The Indxx China Infrastructure Index

If you are an investor or a trader, chances are that you would have discussed China, its economy and its impact on the world at least once every day within your close circle. Like it or hate it but you cannot ignore that fact that Chinese economy has been the fulcrum of most discussions in the recent past. China, which is considered the top most emerging economies of all the Bric nations, has definitely emerged as the most vibrant success stories of the financial domain. With emerging economies comes Infrastructure developments and upgrades and China, which is known to be the manufacturing hub of the planet is no exception. The Chinese government which recently pumped a massive $586 billion stimulus package knows this fact and are investing billions into infrastructure projects to become a dragon economy in the real sense of the world.

A good way to get in on the trend is with Indxx China Infrastructure Index (Ticker: CHXX) that covers the Chinese infrastructure sector. The IndXX China Infrastructure Index is a 30 stock free float adjusted market capitalization index designed to measure the market performance of equities in the Infrastructure sector of China. Infrastructure sector is as companies categorized as a part of 35 sub sectors as per the GICS classification. The sub sectors cover Construction & Engineering, Construction Materials and Utilities. The index consists of common stocks that are listed on Hong Kong Stock Exchange, New York Stock Exchange, NASDAQ and London Stock Exchange.

Index Methodology- To become eligible for inclusion, a company must be a common stock listed on Hong Kong Stock Exchange, New York Stock Exchange, NASDAQ and London Stock Exchange. It should be among the 35 sub sectors identified by the GICS classification and have an average daily cash volume of US$4 million in the month of January and June prior to consideration. The company should have a minimum free float of 10%. The Index is reconstituted annually on June 30th and will begin trading starting October 1st of the same year. The Index is rebalanced for corporate actions. If a constituent is removed from the Index, there will be no replacement.

The Fund seeks to achieve its investment objective by attempting to replicate the portfolio of the Underlying Index through investments in equity securities, including shares traded on local exchanges, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). The Underlying Index is a free-float market capitalization weighted stock market index comprised of a representative sample of 30 emerging markets companies that INDXX, LLC determines to be the representative of mid-market capitalization companies domiciled in China.

The China Infrastructure Index charges a net expense ratio of 0.85 percent and has an average market value of $8.3 billion. The top industries it invests in are real estate management and development, metals and mining and construction and engineering.

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Overview Of Global X Brazil Consumer ETF

Brazil has been in the news for all the wrong reasons recently after a disastrous world cup football campaign but that hasn’t deterred Global X, the New York-based firm to the launch the Brazil Consumer ETF (BRAQ). Soccer is definitely the pulse of the Latin American nation and Global X hopes to tap the consumer pulse by launching its new fund that comes just two weeks after Global X introduced the Brazil Mid Cap ETF (BRAZ). The Brazil Consumer ETF (BRAQ) was launched on 8th July 2010 offers investors targeted exposure to sectors of the Brazilian economy, providing additional options for investing in one of the largest and most unique emerging economies. Global X also plans to launch ETFs tracking Brazil’s financial, industrial, raw materials and utilities industries in the near future.

BRAQ tracks the Solactive Brazil Consumer Index, a benchmark designed to reflect the performance of Brazil’s consumer sector. The ETF will track at least 20 companies and at most 40 companies in Brazil. BRAQ has the highest weights in the food and beverage (34%), retail (25%), and personal and household goods (19%) sectors.

The Solactive Brazil Consumer Index is designed to reflect the performance of the consumer sector in Brazil. It is comprised of securities of companies that have their main business operations in the consumer sector and are domiciled or have their main business operations in Brazil.

Using a replication strategy, the Global X Brazil Consumer ETF will normally invest at least 80% of its total assets in the securities of the underlying Index and in depositary receipts based on the securities in the Index. The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure the performance of the consumer sector of the Brazilian economy, as defined by Structured Solutions AG. The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund.


Top 10 Index Constituents Of BRAQ

CIA DE BEBIDAS DAS AME 4.75%
BRF - BRASIL FOODS 4.75%
CIA BRASILEIRA DE DIS 4.75%
NATURA COSMETICOS SA 4.75%
HYPERMARCAS S.A 4.75%
LOJAS RENNER S.A. 4.75%
SOUZA CRUZ SA 4.75%
GAFISA SA 4.75%
JBS SA 4.75%
LOJAS AMERICANAS SA-PREF 4.75%
Other 52.50%

Fund Management

Stock Exchange: NYSE Arca
Total Expense Ratio: 0.77%
Bloomberg IOPV Ticker: BRAQIV
Website: www.globalxfunds.com

Portfolio Managers: The professionals primarily responsible for the day-to-day management of the Fund are Bruno del Ama and Jose C. Gonzalez. Mr. del Ama and Mr. Gonzalez have been Portfolio Managers of the Fund since inception

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Hang Seng BeES ETF: India's First International ETF

The fixation of investing in Chinese markets with as low as Rs.10,000 combined with the growing popularity of Exchange Traded Funds (ETFs) marked the launch of the Hang Seng Benchmark Exchange Traded Scheme (NSE Symbol-HNGSNGBEES) in February this year. The fund is the brainchild of Benchmark Asset Management Company India Pvt. Ltd, which carved a niche for itself in the Indian Mutual Fund Industry by successfully launching first ETF in Asia (not only India) Nifty BeEs. The company is also credited with launching the Gold ETF first time in India.

The Benchmark's open-ended ETF tracks Hong Kong's Hang Seng index, one of the oldest and among the most popular indices on the Hong Kong stock exchange. The index currently comprises 42 stocks and can have a maximum of 50 stocks. The ETF, which is also investing in mutual funds, or ETFs that track the Hang Seng Index themselves, is the first international ETF to have emerged out of India.

The daily net asset value (NAV) of a single unit of the fund is arrived at, by calculating the daily Hang Seng index close multiplied by the currency rate of Hong Kong dollar-Indian rupee and divided by 100.


Management Of The Hang Seng BeES ETF

Name of Company: Benchmark Asset Management Co Pvt. Ltd.
Phone: 91-22-66512727
Website: www.benchmarkfunds.com
Address: 405,Raheja Chambers,
Mumbai 400 021
India

Inception Date: 15/03/2010
Fund Advisor(s): Benchmark Asset Management Co Pvt. Ltd.
Fund Manager: Vishal Jain
Manager Start Date: 15/02/2010
Fund Manager: Payal Kaipunjal
Manager Start Date: 15/02/2010

Top 5 Holdings Sector %

HSBC Holdings PLC Financial Services 13.70
China Mobile Ltd. Telecommunications 8.87
China Construction Bank Financial Services 7.08
Industrial And Commercial Bank O... Financial Services 6.23
China Life Insurance Company, Ltd. Financial Services 5.11



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Reviewing One Fund: The Fund Of Funds

Imagine being able to maintain a broad-based global stock portfolio of 5000 large medium and small companies in the United States, Europe and Japan as well as other developed and emerging markets covering over 95% of the world’s stock market through a single security for a long term investment growth? Sounds too good to be true but that’s exactly what One Fund (NYSE Ticker: ONEF), a US based investment company is offering to subscribers through an indexed investment approach at the lowest possible cost. U.S. One, Inc. serves as the investment adviser to the Fund while Paul Hrabal, President of U.S. One, Inc. is the Fund’s portfolio manager is managing the Fund since its inception on 11th May 2010. The One Fund ETF could be ideal for an investor considering the highs and lows and seeking a balanced ETF that tracks the world markets, with lesser noticeable gyrations of focused ETFs.

One Fund buys and holds stocks long term through ETFs that track various stock market indices as holdings are weighted based on their contribution to global stock market capitalization, adjusted for fund management’s view of the relative long-term economic prospects, competitive advantage and potential return of each target market. The One Fund offers investors a way to achieve the entirety of their equity exposure through a single security; the ETF’s fact sheet notes that investors can achieve access to more than 5,000 companies in the US and around the world through ONEF.

One Fund began trading on the New York Stock Exchange under ticker symbol ONEF on 11th May 2010. The Fund shares are listed for secondary trading on the NYSE Arca. One Fund’s fact sheet states that its investment approach is based on its three beliefs that 1) stocks outperform, 2) market timing does not work, and 3) stock selection does not work. Sounds like a passive indexed product one would say, but ONEF is an actively managed fund and not a tracking index.

Overview Of One Fund

Ticker Symbol ONEF
Investment Category Global Stock Fund
Investment Objective Long Term Growth
Total Expense Ratio 0.51%
Inception Date 05/11/2010

One Fund Holdings (By Investment As Of 7/8/2010)

Ticker Exchange-Traded Fund Weight

VV VANGUARD LARGE-CAP ETF 49.09%
VEA VANGUARD EUROPE PACIFIC ETF 21.05%
VB VANGUARD SMALL CAP ETF 19.33%
VWO VANGUARD EMERGING MARKETS ETF 5.34%
SCZ ISHARES MSCI EAFE SMALL CAP INDEX 5.20%

U.S. Large Cap Equity

Vanguard Large Cap ETF: The Fund employs a “passive management” or indexing investment approach designed to track the performance of the MSCI® US Prime Market 750 Index, a broadly diversified index predominantly made up of stocks of large U.S. companies. For more information about this Fund, including its prospectus and shareholder reports, go to www.vanguard.com.

U.S. Small Cap Equity

Vanguard Small Cap ETF

International Equity

Vanguard Europe Pacific ETF: The Fund purchases stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI® EAFE®) Index, which is made up of common stocks of companies located in countries in Europe, Australia, Asia, and the Far East.


Advantages Of Choosing One Fund ETFs

One Fund owns, through the underlying ETFs, nearly 5,000 companies around the world but it owns these through other ETFs instead of owning those companies directly. One Fund pays nearly 16 basis points in underlying fund fees but benefit on the cost and liquidity front by not having to manage an extremely large basket of stocks, including some in emerging markets and international small cap stocks that are thinly traded.

Main Disadvantages Of One-Fund ETFs

Underlying ETF Risk: The Fund is subject to the same risks as the Underlying ETFs in which it invests.

Costs of Investing in Underlying ETFs: When the Fund invests in Underlying ETFs, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the Underlying ETFs’ expenses (including operating costs and management fees). Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the Underlying ETF. An investor who puts money in these products is paying two layers of fees – the first layer goes to the manager of the ETF of ETFs and the second layer goes to meet the expense ratio of the underlying ETFs. Hence, the advisor should weigh these costs against their promise of performance.

Some traders feel its not worth to have an expense ratio of .51% to buy 5 ETFs and you are better off buying them individually while some feel that ETFs of ETFs is a good idea and definitely worth a try. No matter which part of the fence you sit in it would be interesting to watch the market trend of this fund of funds.

Although ETFs initially appealed to cost-conscious investors not known for high turnover in their portfolios, these vehicles have since been embraced by more active investors. ETFs will undoubtedly continue to evolve as new innovative strategies. As with all ETF products, it pays for the advisor or end investor to do some homework and learn what is "inside" their given ETF.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. Please read the prospectus carefully before you invest.

ETF for Natural Gas potential for APRIL MAY 2010

May 2010 may be the month that this vital commodity may see some higher numbers!!
An over supply has absolutely no relation to the pricing or value of a commodity.

Last year Exxon Mobil paid about 41 $ Billions for XTO Energy for its technology and access to the resources. People at Exxon Mobil are smarter than any of the industry and their move has a deep meaning which market people may not understand.
Natural Gas is a very good alternative for the imported Crude oil and sooner or later, perhaps soon during 2010 there would be some breakthrough in its new usage and there may be some news which will trigger its declining prices and stop the leak in the price, which started its steep fall in the historical month of July 2008, when Crude Oil futures began their decline.
Crude oil made a fairly good move in 2009 but the Natural Gas did not follow it.
Crude oil made over 100% move during second quarter of 2009 but the Natural Gas remained weak and it has only declined in price gradually.

I see a greater usage of Natural Gas in industries, homes and even motor vehicles. There could be some new developments in its price range soon.
Based on my studies I see that

UNG : ETF Natural Gas as anyone can see has been on decline since the last market crash of Fall 2008 from 65s to literally 6.90s.
It appears to be literally a dead commodity as the futures or ETF show each day a new decline.

In my projection I find that Natural Gas may begin some minor move from early April and then picking up from mid April and early May peaking by Mid May for an intermediate short trend. This potential up move may give NG futures and UNG and other related stocks a new life in this apparently depressed commodity.

Top ETF this week

ETF Last Range Change
DXO 4.35 0-0 0 NaN%
EEM 41.1 40.75-41.388 0.2 0.48%
FAS 97.43 95.94-100.9 0.22 0.22%
FAZ 13.35 12.89-13.58 -0.0425 -0.32%
FXI 40.83 40.44-41.13 0.81 1.98%
GLD 108.59 106.82-108.7 1.81 1.69%
IWM 67.81 67.56-68.57 -0.028 -0.04%
QQQQ 48 47.74-48.33 0.05 0.1%
SPY 116.582 116.12-117.42 -0.068 -0.06%
SRS 5.95 5.8-6 0.05 0.85%
USO 38.83 38.55-39.12 -0.07 -0.18%
XLE 56.08 55.72-56.44 0.02 0.04%
XLF 16 15.91-16.2 0.02 0.12%

ETFMarket - Exchange Traded Funds Market Review

ETFs are the reality of financial markets and they are more and more favored by savvy investors and traders.

We plan to offer a real easy guide to these markets and offer forecast and potential of the Exchange Traded Funds by sectors and areas.