7 of the Most Unusual ETFs
The number of exchange-traded funds, which track indexes or baskets of assets but trade like stocks, has mushroomed in recent years, growing from one in 1993 to more than 100 in 2001 to nearly 1,100 now. As investors channel more and more money into these funds, the ETF industry continues to chop up the world of securities into ever-narrower pieces, allowing investors to put money into specific countries, regions, asset classes, or investment themes. As Morningstar ETF analyst Timothy Strauts writes: “Today anyone with a brokerage account can invest in Russian rubles, South Korean small caps, cocoa, carbon credits, and short Latin American stocks with 300% leverage.” Or as ETF provider iShares put it in a long-running ad campaign: "We'll stop making ETFs when you stop having ideas."
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Net assets: $1.8 million
Global X suggests that the fish trade is likely to increase in coming years as diets around the world continue to add more protein. This young fund tracks an in Inception Date: May 3, 2011
Net assets: $1.8 million
Global X suggests that the fish trade is likely to increase in coming years as diets around the world continue to add more protein. This young fund tracks an index of companies “engaged in commercial fishing, fish farming, fish processing, or the marketing and sale of fish and fish products.” Some of the fund’s holdings have already been reeling in big gains, with top holding Toyo Suisan Kaisha, a Japanese food manufacturer, up 15 percent over the last year. Koichi Kamoshida/Getty Images
Net assets: $131 million
Investors can buy into any of a range of commodities through specialty ETFs, from sugar to cocoa to coffee to, yes, lean hogs. The Teucrium Corn Fund, up 70 pe Inception Date: June 9, 2010
Net assets: $131 million
Investors can buy into any of a range of commodities through specialty ETFs, from sugar to cocoa to coffee to, yes, lean hogs. The Teucrium Corn Fund, up 70 percent over the past year, lets investors and speculators track the futures price of the key agricultural commodity. The fund carries a hefty 1.49 percent expense ratio. Mark Wilson/Getty Images
Net assets: $126 million
This fund holds 22 stocks of battery-makers abnd miners of lithium, a metal used in rechargeable batteries. The goal is to profit from the growing need for al Inception Date: July 22, 2010
Net assets: $126 million
This fund holds 22 stocks of battery-makers abnd miners of lithium, a metal used in rechargeable batteries. The goal is to profit from the growing need for alternative energy sources. But as Morningstar’s Strauts notes, the top three holdings in the fund are actually chemical companies that only see a portion of their earnings come from lithium. “ETFs must stick to publicly traded securities,” Strauts writes, “and sometimes there is no good way to invest in certain investment themes in the public markets.” Wikimedia
Net assets: $34 million
Another play on global food demand, this fund invests in 29 fertilizer and potash companies around the world, from the U.S. to Taiwan and Canada to Israel. “Chi Inception Date: May 25, 2011
Net assets: $34 million
Another play on global food demand, this fund invests in 29 fertilizer and potash companies around the world, from the U.S. to Taiwan and Canada to Israel. “China and India are the largest fertilizer consuming countries, together accounting for more than 40% of world fertilizer use,” Global X notes in explaining why this market is, well, fertile soil for investors. Justin Sullivan/Getty Images
Net assets: $3 million
If you’ve bought the fertilizer, why not buy the farms? This new fund owns more than 50 global agriculture stocks, including U.S. giant Monsanto and Asian leader Inception Date: June 1, 2011
Net assets: $3 million
If you’ve bought the fertilizer, why not buy the farms? This new fund owns more than 50 global agriculture stocks, including U.S. giant Monsanto and Asian leader Wilmar International. Brent Stirton/Getty Images
Net assets: $14.5 million
For investors who want to dial in to the growth in the smartphone market, First Trust this year launched an ETF dedicated to the gadgets, including hands Inception Date: February 17, 2011
Net assets: $14.5 million
For investors who want to dial in to the growth in the smartphone market, First Trust this year launched an ETF dedicated to the gadgets, including handset makers, software developers, and network providers. Top holdings include Motorola Mobility Holdings, which is being bought by Google, as well as Apple, Nokia, and Chinese manufacturer Foxconn International Holdings. Apple
Net assets: $14.5 million
A number of ETFs invest in companies that provide potable drinking water, water-treatment services, or related technologies. This PowerShares fund focuses Inception Date: December 6, 2005
Net assets: $14.5 million
A number of ETFs invest in companies that provide potable drinking water, water-treatment services, or related technologies. This PowerShares fund focuses on companies traded in the U.S., while the PowerShares Global Waster Portfolio (PIO) devotes more than 70 percent of assets to other countries. Other water ETFs include the First Trust ISE Water Index Fund (FIW) and the Guggenheim S&P Global Water Index (CGW). Ian Waldie/Getty Images
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