Four Budding ETF Rivalries Worth Watching (NORW, SIL, SMIN)

Loading...
Loading...
The U.S. ETF industry is now home 1,440 products with over $1.2 trillion in combined assets under management according to the latest data from the ETF Industry Association and with the pace of new
ETF introductions racing higher
those numbers are sure to increase. What's also likely to increase is the number of interesting rivalries in the ETF universe, the logical result of some ETF sponsors issuing new funds that
look a lot like old ones
. As has been noted, the first to market advantage is an important one for ETFs, but it's no guarantee that ETF will always be
king of its respective hill
. With that let's have a look at four potentially compelling ETF rivalries that, not surprisingly, all involve new iShares funds. In no particular order...
Hi Ho Silver
The battle for silver mining supremacy between the Global Silver Miners ETF
SIL
, the first silver mining ETF, and the iShares MSCI Global Silver Miners Fund
SLVP
could be really interesting if for no other reason than that SLVP's expense ratio of 0.39% is a lot cheaper than SIL's 0.65%. Still, SIL has a distinct first-to-market advantage here and as the last few days have proven, SLVP's timing has been pretty lousy. Since silver is so volatile, it's reasonable to surmise an ETF like SIL is used by short-term traders. In other words, SIL is optionable and has good liquidity. The same cannot yet be said of SLVP.
India Small Cap Style
This one could be interesting because it involves three contenders: The EGShares India Small Cap ETF
SCIN
, the Market Vectors India Small Cap ETF
SCIF
and the new iShares MSCI India Small Cap Index Fund
SMIN
. Unfortunately for SMIN, it may also fall victim to
bad timing
Loading...
Loading...
. Trading on BATS may prove to be a boon or a problem for the new iShares offering and while iShares doesn't have a penchant for closing ETFs, it will be interesting to see how short of a leash is given to SMIN.
EM Dividends
There's a longstanding rivalry between iShares and State Street Global Advisors because they're the two biggest ETF sponsors and that rivalry could potentially expand as the SPDR S&P Emerging Markets Dividend ETF
EDIV
and the iShares Emerging Markets Dividend Index Fund
DVYE
. EDIV just celebrated its first birthday and now holds almost $300 million in AUM, but DVYE, which oddly enough has the same inception date as EDIV, is off to a fine start with almost $11 million in AUM in less than two weeks of trading. The combination of emerging markets and dividends should be enough to ensure both of these ETFs stick around for a long time.
Nice In Norway
We figured
this one had potential
That is the battle between the Global X Norway ETF
NORW
and the iShares MSCI Norway Capped Investable Market Index Fund
ENOR
. ENOR has done alright in terms of AUM since its late January debut and just over 9,200 shares per day in average volume is fair for a new ETF, but ENOR has lagged its Global X rival since its debut and that's a factor that cannot be overlooked in crowning a winner in any ETF showdown.
Loading...
Loading...
Posted In: Long IdeasNewsSector ETFsShort IdeasDividendsDividendsSpecialty ETFsNew ETFsSmall Cap AnalysisEmerging Market ETFsFuturesCommoditiesPre-Market OutlookMarketsTrading IdeasETFsGlobal X Fundsishares
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...