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PowerShares Launches Six New Global ETFs
September 19, 2008
SAN DIEGO (ETFguide.com) – PowerShares launched a series of six new ETFs on Thursday. Four of which, serve as gateway to access some of the largest and most liquid companies in the commodities industry.
Even though Van Eck claimed the bragging rights for first in class ETFs in agriculture, coal, steel and gold, it is always advantageous to have options. Competition keeps the market honest.
New PowerShares commodity-linked ETFs:
PowerShares Global Agriculture Portfolio (Nasdaq: PAGG)
PowerShares Global Coal Portfolio (Nasdaq: PKOL)
PowerShares Global Steel Portfolio (Nasdaq: PSTL)
PowerShares Global Gold and Precious Metals Portfolio (Nasdaq: PSAU)
The corresponding Van Eck ETFs are:
Market Vectors Agribusiness ETF (AMEX: MOO)
Market Vectors Coal ETF (NYSEarca: KOL)
Market Vectors Steel ETF (AMEX: SLX)
Market Vectors Gold Miners ETF (AMEX: GDX)
Both ETF providers utilize a similar methodology to construct the indexes. Component securities are market cap weighted with an 8% cap. The number of holdings for both lines range from as little as 26 to about 80. Van Eck’s Market Vectors price tag comes in a little lower at 0.55% - 0.65% compared to PowerShares’ 0.75%.
Country weightings vary by industry. The agriculture, gold and coal ETFs are heavily weighted in the United States and Canada. Market Vectors Steel ETF also boasts a 40% weighting in North America while the PowerShares Global Steel Portfolio provides balanced exposure to Japan, Russia, United States, Brazil and the Netherlands.
The remaining two new PowerShares portfolios are:
PowerShares Global Progressive Transportation Portfolio (Nasdaq: PTRP)
PowerShares Global Biotech Portfolio (Nasdaq: PBTQ)
The Progressive Transportation Portfolio brings a new idea to the market. The index includes companies that benefit from a societal transition toward using cleaner, less costly and more efficient means of transportation. More information about the index can be found in ETFguide’s index snapshot.
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The heavy weighting of U. S. based companies in the Global Biotech Portfolio leaves room only for a 5% (each) weighting in Spain, Switzerland and Australia. Amgen, Gilead, Genentech, Celgene and Genzyme make up 40% of PBTQ (5% each).
All of the above PowerShares portfolios carry an expense ratio of 0.75%. |
