Financial ETF Proves Its Mettle

An important question for any new, narrowly based ETF is whether it can deliver something new for investors in its sector.

In July, I wrote about the then-new Claymore/Clear Global Exchanges, Brokers and Asset Managers Index ETF(EXB Quote). In that first article I suggested that the one thing that might differentiate it from two other ETFs in the sector, the iShares DJ US Broker-Dealers Index (IAI Quote) or the KBW Capital Markets ETF (KCE Quote), would be the newer fund's international exposure.

(I should note that I was skeptical of the five-year back-test of the fund, because many of the publicly traded exchanges in the fund at inception only listed in the last couple of years.)

Since EXB's listing, the market had an all-too memorable stress test that can be the basis for comparison for all sorts of products and sectors. ...