Wrapping up the third quarter of 2014, three new ETFs made their way into the mix this week. Two funds came from a new player to the ETF ring, as we are beginning to see more and more new issuers trying their hands at the ETF wrapper. Another fund came from a well-known issuer featuring exposure unlike any other ETF currently on the market [for more ETF news and analysis subscribe to our free ETF Daily Roundup].
Guggenheim Launches Unique Real Estate Fund
Guggenheim debuted the Emerging Markets Real Estate ETF (EMRE) on Monday. EMRE is the first ETF of its kind in that it provides broad exposure to emerging market real estate. Past funds have focused on either specific countries or regions, where EMRE will offer a more diversified approach. The fund does tend to invest heavily in China (about 35%) but it spreads the rest of its holdings out over nations like South Africa, Thailand, Taiwan, Turkey, Egypt, Chile, and many others.
The fund charges 65 basis points for investment, a relatively low figure given the nature of its investment. To give you perspective, the China Real Estate ETF (TAO) charges 70 basis points for investing in just China.
Throwing its hat into the ETF ring, ARK Investment Management launched two new funds with two more waiting in the pipeline. On Tuesday, the Industrial Innovation ETF (ARKQ) and Web X.0 ETF (ARKW) began trading. Both funds will feature active management with different strategies/investment styles.
ARKQ will be managed by Cathie Wood (you can learn more about her on the fund’s home page) and focus on the most innovative industrial and information technology companies. The top 10 holdings are always listed on the fund’s home page as well as the premium/discount levels.
ARKW will also be managed by Cathie Wood. This ETF will focus on innovative companies that are focused on the increased use of shared technology and infrastructure, among other things. Like ARKQ, investors can look at the top holdings and the premium/discount levels at any time on the fund’s home page.
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Disclosure: No positions at time of writing.