ETF Times: November 15-19

Just a week after being among the worst performers, sugar ETCs reappeared on the top gainers list, while volatility futures ETFs were the biggest fallers

Morningstar ETF Analysts 23 November, 2010 | 5:40PM
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New Listings
Deutsche Bank's db ETC arm launched a new commodity fund on the Deutsche Borse. The ETC tracks the performance of the db Mean Reversion index, which offers exposure to a basket of commodity futures currently including aluminium, gold, heating oil, corn, wheat and WTI crude oil. The mean reversion in the index name references the weighting strategy of the product, which attempts to overweight relatively inexpensive commodities and underweight relatively expensive commodities. Each commodity's trailing-twelve-month average price is compared to its five-year average price to determine its present valuation and relative weighting. The product is Euro-hedged and levies a total expense ratio (TER) of 0.45%.

db x-trackers listed four new emerging markets ETFs on the London Stock Exchange. Each ETF offers exposure to a different country-specific index. The new funds track the performance of the MSCI total return indices for Malaysia (ticker symbol: XCX3), Thailand (XCX4), India (XCX5), and China (XCX6). The ETF tracking the Chinese benchmark follows shares listed on the Shanghai, Shenzhen, and Hong Kong exchanges. The ETFs are all swap-based, and have TERs ranging from 0.50% for the Thai and Malaysian ETFs to 0.75% for the Indian ETF-- the Chinese ETF has a TER of 0.65%.

Best and Worst Performers for the Week of November 15 - 19
Just one week after being among the worst performers, sugar ETCs reappeared among the best performers for the week. Updated forecasts from India, one of the world's top exporters of sugar, pointed to lower-than-expected harvests, pushing prices higher. Corn fundamentals are also bullish, as the US harvest is expected to be 4% below 2009 levels.

The worst performers for the week were led by volatility futures ETPs. Natural gas prices were hurt by both record levels of supply, and fading hope of increased demand from industrial users or cold weather. Investors in Chilean equities grew nervous about rumblings that China would act to curb growth in a bid to curb inflation, which could potentially harm Chile's commodity exporters. Indian equities felt the brunt of a telecommunications scandal.

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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