Both alternative energy and Africa represent fertile terrain for investment growth -- or so reasoned some exchange-traded fund managers earlier this year. But new ETFs focusing on those themes have yet to pay off.
The accompanying table of five recently created ETFs targeting the realm of alternative energy and two with investments in Africa and the Middle East shows that the new offerings have yet to break out from the pack during the depressing autumn of 2008.
With more than 800 ETFs now competing for investor attention, new offerings by the industry usually reflect what money managers consider the new "trendy" areas of the investment milieu. As often as not, by the time the investment fashion police identify an area as "the next new thing," the investment trend has peaked and investors find themselves dressed in last year's portfolio trappings.
But this new batch of tony ETFs represents the possibility of longer life spans. Few would quarrel with the reasoning that the alternative energy trend is still in its infancy. Similarly, the Africa/Middle East region is undeniably the least -- and possibly last -- exploited investment region left on earth.The only fund on the list to outperform the S&P 500 total-return index over the past three months was the iPath Barclays Capital Global Carbon Index Total Return Fund (GRN), which retreated only 14.45% while the S&P tumbled 23.11%. None of the other funds in the list of seven was able to better the S&P gauge during the October bloodletting.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV