Though they were first introduced in 1992, it's the last few years that we've seen an explosion in both the popularity and availability of these instruments. They've moved beyond plain vanilla market indexes to encompass commodities, currencies, and bear funds. Still there's more work to do. Here are ten new ETFs that I would like to see added to the stable.
1. More commodity ETFs. Where are ETFs for pork bellies, cocoa, and lumber? Most people aren't sophisticated enough to handle futures trading, but they still need exposure to this asset class. An ETF would be a great way to do this.
2. An ETF that mimics options strategies.
3. An ETF based on the new Merrill Lynch frontier equity index.
4. ETFs that track sentiment indicators like the VIX. Or how about one that tracked interest rates.
5. Momentum stocks ETF. I don't know how this could be done cheaply due to the constant shifts in buying and selling, but there would be HUGE demand for it.
6. An ETF of ETFs/target date retirement ETF.
7. More niche ETFs. What about ETFs that track companies involved in the burgeoning fields of space tourism or extreme sports?
8. An ETF for distressed debt. Let retail investors be vulture investors for a day.
9. Real estate ETFs for specific housing markets. People forget that we have many housing markets. Not everywhere is tanking.
10. A collectibles ETF. This would be very hard to value, so it might have to be in something really liquid like Bordeaux futures or Old Masters.
1 comment:
An ETF like XAX, the American Stock
Exchang Index
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