, meaning those funds that labor below the much ballyhooed $100
million in assets under management watermark, are once again up
to big things. At least some of them are.
Coming off a year in which some sub-$100 million funds
were among the top performers in the ETF
, select low-asset funds are again showing that ignoring an ETF
on the basis of AUM can mean missing out on tidy returns.
Remember, an ETF's AUM total is not the only indicator of its
potential profitability for the fund sponsor. The $100 million in
AUM number also does not take into account an ETF manager's
ability to make money through securities lending, licensing fees
or other external costs related to ETF management.
With that mind, here are some sub-$100 million ETFs that have
been leaders to start the new year.
PowerShares NASDAQ Internet Portfolio (NASDAQ:
) As was
, some investors may perceive PNQI as being "illiquid" because of
an average daily volume number that is below 12,000 shares. The
reality is the least heavily traded of PNQI's top-10 holdings is
) at over 866,000 shares per day.
Housing heavily traded fare such as Amazon (NASDAQ:
), eBay (NASDAQ:
) and Google (NASDAQ:
) ensures PNQI is sufficiently. Being an ETF focused on Internet
names rather the broader technology sector means the fund has not
been dealt a blow by Apple's (NASDAQ:
) woes. That means, including Friday's 1.4 percent gain, PNQI is
up more than six percent year-to-date.
First Trust STOXX European Select Dividend Index Fund (NYSE:
) FDD has an interesting methodology is it starts by screening
firms in the STOXX Europe 600 Index that have a positive five
year dividend-per-share growth rate and a dividend to
earnings-per-share ratio of 60 percent or less,
according to First Trust
Next, possible constituents are sorted by country and ranked
in descending order according to their indicated annual net
dividend yield, so the companies' weights in the index are
determined by yield. Investors should note that FDD is not
eurozone heavy as the U.K. and Switzerland combine for over 54
percent of the fund's weight.
Some investors may gloss over this fund when they AUM of just
over $20.3 million and average daily turnover of less than 19,000
shares. Others will likely get past those metrics and fall in
love with a 30-day SEC yield of 6.36 percent. FDD has gained 2.6
Market Vectors Gaming ETF (NYSE:
) More important than the fact that BJK has "just" $53.7 million
in AUM is the fund's country allocations. That is to say this ETF
is not solely a play on U.S. casinos. In fact, the U.S.
represents just 27 percent of BJK's country weight.
China is next at 24 percent, meaning BJK is a viable options
for investors looking to gain exposure to Macau without having to
commit to a single stock. Exposure to Macau is probably a good
idea. The Chinese territory long ago passed Las Vegas as the
world's top gambling mecca
raked in $38 billion in gambling revenue last
and is expected to see revenue growth of five to 10 percent this
year. As an indicator of its exposure to favorable non-U.S.
gambling trends, seven of BJK's top-10 holdings are not
U.S.-based companies. BJK is up four percent year-to-date and
trading at its highest levels since the second quarter of
For more on ETFs, click
(c) 2013 Benzinga.com. Benzinga does not provide investment
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