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July Summary Escape To New Frontiers

July Summary Escape To New Frontiers
By Simon Maierhofer
August 06, 2008

SAN DIEGO (ETFguide.com) - If it wasnt for the ten new Sector International SPDRs, July would have been the slowest month of the year in terms of new ETF issues. This is not unusual as the summer months are often marked by lower volume and below par performance as traders take a break and enjoy the Hamptons.

The new suite of SPDRs provides exposure to international S&P industry sectors for a 0.50% management fee. The holdings of each SPDR range from 70 to 1,300 securities. State Street Global and WisdomTree are the only two issuers that offer a full set of international industry ETFs.

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The two suites are distinctively different in their weighting methodology. The S&P indexes, foundation for the SPDRs, are market cap weighted while the WisdomTree indexes are dividend weighted. Theoretically, the dividend weighting provides an extra layer of safety during times of economic contraction. It will be exciting to compare performance numbers next year.

Four new ETFs are exploring new frontiers: PowerShares, Van Eck and WisdomTree launched four new frontier ETFs.

The Market Vectors Gulf States Index ETF (NYSEarca: MES) provides exposure to some of the following countries: Kuwait 52%, UAE 26%, Qatar 15%.

The WisdomTree Middle East Dividend Fund (Nadaq: GULF) provides exposure to some of the following countries: Kuwait 25%, UAE 20%, Qatar 16%, Egypt 12%

The PowerShares Frontier Portfolio (Nasdaq: PMNA) has a more balanced allocation with exposure to: Egypt 20%, Kuwait 17%, Jordan 14%, Morocco 13%

The Market Vectors Africa Index ETF (NYSE: AFK) concentrates on African countries like Nigeria 25%, South Africa 25% and Egypt 13%. Up to 25% can also be invested in off-shore based countries.

The PowerShares Global Wind Energy Portolio (Nasdaq: PWND) seeks to rival First Trusts Global Wind Energy ETF (NYSE: FAN). Both ETFs launched just in time to take advantage of the free publicity surrounding T. Boone Pickens wind farm. The wind farm, consisting of 2,700 wind turbines, will cost the oil-baron $10 billion to build and is expected to generate 4,000 megawatts, enough to power 1 million homes.

Crude oil prices, the main propellant for alternative energy (wind, solar, nuclear) have taken a breather. The new MacroShares $100 Oil Down (AMEX: DOY) is up while the MacroShares $100 Oil Up (AMEX: UOY) is down.

Name

Ticker

PowerShares Global Wind Energy Portfolio

PWND

MacroShares $100 Oil Up

UOY

MacroShares $100 Oil Down

DOY

PowerShares Mena Frontier Countries Portfolio

PMNA

Market Vectors Africa Index ETF

AFK

WisdomTree Middle East Index Fund

GULF

SPDR S&P International Consumer Discretionary Sector ETF

IPD

SPDR S&P International Consumer Staples Sector ETF

IPS

SPDR S&P International Financial Sector ETF

IPF

SPDR S&P International Health Care Sector ETF

IRY

SPDR S&P International Industrial Sector ETF

IPN

SPDR S&P International Materials Sector ETF

IRV

SPDR S&P International Technology Sector ETF

IPK

SPDR S&P International Telecommunications Sector ETF

IST

SPDR S&P International Utilities Sector ETF

IPU

Market Vectors Gulf States Index ETF

MES


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