An important question for any new, narrowly based ETF is whether it can deliver something new for investors in its sector.In July,
| It Pays to Diversify |
Foreign exposure has helped EXB outperform its peers
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As real as this threat is, there is a semiannual rebalancing of EXB that will cut the maximum weight of any one stock to 5%. So as well as a couple of the ETF's holdings have done, it will be trimming their weight, helping mitigate some of the risk. EXB's exposure to the asset managers offers a long-term demographic play on the baby boomers, but the brokers, like Merrill, Goldman Sachs ( GS) and Morgan Stanley ( MS) are likely to be a drag on the ETF's performance until the yield curve normalizes.