This past week on RealMoney.com, Don Dion blogged about IPO ETFs, Claymore's additional China sector ETFs and Power Shares private equity ETF.
As a sign of the growing interest in these instruments, another fund provider announced its own new China sector ETFs. Claymore Securities is not new to China funds. The company already runs the Claymore/AlphaShares China Small Cap Index ETF ( HAO) and the Claymore/AlphaShares China Real Estate ETF ( TAO). Now, looking for innovative ways to access the Chinese economy, Claymore is planning to launch three new funds aimed at covering the consumer, technology and infrastructure sectors of the emerging nation. The funds will be listed as Claymore/AlphaShares China Consumer ETF, Claymore/AlphaShares China Infrastructure ETF and Claymore/AlphaShares China Technology ETF. These are welcome editions; as with their small-cap and real estate ETFs, Claymore is targeting the sectors most underserved by broader China ETFs. It has quickly become evident that international sector funds are one of the next important evolutionary stages of the ETF universe. However, although these instruments will provide exciting new ways to invest overseas, they also come with increased risk not present in traditional international ETFs.
Although PSP has been actively trading for only two days under its new form, there will already be a change to its holdings. Kohlberg Kravis Roberts & Co. recently completed its long-awaited deal to combine with KKR Private Equity Investors LP. This move allows KKR access to Euronext under the ticker KKR. It will begin trading on Friday. After the announcement, shares of KKR Private Equity Investors LP jumped 1.1% in Amsterdam, where the company is listed. KKR Private Equity Investors LP is currently listed as one of PSP's top holdings, accounting for 3% of the fund. The combining of the two firms and its new listing will likely boost the stock further and may lead to some alterations in PSP's weightings.