Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

139 New ETF's and Hybrids Launched During 2009, Selection of the Most Interesting

Companies / Exchange Traded Funds Jan 14, 2010 - 10:54 AM GMT

By: Ron_Rowland


Best Financial Markets Analysis ArticleYou might think the wild markets of the last year would have made ETF sponsors slow down a bit, but they kept on cranking out new products — some great, some not.

By my count, a total of 136 new exchange-traded products (ETFs, exchange-traded notes, and assorted hybrids) came on the market in 2009. At the same time, 56 ETFs and ETNs were liquidated, leaving a net increase of 80 for the year. (You can see the full list by clicking here.)

Today I want to focus on a handful of these new funds that I think were especially interesting. When I say “interesting,” it doesn’t necessarily mean I endorse these funds. As you’ll see, I think some of them are useless and potentially dangerous. Even so, they’re still interesting.

Let’s jump right in …

Interesting New ETF #1: Market Vectors Brazil Small Cap (BRF)

For years, emerging markets funds included only the local “blue chip” large-cap stocks. Now we have BRF to focus on the smaller stocks.

The fact that Brazil was the first to get its own small-cap ETF was no accident. The only other Brazil ETF, iShares MSCI Brazil (EWZ), is dominated by large energy, mining and steel companies. All of these are highly dependent on exports to the developed world.

BRF is the key to Brazil’s fast-growing domestic economy.
BRF is the key to Brazil’s fast-growing domestic economy.

BRF gives you access to smaller companies that serve Brazil’s booming domestic economy — which is growing fast, too. I’m really glad to have BRF available and hope to see similar funds covering other Brazilian markets.

Interesting New ETF #2: EGS Dow Jones Emerging Markets Financials Titans Index Fund (EMT)

EMT does not hold small-cap stocks. In fact, as the name suggests, this fund holds companies that can be considered “titans,” at least by emerging market standards.

What makes EMT interesting is that it was the first sector-based ETF to specialize in emerging markets. Banking and financial stocks from places like China, Brazil, and South Africa make up most of the portfolio. This is a fund with a lot of potential.

Interesting New ETF #3: Grail American Beacon Large Cap Value (GVT)

Never heard of GVT? Don’t feel bad; very few people have. Yet its introduction last May was a milestone in ETF history. GVT is the first actively-managed equity ETF that is a clone of a traditional mutual fund. Instead of tracking an index that changes only rarely, GVT has a manager (American Beacon) who decides what stocks to buy and sell, and when to buy and sell them.

In this regard, GVT is a lot like a conventional mutual fund — and that’s why it hasn’t attracted much attention. If you want professional management, would you rather go with an established fund or be the first to try an untested new format? GVT hopes to help you answer that question in the future.

I’m glad GVT blazed the trail. But I’m not sure the market is ready for this sort of product just yet.

Interesting New ETFs #4 and #5: MacroShares Major Metro Housing Up (UMM), and MacroShares Major Metro Housing Down (DMM)

These were quite possibly the most over-hyped ETFs ever introduced. In fact, they aren’t even ETFs. They are a strange hybrid product that is difficult to categorize. The intent was to give investors a way to trade an index of housing prices in major cities, either long or short.

No one knows what this house is really worth.
No one knows what this house is really worth.

Unfortunately, the MacroShares design was flawed in several critical ways: UMM and DMM did not track the Case-Shiller index they were supposed to follow, never attracted significant assets, and were liquidated in late December. Earlier this week, Robert Shiller was on CNBC and said “it was a mistake,” but they intend to try again.

Interesting New ETF #6: IQ Hedge Multi-Strategy Tracker (QAI)

If nothing else, this one may win the award for most mystifying fund name of the year. QAI seeks to give small investors a way to participate in sophisticated trading strategies that were previously only available in high-minimum hedge funds.

Is QAI the same thing as a hedge fund? No, not exactly. The ETF format still lacks the go-anywhere, do-anything flexibility available to the wealthiest investors.

On the other hand, that may be a good thing … we saw as recently as last year that hedge funds can lose money, too. And when they do, it tends to be a LOT of money. Nonetheless, QAI may be a good diversification tool for long-term investors.

Interesting New ETF #7: Market Vectors Vietnam (VNM)

2009 was the year that ETF investors got their first individual country access to the so-called “Frontier Markets” — countries that are just starting to develop modern economies. VNM is the first single-country ETF dedicated to a frontier market.

VNM was the first ETF to focus on Vietnam.
VNM was the first ETF to focus on Vietnam.

Vietnam, you may recall, is one of the “Next 11″ nations I wrote about in last week’s Money and Markets column. Expect a lot of volatility, but I think VNM will turn into a long-term winner.

Interesting New ETNs #8 and #9: iPath S&P 500 VIX Short-Term Futures ETN (VXX), and iPath S&P 500 VIX Mid-Term Futures ETN (VXZ)

As they used to say on the Monty Python show, “Now for something completely different.” Rather than follow market direction, VXX and VXZ are intended to follow market volatility. In plain English, they track the amount of fear in the market. When times are crazy and people are afraid, VXX and VXZ should do well.

The downside to VXX and VXZ is that they are extraordinarily complicated investments. I usually tell people not to invest in products they don’t understand. Another potential problem is that they are exchange-traded notes rather than exchange-traded funds. This carries some unique risks that I explained in detail last February.

If you have experience trading futures and options, you might find VXX and VXZ useful. Otherwise, I would leave these to the professionals.

Will 2010 bring even more interesting ETFs and ETNs? Probably so. And you can bet I’ll be watching closely.

Best wishes,


This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in