10 New ETFs Feature Blends, Bonds and Buffett

by Kyle Woodley | April 30, 2012 1:26 pm

10 New ETFs Feature Blends, Bonds and Buffett

It took April until its final full week, but the month finally saw a boom in launches as 10 exchange-traded products came to life. And they’re a diverse bunch, covering everything from a Warren Buffett concept to blended commodities.

Van Eck channeled the Oracle of Omaha when it launched the Market Vectors Morningstar Wide Moat Research ETF (NYSE:MOAT[1]). The ETF follows Morningstar’s Wide Moat Focus Index, which is an equal-weighted index following stocks with “wide moats” — a term Buffett used to describe sustainable competitive advantages one company has over its rivals. Such advantages include low-cost production or high costs of switching from one product or service to another.

Holdings thought to have such “wide moats” include e-tailer Amazon (NASDAQ:AMZN[2]), search giant Google (NASDAQ:GOOG[3]), business octopus General Electric (NYSE:GE[4]) and money mover Western Union (NYSE:WU[5]). Expenses run at 0.49%.

State Street (NYSE:STT[6]) launched three of an expected six total entries as its first foray into the actively managed ETF field. All three use a fund-of-funds structure mixing equities with debt to provide better returns as a response to the exodus of cash that has fled to bond markets.

State Street’s SPDR SSgA Global Allocation ETF (NYSE:GAL[7], 0.35% expenses) uses 16 exchange-traded products to expose investors to a heavy mix of U.S. stocks, international stocks and investment-grade bonds, as well as TIPS, global real estate and high-yield assets. It includes a hefty 28% weighting in the SPDR S&P 500 ETF (NYSE:SPY[8]).

The SPDR SSgA Income Allocation ETF (NYSE:INKM[9], 0.7%) uses 18 income-based ETFs such as the S&P Dividend ETF (NYSE:SDY[10]), the Barclays Capital High Yield Bond ETF (NYSE:JNK[11]) and the Wells Fargo Preferred Stock ETF (NYSE:PSK[12]) to earn its returns.

Lastly, the SPDR SSgA Multi-Asset Real Return ETF (NYSE:RLY[13], 0.7%) aims to battle inflation through 13 exchange-traded products dedicated to natural resources, inflation-linked bonds, commodities and REITs. Holdings include the Global Natural Resources ETF (NYSE:GNR[14]) and Dow Jones Global Real Estate (NYSE:RWO[15]), among others.

Other funds launching last week included:

Last week’s additions doubled the total in April to 20, and all in all, 105 new funds have been launched this year, according to XTF.com. The previous week’s offerings[23] included an MLP ETF, an emerging-market corporate debt fund and a Chinese “trend-following” fund.

Kyle Woodley[24] is the assistant editor of InvestorPlace.com[25]. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley[26].

Endnotes:
  1. MOAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MOAT
  2. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  3. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  4. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  5. WU: http://studio-5.financialcontent.com/investplace/quote?Symbol=WU
  6. STT: http://studio-5.financialcontent.com/investplace/quote?Symbol=STT
  7. GAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=GAL
  8. SPY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPY
  9. INKM: http://studio-5.financialcontent.com/investplace/quote?Symbol=INKM
  10. SDY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SDY
  11. JNK: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNK
  12. PSK: http://studio-5.financialcontent.com/investplace/quote?Symbol=PSK
  13. RLY: http://studio-5.financialcontent.com/investplace/quote?Symbol=RLY
  14. GNR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GNR
  15. RWO: http://studio-5.financialcontent.com/investplace/quote?Symbol=RWO
  16. BLND: http://studio-5.financialcontent.com/investplace/quote?Symbol=BLND
  17. BSJG: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSJG
  18. BSJH: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSJH
  19. BSJI: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSJI
  20. BLK: http://studio-5.financialcontent.com/investplace/quote?Symbol=BLK
  21. QLTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=QLTB
  22. QLTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=QLTC
  23. previous week’s offerings: http://investorplace.com/2012/04/pipeline-profits-highlight-latest-batch-of-etfs-amlp-cemb-tchi/
  24. Kyle Woodley: http://investorplace.com/author/kyle-woodley/
  25. InvestorPlace.com: http://investorplace.com/
  26. @KyleWoodley: https://twitter.com/#%21/kylewoodley

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