U.S. equity markets have taken somewhat of a breather these last few weeks, as investors turned their attention to looming concerns over Fed tapering and this quarter’s earnings results. Across the board, earnings reports as well as economic data have been mixed, causing a significant slowdown in the bullish momentum seen this year. The ETF industry, however, continues to fill the product pipelines, giving investors more options to gain cheap and efficient exposure to nearly every corner of the investable universe. This week, two ETF issuers filed paperwork for several compelling funds that investors should certainly keep their eye on [see ETF Database Launch Center].
Known for their “ETF-In-A-Box” solution, Exchange Traded Concepts drafted plans for a fund that will be the first and only one of its kind – a “robot” ETF:
- Robo-Stox Global Robotics and Automation Index ETF (ROBO): According to the SEC filing, this one-of-a-kind fund will target the growing global robotics and automation industry. The underlying index invests in companies who derive a significant portion of revenues from the technologies, services, or devices that contribute to any type of robot, robotic action or automation system. ETC plans to charge 95 basis points – a relatively steep price tag, but one that may be justifiable considering the technology industry’s rapid growth [see The Complete History of the SPY].
- Alerian Energy Infrastructure ETF: This fund will track the Alerian Energy Infrastructure Index, which tracks roughly 30 companies that engage in the transportation, storage, and processing of energy commodities. Unlike many MLP-focused funds, this ETF will allocate no more than 25% to actual master limited partnerships, meaning it will be able to avoid the deferred tax characteristics associated with traditional MLP products.
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Disclosure: No positions at time of writing.
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