The ETF world got a little bigger this week, as three new funds opened up for trading with unique strategies for investors to consider.
Van Eck Debuts CBON
The ChinaAMC China Bond ETF (CBON) marks a big entrance into the exchange traded world as it is the first U.S.-listed ETF to offer exposure to China‘s onshore bond market. The fund seeks to invest in all facets of the Chinese bond market, including credit, government debts, and more. The issuer noted that while it will likely take a long time before China’s bond market is fully liberalized, it is certainly moving in the right direction as borrowers have more access now than ever before. CBON will look to take advantage of a potentially lucrative market that has flashed signs of growth [see all of 2014's ETF launches at our ETF Launch Center].
Note that as an emerging market bond product, CBON will tend to carry a bit more risk and volatility than a U.S. bond fund. Investors simply need to be aware that the risk/reward profile for this fund will be higher than other bond products. CBON charges 57 basis points for investment.
PureFunds Rolls Out HACK
The cleverly-named ISE Cyber Security ETF (HACK) is the first ETF to offer exclusive exposure to the cyber security world. The last few years have seen cyber attacks increase dramtically, as criminals have taken to the internet to attempt to profit from the financial losses of others. This can happen on an individual basis, a company level, and even on a government level. As these attacks increase, the need for cyber security around the world will do the same.
HACK will look to take advantage of the high-growth potential of this industry to deliver returns to its investors. The fund charges 75 basis points for investment.
Exchange Traded Concepts Unveils EMQQ
The Emerging Markets Internet & eCommerce ETF (EMQQ) is the first fund to offer exclusive exposure to the internet/eCommerce sector of emerging markets. While emerging markets have high growth potential themselves, the eCommerce sectors are particularly explosive as these nations rapidly innovate. The fund will include coveted EM companies like Alibaba, Baidu, and Yoku among many others. As an emerging market fund, EMQQ will come with a high risk/high reward outlook and should only be used by those that can handle some volatility.
EMQQ charges 86 basis points for investment.
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Disclosure: No positions at time of writing.