New ETFs: Old Mutual Targets EAFE, Jefferies Goes for Commodities

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 |  Includes: CRB, EFA, RRET, VEA
by: Tom Lydon

New ETF providers Old Mutual and Jefferies have hit the markets with a slate of new funds, adding to their growing lineups.

The GlobalShares FTSE Developed Countries ex U.S. Fund (NYSEArca: GSD) is based on the EAFE index. It would compete with the iShares MSCI EAFE Index ETF (NYSEArca: EFA) and the Vanguard Europe Pacific ETF (NYSEArca: VEA).

According to Cinthia Murphy for Index Universe, GSD is as price competitive as EFA, with expenses pegged at 0.35%, but EFA is more liquid and faces very low volatility, which makes it a solid bet for investors looking for foreign exposure. VEA, on the other hand, has $6.1 billion in assets and charges 0.16% in fees. The portfolio mixes are nearly identical in both funds.

GSD has Canada in the line-up of 23 countries represented, which automatically sets it apart from the rest. Old Mutual, an established player in the mutual fund market, is expected to roll out in the coming weeks another three international ETFs, currently in registration.

Also of note is that Jefferies who is coming out with two derivatives-based commodities ETFs. The funds will give long-only exposure to 19 commodities by using futures contracts. The commodities will include aluminum, cocoa, nickel, natural gas, soybeans, gasoline and wheat. Each fund has a 0.75% expense ratio. Cinthia Murphy for Index Universe says the ETFs to look out for are:

  • Jefferies TR/J CRB Commodity Index ETF (NYSEArca: CRB)
  • Jefferies Commodity Real Return ETF (NYSEArca: RRET)