltraShort Nasdaq Biotechnology (NASDAQ: BIS ): Designed to deliver twice the inverse of the index's daily return.

Please remember that leveraged and inverse funds are designed for more hands-on, risk-tolerant investors, as long-term returns can vary widely from daily objectives. These are not buy-and-hold tools and should be monitored daily. [ 6 Top ETFs of the First Quarter. ]

For more stories about new ETFs, visit our new ETFs category .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, ETFs

Referenced Stocks: BIB, BIS, ETF



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