Archipelago to Launch Tech ETF

Archipelago just put out a press release announcing that it has filed with the SEC to create a new ETF that will track the ArcaEx Tech 100 Index (^PSE), formerly known as the Pacific Stock Exchange Tech 100. AET100 is a price-weighted index, and is rather broad-based, covering industries ranging from telecom to biotech. The major holdings for a fund tracking this index will be Genentech, IBM, Amgen and Genzyme (see full top 10). Legally, the ETF will be a ‘40 Act investment company. No surprise there.

There is already a conventional open-end mutual fund that tracks this index: the ArcaEx Tech 100 Index Fund from NorthTrack Funds. It’s not cheap, however; the A shares carry a 5.25% front-end sales load for small (<$25k) investors. No word yet on what kind of fees the new ETF will charge, as the filing does not seem to be up on EDGAR yet.

« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of SeekingAlpha or its management. »