Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Some New ETFs Could Be Stars in 2013

By

The lack of new ETF quantity has been made up for in terms of quality.

PrintPRINT
SPDR Barclays Short Term High Yield Bond ETF (NYSEARCA:SJNK): For all the attention being paid to outflows from large, longer duration junk bond ETFs, SJNK is off to a banner start on the AUM front. Since its mid-March debut, SJNK has hauled in $548.3 million in assets and that number is steadily rising.

In late September, SJNK's AUM total was $289 million. A month ago, it was $433.1 million. SJNK's modified adjusted duration of 2.12 years is just under half that of its longer duration cousin, the SPDR Barclays High Yield Bond ETF (NYSEARCA:JNK). If there is a knock on SJNK, it is that its longer duration rivals have outpaced it this year.

Market Vectors International High Yield Bond ETF (NYSEARCA:IHY): Keeping with the theme of soaring inflows to bond funds this year, the Market Vectors International High Yield Bond ETF has been an unheralded beneficiary of that movement.

The simple explanation of what IHY does is that it is an international equivalent of JNK or the iShares iBoxx $ High Yield Corporate Bond Fund (NYSEARCA:HYG). IHY is 10 basis cheaper than HYG and has the same expense ratio, 0.4%, as JNK. The Market Vectors offering features a slightly higher 30-day SEC yield than its two larger rivals. Importantly, IHY has not deviated much from the performance of its US-focused rivals. Since its April debut, IHY has slightly outpaced HYG while lagging JNK by a scant amount.

For those that believe a new ETF has to have $100 million in AUM to be validated as a "good" fund, IHY does better than that. The ETF now has over $201 million in assets, implying asset growth of nearly tenfold since late September.

Market Vectors Morningstar Wide Moat Research ETF (NYSEARCA:MOAT): Upon debut, critics could have said that MOAT was too esoteric and too much of a niche play. Well, touting Warren Buffett's love of wide moat business has proven to be a smart marketing tool because MOAT has accumulated almost $99 million in AUM. Home to just 21 stocks, MOAT has jumped 6.6% since coming to market. An interesting footnote is that Facebook (NASDAQ:FB) is currently MOAT's largest holding with a weight of almost 6.7%.

First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV): The First Trust NASDAQ Technology Dividend Index Fund represents a direct play on an important theme for dividend investors: The tech sector's rise to dividend prominence. While yields are still not impressive across the board, tech is the largest dividend-paying sector in the US in dollar terms.

Add to that, with the massive cash hoards held by the likes of Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), and other familiar tech names, the sector is expected to provided dividend growth in the coming years. That is assuming the fiscal cliff is avoided and that is the one of the hurdles TDIV faces in the near term.

A unique aspect to TDIV is that it is not a straight tech play. Rather, the volatility that sector is often known for is tempered somewhat because the ETF is sure to include a 20% weight to telecommunications names at each rebalancing. That means Verizon (NYSE:VZ), AT&T (NYSE:T) and related issues are TDIV holdings.

TDIV has outperformed the Nasdaq 100 since its August debut, but both have traded lower. Still, TDIV deserves credit for being a play on an important, that being dividend growth potential, and for garnering $46.4 million in AUM to this point.


Editor's Note: This content was originally published on Benzinga.com by The ETF Professor.

Below, find some more great ETF and market content from Benzinga:


Five Stocks To Buy Before the New Year

'One Of The Most Ridiculous Ideas Ever Recorded'-- Debunking Wall Street's Fuzzy Logic

Apple's Most Important Patent Is Invalid


Twitter: @Benzinga

Benzinga Pro covers this and all market news in real time. Get your free trial here.

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE