Thus far, 2011 has been brisk with new exchange-traded fund or ETF offerings. Last week the Vanguard Group launched the Vanguard Total International Stock Index Fund (NYSE: VXUS). Like other Vanguard ETFs, VXUS is a separate share class of existing Vanguard mutual funds.
VXUS is linked to the MSCI All Country World ex USA Investable Market Index which covers 98% of the world’s non-U.S. markets, including the European, Pacific, and emerging market regions, as well as Canada. It includes more than 6,000 issues encompassing stocks of large, mid and small cap companies in 44 countries.
At the end of 2010, VXUS had the following level of exposure to equities: 43.20% to Europe, 24.70% to emerging markets, 24.50% to Asia Pacific and 7.60% to North America.
“The Vanguard Total International Stock ETF is a new way to invest in an established fund that offers broad international diversification with an extremely modest price tag,” said Gus Sauter, Vanguard’s chief investment officer. “It complements our Total Stock Market ETF and Total Bond Market ETF and enables advisors and individual investors to assemble a simple, balanced, and well-diversified portfolio using low-cost ETFs.”
VXUS charges a lower annual expense ratio of 0.20% compared to 0.32% for the corresponding mutual fund share class (MUTF: VGTSX).
State Street Launches 3 Sector ETFs
State Street Global Advisors introduced three industry sector ETFs on January 27. The new funds track stocks in S&P healthcare, telecom and transportation sectors. The annual expense ratios for all three funds are 0.35%.
SPDR S&P Transportation ETF (NYSE: XTN) is an equal-weighted index ETF fund that includes 32 transportation companies with market capitalizations of at least $400 million.
SPDR S&P Telecom ETF (NYSE: XTL) is an equal-weighted index that includes 27 telecom companies with market capitalizations of at least $400 million.
SPDR S&P Healthcare Equipment ETF (NYSE: XHE) is an equal-weighted index that includes 30 healthcare equipment companies with market capitalizations of at least $400 million.
New Trend Following ETN from RBS
RBS Securities has launched the RBS US Mid Cap Trendpilot ETN (NYSE: TRNM) takes a strategic approach to investing in equities by being fully invested in the S&P MidCap 400 index when the market trend is up and switching to 3-Month U.S. Treasury Bills when it reverses.
Payment on the TRNM is linked to the performance of the Index, less an investor fee that is deducted daily at an annualized rate of 1.00% if the Index is tracking the S&P 400 TR Index or an annualized rate of 0.50% if the Index is tracking the T-Bill Rate.
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