2014 has been another strong year for the ETF industry, as we have seen more than 175 new funds hit the market as issuers continue to expand the options available at investors’ fingertips. That number rose again this week as two issuers squeezed in the debut of unique ETFs before the year comes to a close [for more ETF news and analysis subscribe to our free ETFdb Daily Roundup].
WisdomTree’s New Emerging Market ETF
WidsomTree continues to innovate with the release of the Emerging Markets ex-State-Owned Enterprises Fund (XSOE). This fund invests in emerging market securities that are not state-owned enterprises, meaning that a particular government’s decisions cannot dominate the fund. A good example comes from Petrobras, a major Brazilian oil firm that is almost entirely owned by the Brazilian government. Petrobras is a major holding in a number of Brazil ETFs.
XSOE spreads its exposure across multiple sectors and countries, giving it a diversified portfolio for investors. It is the first ETF of its kind and should be intriguing for investors looking to avoid some of the popular emerging market companies that are heavily influenced by local governments. XSOE charges 58 basis points for investment.
Deutsche Asset Management Debuts Euro Hedged ETF
Currency hedge ETFs have been gaining in popularity in recent years, as some of these products have put out stellar returns. Deutsche Asset Management’s new Deutsche X-trackers MSCI EMU Hedged Equity ETF (DBEZ) will put a unique spin on European equities. The fund will invest in some of the largest names across the eurozone while hedging against fluctuations between the U.S. dollar and the euro. This strategy can be especially effective when a local currency is struggling.
DBEZ charges 45 basis points for investment and debuts in an enticing environment with the euro struggling.
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Disclosure: No positions at time of writing.