Meanwhile, the mutual fund industry also boasts a product that combines exposure to a diverse collection of auto related equities. The Fidelity Select Automotive Fund's ( FSAVX) portfolio includes many of the same auto manufacturers as CARZ. However, unlike First Trust's new product, this mutual fund option expands its exposure beyond manufacturers to include suppliers. Johnson Controls, Tenneco ( TEN) and TRW Automotive Holdings ( TRW) can be found listed among the fund's top 10 components.

The auto industry's phoenix-like resurgence has been exciting to watch and now, with the introduction of CARZ, ETF investors have their first chance to gain direct global exposure. It will be important to exercise caution in the opening days of the fund. As CARZ works to establish its place within the ETF industry, investors should continue turn to weathered-auto plays such as XRT, IYK and FSAVX.

Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management owned iShares Dow Jones Consumer Goods Index Fund.

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