What’s hot? Small-cap and biotechnology, for two things. That’s why two major ETF providers have funds either launching or in the works to cover both of these popular asset classes.
IndexIQ is gearing up to launch a whole suite of small-cap single-country ETFs. The firm will start a small-cap South Korean ETF (SKOR) today and follow up with others later. A small-cap Taiwan ETF should launch in two weeks, followed by ETFs tracking Hong Kong, Singapore, Canada and Australia.
The small-cap family of ETFs will help investors track specialty areas of emerging and developed nations overseas. They will specifically target small-caps, as they have outperformed the larger-cap counterparts.
Biotechnology is not only a bright spot in the U.S. economy, it is an active spot that is waiting for Congress’s next move. ProShares, the world’s biggest provider of inverse and leveraged ETFs, rolled out a pair of leveraged and inverse ETFs targeting the biotechnology industry, says Oliver Ludwig for Index Universe. The latest ETFs are:
- Ultra Nasdaq Biotechnology (BIB): Seeks to double the daily returns of the Nasdaq Biotechnology Index.
- UltraShort Nasdaq Biotechnology (BIS): Designed to deliver twice the inverse of the index’s daily return.
Please remember that leveraged and inverse funds are designed for more hands-on, risk-tolerant investors, as long-term returns can vary widely from daily objectives. These are not buy-and-hold tools and should be monitored daily.