This past week on RealMoney.com, Don Dion blogged about IPO ETFs, Claymore's additional China sector ETFs and Power Shares private equity ETF.
Reduce Risk With IPO ETF
Posted 9/29/2009 3:45 p.m. EDT With seven IPOs, last week marked one of Wall Street's busiest weeks for new entries in quite a while. Companies making appearances included Artio Global Investors ( ART), Colony Financial ( CLNY), Vitacost.com ( VITC) and the highly-sought-after battery company A123 ( AONE). While picking which newcomer firm will be successful can, at times, be like playing roulette, ETF investors have an instrument that reduces this risk. First Trust U.S. IPO Index ( FPX) is designed to track the IPOX-100 U.S. Index. This index is made up of the top 100 U.S. IPOs ranked quarterly. Firms range from large, mature companies such as Philip Morris ( PM) to fast-growing and undervalued IPOs. Firms are tracked on this index for their first 1,000 days of trading. The index is adjusted quarterly. Before jumping in, investors should be aware of the risks associated with this instrument. FPX suffers from extremely low volume. The fund's three-month average volume barely breaks 3,000. Additional risk comes with the fund's quarterly rebalancing. With new companies of various sizes and sectors issuing IPOs, the fund's makeup can vary drastically from one rebalancing to another. Year to-date for the period ending Sept. 25, the fund is up 31%.
Claymore Adds More China Sector ETFs
10/1/2009 12:17 p.m. EDT Recently, I wrote an article on the introduction of the first Chinese sector ETFs by Global X. Through Global X China Consumer, Global X China Energy, Global X China Financials, Global X China Industrials, Global X China Technology and Global X China Materials, U.S. ETF investors will be able to gain exposure to smaller, more-focused slices of the booming Chinese economy for the first time.
In trading on Friday, shares of the Guggenheim China Small Cap ETF crossed above their 200 day moving average of $26.05, changing hands as high as $26.27 per share. Guggenheim China Small Cap shares are currently trading up about 0.7% on the day.
In trading on Tuesday, shares of the Guggenheim China Small Cap ETF crossed below their 200 day moving average of $26.04, changing hands as low as $25.82 per share. Guggenheim China Small Cap shares are currently trading off about 2% on the day.