SAN DIEGO (ETFguide.com) - You’ve heard the expression, ‘If you build it, they will come’, but is that always the case in today's world? Recent news has shown that at least in the ETF world, the expression can safely be deemed untrue.
A primary example of this would be FaithShares - a company specializing in funds that follow the religious values of various denominations - will be pulling the plug on four of their faith-based ETFs next month.
In December of 2009, FaithShares built a firm of ETFs for investors who wanted exposure to companies that were in accordance with different religious denominations. Investment dollars didn’t come as expected and FaithShares decided to fold 4 of their 5 ETFs on July 15th.
The four funds that will be eliminated are:
--FaithShares Baptist Values Fund (NYSEArca: FZB)
--FaithShares Catholic Values Fund (NYSEArca: FCV)
--FaithShares Lutheran Values Fund (NYSEArca: FKL)
--FaithShares Methodist Values Fund (NYSEArca: FMV)
The FaithShares Christian Values Fund (NYSEArca: FOC) will be the only remaining fund of the firm.
These and other recent closings demonstrate that building ETFs with an extremely narrow focus has proven to be unappealing to many investors along with being a difficult sell.
Other ETF News
Global X launched the new Global X Super Dividend ETF (NYSEArca: SDIV) today. The new fund tracks the Solactive Global Super Dividend Index, which includes the 100 equally-weighted highest dividend yielding equity securities in the world. As of April 28, 2011, the three largest components of the Index were Gigabyte Technology, Myer Holdings and Annaly Capital Management.
SDIV’s annual expense ratio is 0.79%
The Guggenheim ABC High Dividend ETF (NYSEArca: ABCS) was also launched this week. The Fund tracks the BNY Mellon ABC Index, which holds approximately 30 common stocks or ADR’s from companies within Australia, Brazil and Canada. The Index is comprised of the top 10 stocks or U.S. exchange-listed ADRs with the highest yield for each country. The annual expense ratio for ABCS is 0.65%.
Guggenheim Funds also launched two new actively managed funds on June 2nd. The Guggenheim Enhanced Core Bond ETF (NYSEArca: GIY) seeks total return based on income and capital appreciation. The Fund attempts to outperform the Barclays Capital U.S.Aggregate Bond Index. The Guggenheim Enhanced Ultra-Short Bond ETF (NYSEArca: GSY) seeks maximum income consistent with preservation of capital and daily liquidity. The Fund attempts to outperform the 1-3 Month Treasury Bill Index.
The annual expense ratio for both actively managed funds is 0.27%.
