For Immediate Release
Chicago, IL- July 14, 2015 - Today, Zacks Investment Ideas feature highlights Features: iShares Exponential Technologies ETF ( XT ) , ProShares UltraPro Nasdaq Biotechnology ( UBIO ) , ProShares UltraPro Short Nasdaq Biotech ( ZBIO ) , Direxion Daily S&P Biotech Bull 3X ETF ( LABU ), Direxion Daily S&P Biotech Bear 3X ETF ( LABD ), iShares Nasdaq Biotechnology ( IBB ), SPDR S&P Biotech ETF ( XBI ), Direxion Dly CSI 300 Chn A Shr Br 1X ETF ( CHAD ), Deutsche X-trackers Harvest CSI300 CHN A ( ASHR ), Direxion Dly S&P Oil&Gs Ex&Prd Bl 3X ETF ( GUSH ), Direxion Dly S&P Oil&Gs Ex&Prd Br 3X ETF ( DRIP ), SPDR S&P Oil & Gas Explor & Prodtn ETF ( XOP ) and Global X YieldCo ETF ( YLCO ).
The Best, Most Interesting ETFs to Launch in the First Half 2015
Each month, countless new ETFs hit the market. Many of these funds fail to offer up anything new or simply stay underneath investors' radars. And with over 100 new ETFs hitting the market in the first half of 2015 alone, it can be tough to find the truly important-or potentially useful-new funds in this massive bunch.
Fortunately for you, I have combed through the list and picked out a baker's dozen (OK I am being generous by counting two different 'types' as one) of ETFs that are worth noting out of this nearly 150 new fund group. Some of these have already gone on to great popularity while several others are waiting for the right moment or may not even be known by investors right now (also read 2 New ETFs with Big Potential ).
Either way, the ETFs highlighted below are all worth knowing a bit more about by all stripes of investors so definitely give this list a look if you are looking for new investment opportunities in the ETF world:
1. Exponential Technologies ETF: ( XT)
For an interesting way to play the technology market, iShares' XT will be tough to beat. The fund focuses on companies that are both engaged and benefit from at least one of the following nine themes; big data, nanotech, medicine/neuroscience, network/computer systems, energy/environment, robotics, 3-d printing, bioinformatics, financial service innovation (currencies, online transactions, etc.).
Curious as to what a few examples of this might be? Well, Tesla, as a leader in energy and environment changes, also can benefit from nanotechnology advances which are important to its battery production program. Meanwhile, Novartis, a company which is a leader in medicine, can benefit from big data improvements which can make trials and learning about how people interact with drugs that much easier on a larger scale (see Beyond XLK: 3 Great Tech ETFs ).
There are several new options in the leveraged/inverse biotech world, one area of the market that is definitely prone to big price swings. UBIO and ZBIO offer 3x/-3x exposure to the Nasdaq biotechnology Index ( IBB ) which is a large cap focused benchmark of biotech stocks. LABU/LABD use 3x/-3x leverage to track the S&P Biotech select industry index ( XBI ) which is an equal weight benchmark. Look for greater volatility from LABU/LABD though obviously all will be prone to big moves (see Intro Guide to Leveraged Biotech ETF Investing ).
3. Inverse China A-Shares ETF: ( CHAD)
Worried about China A-Shares? Then this -1x ETF from Direxion is your best way to profit. This fund tracks the -1x return of the CSI 300 A-Shares Index a popular China A-Shares benchmark which is the basis for ASHR . That benchmark China ETF has gained 14% in 2015, while it has lost 20% in the past month so volatility is definitely to be expected (read Investors React to China Stock Crash ).
Leveraged and inverse products were very popular for issuers and for this section we will discuss funds tracking the exploration and production market in the oil sector. GUSH (bull) and DRIP (bear) look to offer 3x/-3x exposure to the SPDR S&P Oil & Gas Exploration & Production index which is the basis for the popular XOP . Once again this is an equal weight index so more small cap stocks will be here and thus more volatility.
5. Yieldco ETF: ( YLCO)
Like the idea of investing in solar but hate the volatility? Then this new 'Yieldco' ETF could be for you. The fund tracks companies that have spun off their more stable power producing operations (known under the awful name of a 'yieldco') as separate entities. Mostly structured as corporations, 1099 tax form which is unlike many MLPs. The ETF pays a yield of about 2.7% so it is a solid choice for income investors but not one with amazing yields (see Inside Global X's New Yieldco ETF ).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.