With recent market volatility and news focused on the international markets, many investors are looking for new international opportunities while others want to flee the volatility for the relative safety and calm of fixed income.New Exchange Traded Funds offer investors both opportunities and in this article we’ll take a look at these new offerings.
In the International arena, ProShares launched a series of leveraged Exchange Traded Funds focusing on country specific areas.
The new ETFs are:
(NYSEARCA:UXJ): ProShares Ultra MSCI Pacific Ex-Japan
(NYSEARCA:UMX): ProShares Ultra MSCI Mexico Investable Index
(NYSEARCA:UBR): ProShares MSCI Ultra Brazil
(NYSEARCA:UPV): ProShares Ultra MSCI Europe
These are 2X leveraged products designed to return 200% of the daily price move of the underlying index. These particular funds offer country specific exposure in the case of Brazil and Mexico and regional exposure in the Pacific, not including Japan, or Europe, which, of course, has been making headlines as of late.
These leveraged products come with lots of disclaimers and are tricky in that they’re rebalanced everyday and so it’s important to carefully read the prospectuses and fact sheets so that you fully understand how they work.
For investors with less stomach for volatility and who are seeking fixed income returns, iShares has recently launched a set of Exchange Traded Funds to track fixed income securities.
Known as the Muni Series, these ETFs track an index of municipal bonds and the ETFs have a fixed end date at which time the fund will be closed and its assets distributed.
These funds currently run from 2012 to 2017 and these end dates allow you to invest in Muni Bonds through the exchange traded fund structure knowing ahead of time when the money will be available for planned needs like retirement, college tuition or buying a second home.
Like all ETFs, they are liquid and each offers built in diversification by tracking a number of municipal bonds in each portfolio.
The symbols for these ETFs are:
(NYSEARCA:MUAA): iShares 2012 S&P AMT-Free Municipal Series
(NYSEARCA:MUAB): iShares 2013 S&P AMT-Free Municipal Series
(NYSEARCA:MUAC): iShares 2014 S&P AMT-Free Municipal Series
(MUAD): iShares 2015 S&P AMT-Free Municipal Series
(MUAE): iShares 2016 S&P AMT-Free Municipal Series
(MUAF): iShares 2017 S&P AMT-Free Municipal Series
For complete information about these offerings you can go here.
So, as always, the world of Exchange Traded Funds remains dynamic and fast changing and new opportunities for diversification regularly appear. No matter how sophisticated or basic your investment strategy may be, there’s an ETF for whatever kind of exposure you want or need for your portfolio.
Disclaimer: No Positions