UBS Adds New S&P 500 Leveraged ETN; Barron’s 400 Index Gets a Makeover

by on March 27, 2014 | ETFs Mentioned:

As markets jostle back and forth, investors have been prepping themselves for what appears to be a sideways pattern in major indexes. Though stocks have been relatively busy as of late, the ETF world was relatively quiet last week, with no new launches. The past few days, however, have seen things pick up as an index rebalance has shifted a popular existing ETF while a new UBS ETN hit the Street yesterday [for more ETF news and analysis subscribe to our free newsletter].

ETRACS Monthly Reset 2xLeveraged S&P 500 Total Return ETN (SPLX)

The newest addition to the UBS lineup, SPLX will employ a 200% leverage on popular S&P 500 Total Return (TR) index. A total return index is one that sees dividends and interest reinvested back into the index. To give you an idea of how big of a difference that makes, the Dow Jones Total Return index has outperformed the Dow by nearly 50% in the trailing decade. Like a number of other UBS products, SPLX will employ a monthly reset, as opposed to a daily reset.

bullThe fund charges 85 basis points for investment.

Barron’s 400 Index Rebalances

The Barron’s 400 Index, tracked by the Barron’s 400 ETF (BFOR, B), underwent its semi-annual rebalance on Monday, making a few big changes to the holdings of the ETF. For starters, the index is equal weighted, so all of the holdings will be worth 0.25% of the portfolio to start off (that will change depending on price action of individual stocks). Second, a number of big names have been added to the benchmark, including Facebook (FB), eBay (EBAY), and Monster Beverage (MNST) among others.

As far as sectors are concerned, financials saw the biggest decrease, though they still represent nearly 17% of the index. Technology had the biggest upward trajectory and now accounts for 15.5% of the benchmark; consumer discretionary and industrials remain the two largest sector allocations at 20% and 18.75%, respectively.

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Disclosure: No positions at time of writing.