This year’s pace of new product launches from issuers of exchange traded funds is decent, though not breathtaking and that could be a sign that sponsors are becoming more selective about the concepts that make it from the drawing board to launch.
A somewhat slow start to 2014 does not mean issuers will not pick up the pace later this year and with increased customization of ETFs for specific clients, investors can bet on more funds coming to market as this year moves along. “Part of the reason that new players are still finding opportunities is the big-sky nature of the ETF space. Imagination and demand are seemingly the only limits for ETFs. Each year about 150 new ETFs debut,” reports Paul Whitfield for Investor’s Business Daily.
Some of the new ETFs that have already established impressive followings include funds that debuted late last year. The ProShares S&P 500 Aristocrats ETF (NOBL) comes to mind. NOBL debuted in early October 2013 and was able to gain $100 million in assets by late February. [Dividend Aristocrats ETF Tops $100M in AUM]
NOBL is part of an ongoing effort ProShares to bolster its lineup of non-leveraged ETFs, an effort that includes the March launch of the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) .
There is an appetite for global infrastructure ETFs as highlighted by the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) . NFRA also debuted last October and already has north of $151 million in assets under management. [Go Global With Infrastructure ETFs]
Some of the new ETFs launched this year are different spins on concepts that have previously proven successful with investors. The PowerShares International BuyBack Achievers Portfolio (IPKW) , the global equivalent of the wildly popular PowerShares Buyback Achievers Portfolio (PKW) , is less than 60 days old and already has almost $15 million in AUM.
The SPDR International High Yield Bond ETF (IJNK) is the international answer to the SPDR Barclays High Yield Bond ETF (JNK) . IJNK debuted in mid-March and already has nearly $43 million in AUM. [ETF Sequels Worth Viewing]
FlexShares STOXX Global Broad Infrastructure Index Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of JNK.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.