Democratization remains a driving theme in the exchange-traded fund universe, and investors have been quick to take advantage of cost-efficient products offering access to increasingly popular asset classes. Some of the most successful fund launches in 2012 included PIMCO’s Total Return ETF (BOND), iShares’s MSCI Global Select Metals & Mining Producers (PICK) and First Trust’s North American Energy Infrastructure Fund (EMLP).
Investors of all styles and sizes were on the hunt for meaningful yield in 2012, and this theme is likely to carry over into the new year as slow growth and low rates appear poised to stick around on both sides of the Atlantic Ocean.
In light of the sluggish global recovery, we have picked out seven intriguing SEC filings that are currently on deck and could hit the market at some point in 2013.
1. Market Vectors Saudi Arabia ETF
The Saudi Arabia ETF filing from Van Eck marks yet another effort in opening up previously hard-to-reach asset classes, giving investors great flexibility when it comes to geographically rounding out their portfolio’s equity component. With energy consumption set to increase across the globe, it’s likely that the oil-centric market of Saudi Arabia is well-positioned to profit. We just wonder just when this ETF will hit the street.
2. ProShares Listed Private Equity ETF
Investors’ risk appetites have improved considerably over the last few months as solid economic data has helped to restore confidence. Those looking to bet on a bullish rebound for beaten-down financial sectors have no shortage of instruments available.
One particular area in this corner of the market that has caught our eye is the private equity space, an asset class that’s difficult to reach for mainstream investors, which is why we’re excited about ProShare's private equity ETF filing. Currently, the only offering which targets private equity companies is the PowerShares Global Listed Private Equity Portfolio (PSP), which has a market cap of nearly $327 million since launching in October 2006.
3. EGShares Turkey Small Cap ETF
After seeing the impressive performance (up 60% in 2012) posted by the iShares MSCI Turkey Index Fund (TUR), the only Turkey-specific ETF on the market, we’re excited to see what the nation’s up-and-coming companies have to offer. Turkey is home to a rapidly expanding middle class that is favorably positioned between Europe and Asia, presenting investors with a lucrative opportunity as this market further develops over the coming years. The proposed ETF from EGShares will consist of small-cap equities that are domiciled in Turkey and have a market capitalization between $100 million and $2 billion.
4. Market Vectors Global Chemicals ETF
With economic recovery on the horizon, the industrial sector appears poised to profit as developed and emerging markets alike kick back into gear. We’re excited about this Van Eck ETF as it will be the first of its kind, offering targeted exposure to the global chemicals industry. The filing mentioned that the proposed portfolio would consist of both foreign and domestic companies involved in the research, development or manufacture of chemicals or the marketing of products or services related to the industry.
5. Renaissance IPO ETF
The ETRACS Next Generation Internet ETN due July 19, 2041 (EIPO), an exchange-traded note offered through UBS, provides exposure to internet-related companies that have been publicly traded for less than three years. However, we’re interested in seeing this methodology carried over to a broader universe of potential holdings. As such, we are excited about Renaissance Capital’s plans to enter the industry with an IPO-based ETF. This proposed fund will track an index comprised of a revolving list of U.S. IPOs that meet certain criteria, which is changed on a two-year rotation.