Top Portfolio Products: Direxion Launches Junior Gold Miners ETFs

Invesco PowerShares launches China A-share ETF; U.S. Bank launches new IRA

New products introduced over the last week include two leveraged junior gold miners ETFs from Direxion and a China A-share ETF from Invesco PowerShares.

In addition, U.S. Bank Wealth Management announced its new Heritage IRA.

Here are the latest developments of interest to advisors:


1) Direxion Launches Leveraged and Inverse Junior Gold Miners ETFs

Direxion announced recently that it has launched two leveraged ETFs tracking the global equity performance of junior gold-mining companies. The Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG) seeks to achieve daily investment results, before fees and expenses, of 300% of the performance of the Market Vectors Junior Gold Miners Index. The Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST) seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the Market Vectors Junior Gold Miners Index.

The index is a market-capitalization-weighted total return index. It covers the largest and most liquid small-cap companies that derive at least 50% of their revenue from gold or silver mining, or have properties that do so. The composite includes companies based in the U.S. and other markets, including Australia, Canada and Singapore. As of Sept. 15, the index had average and median market capitalizations of $362.46 million and $294.74 million, respectively. The ETFs do not attempt to meet their investment goals for periods longer than one day. There is no guarantee that their objectives will be met.

2) Invesco PowerShares Lists China A-Share ETF

Invesco PowerShares Capital Management announced Thursday the launch of the PowerShares China A-Share Portfolio (CHNA). CHNA is an actively managed ETF that seeks long-term capital appreciation by providing exposure to the China A-shares market using a quantitative, rules-based investment strategy.

CHNA will invest primarily in the SGX FTSE China A50 index futures, as well as other instruments such as ETFs providing exposure to the largest companies within the China A-shares market, and A-shares to the extent permissible under Chinese law. CHNA will have a management fee of 0.50%.

3) New U.S. Bank Heritage IRA Simplifies Beneficiary Distributions

U.S. Bank Wealth Management announced recently that it had launched the U.S. Bank Heritage IRA, which combines an individual retirement account (IRA) and trust agreement into one instrument to help clients design a long-term, customized distribution plan for IRA beneficiaries. The Heritage IRA offers both the potential tax benefits of a traditional or Roth IRA and the control of a trust. It is available through The Private Client Reserve of U.S. Bank for high-net-worth clients, Ascent Private Capital Management of U.S. Bank for ultrahigh-net-worth clients, and The Private Client Group for affluent clients.

The Heritage IRA can be used by clients who wish to control — beyond death — who receives the benefit of their IRA assets and how they will receive them. Clients may use the instrument because they’re concerned about a beneficiary’s ability to manage money responsibly; to extend the benefits of an IRA over the lifetimes of their children and beyond; to provide for a current spouse as well as children from a previous marriage; or out of concern about how their IRA will be managed if they become incapacitated. The Heritage IRA is also helpful for Americans who have a non-U.S. spouse and want to qualify their IRA assets for the marital deduction.

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Read the Oct. 4 Portfolio Products Roundup at ThinkAdvisor.

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