ETF Times: August 16 - 20

An upcoming holiday helped beef and cattle-related ETFs while concern over the US economy hit natural gas funds last week

Morningstar ETF Analysts 24 August, 2010 | 5:09PM
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New Listings
Credit Suisse launched a European mid-cap equity ETF on Frankfurt's stock exchange last week. Previously available on the SIX Swiss Exchange, the ETF tracks the MSCI EMU Mid-Cap index, which includes 150 companies from 11 eurozone nations. While there are multiple mid-cap ETFs that track Europe-wide indices, this is the only one to focus exclusively on the eurozone. The total expense ratio (TER) on this physically-replicated fund is 0.53% annually.

Source launched a new hedge fund ETF on the London Stock Exchange (ticker symbol: SMLD). The Bank of America-Merrill Lynch Hedge Fund Factor Dollar ETF tracks the Merrill Lynch Factor Model Index, a quantitative model that aims to give hedge fund beta in an ETF package. The model accomplishes this by altering the weightings to four different equity indices, including the S&P 500, the MSCI EAFE, MSCI Emerging Markets, and Russell 2000, as well as the euro-US dollar spot exchange rate and the one-month US dollar LIBOR rate. Currently, the one-month US dollar LIBOR has the greatest weighting at 64%, while the Russell 2000 is the only component with a negative weighting of -12%. The synthetic ETF charges a TER of 0.70% annually.

Best and Worst Performers for the Week of August 16 - 20
The top-performing ETFs for the week leaned heavily towards commodities exposures. Cattle and livestock funds gained on growing demand for beef as Americans gear up for the Labor Day weekend of barbecues, as well as a large decline of more than 300,000 head of cattle in the US. Coffee prices continued their strong run, having increased about 40% since March, as the price per pound of beans hit a 12-year high based on poor weather in major coffee growing regions of Central America, Columbia and Brazil.

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Morningstar ETF Analysts  research hundreds of ETFs available to European investors. The Morningstar Rating for ETFs is based on a risk-adjusted performance measure.