ETF News & Commentary
SAN DIEGO (ETFguide.com) - Investors interested in natural resources stocks have another commodity ETF to choose from. The Thomson Reuters/Jeffries CRB Global Commodity Index Fund (NYSEArca: CRBQ) from ALPS Funds has just debuted.
The fund’s underlying index currently contains 145 commodity related stocks. Top holdings include Monsanto, Exxon Mobil and Potash. Companies within the index are market capitalization weighted and fund holdings are rebalanced quarterly.
The fund will compete with other commodity ETFs that employ a similar strategy, like the Market Vectors RVE Hard Assets Producers ETF (NYSEArca: HAV). HAV was launched one year ago and has around $52 million in assets. Through the end of August, HAV gained 26.69% year-to-date.
CRBQ is ALPS' third ETF and the fund’s annual expense ratio is 0.65%.
In related news, trading in the United States Short Oil Fund (NYSEArca: DNO) began today. The product aims to provide inverse or opposite performance to the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. According to the prospectus, DNO’s annual expense ratio 0.60%.
Another newly launched ETF is the SPDR S&P VRDO Municipal Bond ETF (NYSArca: VRD). The fund provides access to municipal variable rate demand obligations (VRDOs), an asset class offering attractive yields and stable income that is exempt from federal taxes and often state and local income taxes as well.
VRD is benchmarked to the price and yield performance of the S&P National AMT-Free Municipal VRDO Index. As of September 21, 2009, the index, which includes VRDOs issued by U.S. states, local governments, or agencies, provides exposure to more than 377 issues.
“Developed in response to increasing demand for VRDOs, the SPDR S&P VRDO Municipal Bond ETF provides investors with access to a hard to reach corner of the municipal bond market where the required minimum denomination for issue purchase is $100,000,” said James Ross, senior managing director at State Street Global Advisors. “In offering precise, cost efficient exposure to VRDOs, the SPDR S&P VRDO Municipal Bond ETF provides a wide range of investors with an opportunity to enhance the diversification and tax efficiency of their portfolios.”
VRD’s annual expense ratio is 0.20%.
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