ETF Innovators: 24 New Product Ideas
Below are 24 new exchange-traded product (ETP) ideas, which are organized by the following sectors and themes: transports (six), healthcare (11), Non-Healthcare (five), and commodities (two). The 20 stock-based ETF ideas below are structured as semi-active indexes with monthly rebalancing to choose the top rated stocks as active components on an equal-weight basis.
Most of the ideas represent first-to-market ideas and several such as Air and Maritime Transport could be developed as inverse/short ETFs since there are already products filed or on the market which provide long exposure to these two groups.
Many of the ideas below are expected to benefit from the new administration's plans for healthcare reform and infrastructure spending. Also, the ideas have performed well over the past year despite the overall market declines since many of the indexes are based on small/mid-cap companies in defensive industry groups.
Click on any of the links below for more details and performance statistics for each of the new index and ETP ideas.
The Global Transport Composite Index
is a dynamic, semi-active which consists of 45 companies on an equal weight basis from each of the five global transport indexes listed below with the indicated number of top rated companies chosen from each index.
The Healthcare Composite Index
is a dynamic, semi-active index which consists of the 40 top-rated companies on an equal weight basis from the first eight global healthcare indexes listed below and represents an alternative strategy to existing health composite ETFs -- which tend to have highly correlated returns and over-weight exposure to the same widely held companies.
Non-Healthcare & Defensive:
– Market Cap Leaders by Nation – Exxon Mobil (XOM)