Beware the Wal-Mart Supplier ETF
In the past few years, the exchange-traded fund industry has produced a lot of different kinds of products -- some great, some clearly worthless and some that can't easily be categorized as either.
Add to that last category the FocusShares ISE Revere Wal-Mart Supplier Index Fund (WSI).
The first sentence on the WSI web page pitching the fund asks if you have ever gone into a Wal-Mart (WMT) and wondered if you could somehow buy the companies that generate most of their sales suppling the retailer.
Personally, I never have and don't know anyone who has, although that does not necessarily make the fund a bad idea. My first inclination is to explore whether the 30 stocks in the fund that "derive a substantial portion of revenue from Wal-mart Stores" could be a proxy for something else.
|WMT Supplier Index vs. WMT Stock|
|Click here for larger image.|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV