This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Five Unloved, Illiquid ETFs Worth a Look

NEW YORK (TheStreet) -- As the ETF industry becomes more expansive, providers are going to ever greater lengths to produce funds that will generate interest from the broad investing public.

While many funds manage to catch on right from the get-go, many more end up falling by the wayside. Interestingly, some funds that have struggled to gain popularity actually track interesting slices of the broad market. In this piece I will highlight five products which, while illiquid, have caught my attention.

Please note all the funds highlighted below are considered illiquid and therefore potentially subject to greater spreads. Risk tolerant investors looking to try their luck with any of these products listed should keep exposure small and maintain a very close watch on their performance.

Claymore/Sabrient Defensive Equity Index ETF (DEF)

With economic concerns stoking fear in the hearts of many investors, investors are increasingly on the prowl for the best way to play defense. While in the past I have highlighted bond funds, gold, and dividend players like iShares Dow Jones Select Dividend Index Fund (DVY) as ways to combat against economic threats, DEF is another interesting option.

This Claymore fund is designed to track the Sabrient Defensive Equity Index. Comprising this index is a number of stocks, ADRs, and master limited partnerships which will aid investors in their attempts to ward off economic headwinds.

Top holdings include Tomkins PLC (TKS), Linn Energy (LINE), Oneok Partners (OKS) and Enterprise GP Holdings (EPE) . The fund is diversified; together, these positions represent only 5% of the fund's index. And although it changes hands less than 20,000 times per day, it has still managed to earn five stars from Morningstar (MORN).

Aside from providing investors with sanctuary against market downturn, DEF also provides an annual dividend valued at close to 3% and has beat the S&P 500 Index in the past year and year to date.

Global X China Technology ETF (CHIB)

The smartphone showdown between Apple (AAPL) and Google (GOOG) continues to rage in the United States. However, the outcome may ultimately be decided on which of these companies can holds the crown among the growing population of Chinese mobile users.

Launched in late 2009, Global X's CHIB is part of the firm's unique suite of sector-specific China ETFs. Designed to encompass the nation's tech industry, this fund boasts exposure to popular names including Baidu (BIDU), Tencent and Foxconn.

Telecom giants including China Unicom (CHU) and China Mobile (CHL) also make appearances among the fund's index. These companies are all well positioned to benefit from the growth of the smartphone and Internet sectors of the Chinese economy.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs