ETFTimes: September 27-October 1

Virtually all top performing ETFs for last week were fuelled by higher crude prices, while agricultural commodities trackers underperformed.

Morningstar ETF Analysts 5 October, 2010 | 5:57PM
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New Listings
iShares listed three ETFs on the Deutsche Börse. The equity ETFs track single-country MSCI indices for Australia, Canada and South Africa. At first sight, the three countries seem to have little in common, but a closer inspection reveals that the country's equity markets are dominated by financial services and commodity companies. In the case of the MSCI Australia Index, about 70% of the index is allocated to these sectors, while they represent more than 80% of the MSCI Canada Index, and more than half of the MSCI South Africa Index. The annual total expense ratio (TER) is 0.59% for both the MSCI Australia and MSCI Canada ETFs. The MSCI South Africa ETF levies a TER of 0.74%.

Lyxor listed 10 ETFs on the Deutsche Börse and the London Stock Exchange. The equity funds track global sector indices based on the MSCI World index. These sectors include telecoms (LSE ticker symbol: TELW), utilities (UTIW), materials (MATW), healthcare (HLTW), IT (TNOW), industrials (INDW), energy (NRGW), consumer staples (DISW), financials (FINW) and consumer discretionary (DISW). The annual total expense ratio (TER) for each of these ETFs is 0.45%. The funds are listed in both Pounds Sterling and US dollars.

HSBC launched an ETF tracking the MSCI Emerging Markets Far East Index on the London Stock Exchange. The physical-replication fund tracks the performance of the largest companies from China (equities available on the Hong Kong Exchange), Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand. The ETF is listed in both Pounds Sterling (LSE ticker symbol: HMFE) and US dollars (HMFD), and it charges a TER of 0.60%. HSBC plans to list this fund on additional exchanges in the coming months.

XACT Fonder launched eight ETFs tracking Nordic indices on the NASDAQ OMX Nordic exchange. The XACT Nordic 120 tracks the performance of the NASDAQ OMX index which consists of the 120 largest and most liquid Nordic publicly traded equities. The remaining seven ETFs are sector-based subsets of the OMX index. The sectors are: banks & insurance, materials, construction & real estate, energy, consumer goods, health care and industrials.

Best and Worst Performers for the week of September 27 - October 1
Virtually all of the top performing ETFs for the week were tied to the oil patch. The combination of some positive economic reports and low inventory numbers pushed up crude prices. The US dollar also weakened as traders speculated on the prospects that the US Federal Reserve would engage in another round of quantitative easing.

The worst performing ETFs for the week were related to agricultural commodities such as corn and wheat. Reports of greater rainfall in Russia eased fears over diminishing global wheat supplies after this summer's brutal drought, and US corn inventories look to be higher than previously anticipated.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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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.

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