June Review - ETFs Blossom During Market Weakness
By Simon Maierhofer
July 09, 2008

SAN DIEGO - (ETFguide.com) - After a slow Q4 2007, new ETF launches have picked up significantly. ETF issuers are infected by the “ETF-bug” and have launched an average of 30 new ETFs/ETNs in the past few months.

There are currently over 716 ETFs and close to 80 ETNs actively traded. With over 450 ETFs and ETNs in registration we’ll probably break the magic 1,000 mark by the first half of 2009, if not sooner.

June saw the launch of 32 new ETFs/ETNs including the long awaited debut of a carbon credit related issue. BGI was the first one to enter this market with the iPath Global Carbon ETN (Ticker: GRN). Emission credits, designed to limit and reduce pollution, are a response to the rise in atmospheric carbon dioxide concentration. Unused credits are as good as cash and can be sold. >> click here for more information in the “Index Snapshot”.

In addition to a series of ten iPath commodity ETNs, BGI also made its presence in the alternative energy sector known with the unveiling of the iShares S&P Global Clean Energy (Ticker: ICLN), iShares  S&P Global Nuclear Energy (Ticker: NUCL) and iShares S&P Global Timer & Forestry ETFs (Ticker: WOOD).

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For the first time since December 2007, Vanguard has introduced a new ETF, the Vanguard Total World Stock ETF (Ticker: VT). VT goes up directly against the iShares MSCI ACWI Index Fund (Ticker: ACWI). VT charges 0.25% and consists of approximately 2,900 holdings. ACWI charges 0.35% with only 700 holdings.

PowerShares new Nasdaq-100 BuyWrite Portfolio (Ticker: PQBW) makes a lot of sense, especially in down or range-bound markets. The extra income from the covered call strategy (generate by the sale of covered options) enhances the performance of the underlying index. Thin trading volume is the only fly in the ointment for PQBW and other BuyWrite ETFs (PBP, BWV).

First Trust introduced the first ever Global Wind Energy ETF (Ticker: FAN) and got to enjoy the first mover advantage for a whole two weeks before PowerShares launched their Global Wind Energy Portfolio (Ticker: PWND).

Claymore’s Frontier Markets ETF (Ticker: FRN) provides exposure to countries like; Poland, Chile, Egypt, Kazakhstan, Peru and more.

The ELEMENTS S&P Commodity Trends Indicator (Ticker: LSC) applies a long/short strategy to six commodity sectors. Each sector within the S&P CTI (with the exception of softs) is set long or short (or for energy, flat) on a monthly basis, based on price movements over the prior seven months.

Rydex issued eight double long and double short ETFs based on the energy, financial, health care and technology sector while ProShares added a short oil and short financials ETFs.

Based on Deutsche Bank Indexes, PowerShares unleashed more double long, double short, long and short ETFs. This time based on base metals and crude oil.

All ETFs/ETNs Launched In June: