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April 17, 2011 at 04:38 PM
This week in portfolio products news, Global X, Van Eck and Destra launched new funds while J.P. Morgan Worldwide Securities Services inked a deal with RIA FocusShares to service 15 new Focus Morningstar ETFs. Meanwhile, the Roumell Opportunistic Value Fund launched earlier this year has been getting attention in the business media.
Global X Launches Waste Management ETF
Global X Funds, the New York-based provider of exchange traded funds, on Wednesday launched the Global X Waste Management ETF (WSTE). WSTE is approximately evenly divided among the disposal of hazardous waste, non-hazardous waste and recycling sectors.
It tracks the Solactive Global Waste Management Index, which tracks the price movements in shares of companies that are active in those same sectors. As of April 7, the three largest components of the index were Stericycle Inc., Waste Management Inc., and Veolia Environnement SA.
“The Waste Management ETF provides relatively easy access to a global industry that continues to grow rapidly as the world’s population and individual incomes expand along with the need to manage waste and recycle resources,” said Global X Funds CEO Bruno del Ama in a statement.
The proper disposal of hazardous and non-hazardous waste is a growing aspect of many industries, especially as corporations are held more accountable for the waste they produce, according to Global X’s news release. “Investors in WSTE may stand to benefit from mandatory safety standards and environmental regulations imposed on these companies.”
IndexUniverse compares WSTE to Van Eck Global’s Market Vectors Environmental Services ETF.
Van Eck Launches Russia Small-Cap ETF
In other Van Eck news, the New York-based asset manager on Thursday announced the launch of its newest ETF, the Market Vectors Russia Small-Cap ETF (RSXJ).
RSXJ is designed to give investors pure-play exposure to the developing local Russian economy as measured by the country’s small-capitalization companies. Its underlying index is the Market Vectors Russia Small-Cap Index, part of Van Eck’s proprietary family of Market Vectors indices.
Russia is among the least expensive of the major emerging markets from a valuation perspective, according to a Van Eck news release that also notes that Russia’s stock market price-to-earnings ratio is just 6.6 times, which represents a “significant” discount versus emerging markets stocks in general. Before Van Eck’s launch of RSXJ, the firm had focused on large-cap companies in its Market Vectors Russia ETF (RSX).
“The best way to gain pure-play exposure to a country’s domestic economy is through smaller companies that derive their revenue primarily from doing business locally,” said Van Eck emerging markets analyst Ed Kuczma in a statement. “Other potential advantages with small caps generally include less political interference, relatively better corporate governance practices and relatively better protection for minority shareholder interests.”
IndexUniverse reports that the benchmark index has 35 companies, including Pharmstandard,as well as property developer LSR Group and O’Key Group.
Destra Introduces Two New Mutual Funds
Investment advisory firm Destra Capital Management, Lisle, Ill., announced the April 8 launch of two new mutual funds, the Preferred and Income Securities Fund and the Focused Equity Fund.
