Credit: Shutterstock photoGlobal X Funds launched two domestic stock ETFs and one focused on Greek stocks. The Global X NASDAQ 500 ETF (NasdaqGM: QQQV), Global X NASDAQ 400 Mid Cap ETF (NasdaqGM: QQQM) and the Global X FTSE Greece 20 ETF (NYSEArca: GREK).
QQQV is linked to the NASDAQ 500 Index, which measures the performance of 500 of the largest domestic and international non-financial securities listed on NASDAQ based on market capitalization.
QQQM follows the NASDAQ 400 Index, which tracks the performance of the top 400 mid-capitalization domestic and international non-financial securities listed on NASDAQ.
The largest Nasdaq-focused ETF by assets is the PowerShares QQQ Trust (NasdaqGM: QQQ), which follows the top 100 non-financial stocks by market size within the Nasdaq. The QQQ ETF has around $24 billion in assets.
GREK is linked to the FTSE/ATHEX 20 Capped Index which is designed to reflect broad based equity market performance in Greece. The index is comprised of the top 20 companies listed on the Athens Exchange ranked by full market capitalization. As of December 1, 2011, the Underlying Index's three largest stocks were National Bank of Greece, Coca-Cola HBC, and Greek Organisation of Football Prognostics SA.
Since reaching a peak market capitalization of over $220 billion in 2007, the market cap of the Athens Stock Exchange has fallen nearly 90% to under $28 billion as of November 2011, according to Bloomberg.
Other New Products
Deutsche Bank and Invesco PowerShares Capital Management launched the PowerShares DB US Inflation (NYSEArca: INFL) and the PowerShares DB US Deflation ETN (NYSEArca: DEFL). The two exchange-traded notes (ETNs) tied to US inflation or deflation expectations.
The new ETNs give investors the opportunity to take long or short exposure to changes in the market's expectations of future inflation implied by the difference in yields between a notional long or short position in U.S. Treasury Inflation Protected Securities ( TIPS ), and an offsetting notional position in U.S. Treasury Bonds with approximately equivalent terms to maturity.
INFL and DEFL are senior unsecured obligations issued by Deutsche Bank AG, London Branch. The price of each ETN is based on a gain or loss of $0.10 per ETN for each 1 point increase or decrease in the level of the DBIQ Duration-Adjusted Inflation Index or the DBIQ Duration-Adjusted Deflation Index, as applicable, combined with the monthly returns of the DB 3-Month T-Bill Index, less an investor fee.
The principal amount of TIPS generally increases with inflation and decreases with deflation, as measured by the Consumer Price Index. However, TIPS market prices are also sensitive to changes in interest rates, which can diminish their ability to provide pure exposure to inflation on a mark-to-market basis.
Unlike traditional TIPS, which are widely used by investors who seek protection against inflation, the ETNsallow investors to take long or short exposure to changes in the market's expectations of future inflation and do not guarantee any return of principal at maturity.
Both DB inflation ETNs charge annual fees of 0.75%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.