Columbia Research Enhanced Emerging Economies ETF (ARCA: ECON)

Columbia Research Enhanced Emerging Economies ETF (ARCA:ECON), Quote.Headers.trade-ideas

Columbia Emerging Markets Consumer ETF

Consumer Cyclical

Communication Services

Consumer Defensive

Healthcare

Technology

Other

The fund will invest at least 80% of its net assets in securities of Emerging Markets Consumer companies which comprise the index and the advisor generally expects to be substantially invested at such times with at least 95% of its net assets invested in these securities. It is non-diversified.

Long Ideas

Emerging Markets

Emerging Market ETFs

Markets

Trading Ideas

ETFs

Emerging Global Shares Dow Jones Emerging Marketsnsumer Titan Index Fund

ECON

HILO

INCO

Emerging Global Shares INDXX India Small Cap Fund

SCIN

Survey Says Investors Are Bullish On Emerging Markets

Sector ETFs

Checking The Pulse Of The Emerging Markets Consumer

Specialty ETFs

Previews

Pre-Market Outlook

BIZD

Natural Gas ETF To Face Pressure; Japan Inspires Bets On Casino ETF

Columbia Research Enhanced Emerging Economies ETF

ECONOMIC INVST TR LTD by Economic Investment Trust Limited

Some of this year&#39;s top asset-gathering exchange-traded funds are emerging markets funds, indicating investors are increasingly comfortable revisiting once disappointing developing markets equities. There are, however, additional data points that suggest investors are bullish on emerging markets stocks and ETFs.
In its most recent <a href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.cmidintranet.com%2Fpublic%2Fpdf%2FEM_Investor_Sentiment_Survey_2Q17-Emerging_Markets.pdf&amp;esheet=51665476&amp;newsitemid=20170807005682&amp;lan=en-US&amp;anchor=Emerging+Markets+Investor+Sentiment+Survey&amp;index=1&amp;md5=ee36153944714eec546093424a7910ca">Emerging Markets Investor Sentiment Survey</a>, ETF issuer Columbia Threadneedle Investments notes investor sentiment toward emerging markets is overwhelmingly positive with the survey &ldquo;score of 850 out of 1000 indicates that investors clearly have a positive outlook for emerging markets over the next 12 months. In fact, sentiment is up 35 percent from Q4 2016 and 72 percent from Q4 2015,&rdquo; <a href="http://www.businesswire.com/news/home/20170807005682/en/Investor-Outlook-Emerging-Markets-Overwhelmingly-Positive-Columbia">according to a statement</a>.
Columbia Threadneedle issues some well-known emerging markets ETFs, including the Columbia Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) and the Columbia India Consumer ETF (NYSE: <a class="ticker" href="/stock/inco#NYSE">INCO</a>), one of this year&#39;s best-performing single-country emerging markets funds.
<h3>Investors Are Bullish</h3>
Columbia Threadneedle&#39;s survey indicates asset allocators are increasingly bullish on emerging markets stocks, a view that makes sense with the MSCI Emerging Markets Index up more than 26 percent year to date, or more than double the almost 12 percent returned by the S&amp;P 500.
&ldquo;The majority (72 percent) of survey respondents have a positive outlook for emerging markets equities over the next 12 months, a significant shift both from Q4 2016 when 45 percent of respondents had a positive outlook and Q4 2015 when only 26 percent of respondents felt this way,&rdquo; said the fund issuer. &ldquo;One quarter of respondents have a neutral outlook and only 3 percent have a negative outlook for emerging markets in the next 12 months. As the sentiment among respondents has shifted, so have allocation expectations.&rdquo;
The firm&#39;s other ETFs include the India Small-Cap ETF (NYSE: <a class="ticker" href="/stock/scin#NYSE">SCIN</a>), which is up 42.4 percent year to date; and the Columbia EM Quality Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>).
<h3>Not A Crowded Trade</h3>
A favored battle cry on Wall Street is that many hot trades are also crowded trades, but after years of investors ignoring emerging markets, it is fair to say this trade is far from crowded.
&ldquo;While current emerging markets allocation levels are between 1 and 10 percent (69 percent of respondents), advisors and investment professionals surveyed are trending toward higher allocations,&rdquo; said Columbia Threadneedle. &ldquo;For example, 36 percent of respondents have a higher EM allocation than they did 12 months ago and 58 percent expect to increase their EM allocation over the course of the next 12 months. Only 4 percent of respondents have a lower allocation today than 12 months ago and 3 percent expect to lower their allocation in the coming 12 month period.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/08/9884829/small-cap-relief-in-emerging-markets">EM Small-Cap ETF Surges</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/08/9878484/a-view-on-the-vietnam-etf">A View On The Vietnam ETF</a>

When emerging markets stocks and exchange-traded funds were really ripping higher several years ago, market observers would frequently cite the consumer as the next bastion of growth in developing economies.
That prompted enthusiasm for ETFs such as the Columbia Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>). Previously known as the EGShares Emerging Markets Consumer ETF (and still listed on Google Finance as "EGA Emerging Global Shares Trust"), ECON is one of the largest and most seasoned options among emerging markets consumer ETFs. The ETF tracks the Dow Jones Emerging Markets Consumer Titans 30 Index.
That index just turned 7, underscoring the point that index and ETF providers have been delivering access to consumer trends in developing economies for a while.
<h3>Emerging Market Environment</h3>
&ldquo;The emerging market consumer is not a new theme and since the inception of the Dow Jones Emerging Markets Consumer Titans 30 Index (1/8/2010), these companies have outperformed broader EM indices. Over three year rolling return periods (rolled monthly), the Dow Jones Emerging Markets Consumer Titans 30 Index has consistently outperformed both the MSCI EM Index and the S&amp;P Emerging BMI Index under almost all market conditions,&rdquo; according to <a href="http://www.indexologyblog.com/2017/01/17/capturing-the-worlds-largest-growth-story-the-emerging-markets-consumer/">S&amp;P Dow Jones Indices</a>.
<h3>Delving Deeper Into ECON</h3>
ECON, which rose 5 percent last year, allocates 22.5 percent of its weight to South Africa, Africa&#39;s second-largest economy behind Nigeria. China is the ETF&#39;s second-largest geographic exposure at 21.1 percent. The other BRIC economies, Brazil, Russia and India, combine for about 28 percent of ECON&#39;s weight.
In total, the ETF offers exposure to 11 countries. Three are Latin American economies and four are Southeast Asian economies, including that region&#39;s largest, Indonesia.
&ldquo;There is no denying demographics &ndash; emerging market populations will continue to grow rapidly and the emerging market consumers will continue to increase their wealth. However, broad emerging market benchmarks do not target this exposure [emphasis omitted], as the consumer sectors make up less than 20 percent of those benchmarks,&rdquo; according to S&amp;P Dow Jones Indices.
Consumer discretionary stocks are <a href="http://www.columbiathreadneedleetf.com/emergingmarkets/econ">54.1 percent of ECON&#39;s weight</a> while consumer staples names represent 43.2 percent. By comparison, discretionary and staples stocks combine for just over 17 percent of the MSCI Emerging Markets Index.
The average market value of the 30 stock&#39;s in ECON&#39;s underlying index is nearly $29 billion.

<a href="http://www.benzinga.com/topic/ETFs">ETF</a> Outlook for Friday, June 27, 2014 (UNG, ECON, BIZD, BJK)

U.S. Natural Gas ETF (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>)

	After the inventory numbers were released yesterday the price of <a href="http://www.benzinga.com/topic/natural-gas">natural gas</a> tumbled. UNG closed the session down 2.7 percent at a new one-month low.
 The ETF looks set to test important support at the $23.50-$24.00 area, which it has been able to hold since a breakout in January. Being able to hold support is bullish, but on the flipside the ETF has struggled to rally above $27 and eventually it must either fail to hold support or rally above resistance at $27.
Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/14/06/4663768/2-etfs-that-movement-in-lennar-and-apple-could-drive">2 ETFs That Movement In Lennar And Apple Could Drive</a>

	Market Vectors Gaming ETF (NYSE: <a class="ticker" href="/stock/bjk#NYSE">BJK</a>)

	The casino stocks were on the move yesterday on positive news about the sector. Investors are hoping <a href="http://www.benzinga.com/topic/japan">Japan</a> will open the country to major casinos in a decision due this fall. On top of that, Macau continues to grow at approximately 10 percent year-over-year. 

The chart shows BJK closing above the 50-day moving average for the first time since April and in the midst of breaking a downtrend. This is very bullish action for the ETF.

	EG Shares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>)

	The emerging market stocks held up much better than the developed nations yesterday as the U.S. closed lower. ECON showed great relative strength with a gain of 0.9 percent to close within one percent of the best level since last October. Over the last few years ECON has been able to outperform the broader emerging market ETFs as the companies that cater to the local residents have found more success.

	Market Vectors BDC Income ETF (NYSE: <a class="ticker" href="/stock/bizd#NYSE">BIZD</a>)

	A big move by the niche sector yesterday sent all related ETFs higher.
 Investors often invest in business development companies for the above-average income. The current dividend yield on BIZD is 8.0 percent, which is extremely attractive in a low-yield environment. The sector will be volatile due to the high dividend and when interest rates start to increase it could have a negative affect on the income stocks. That being said, interest rates have struggled to move higher and 8 percent is tough to ignore.

The emerging markets have not been the hottest place to invest past year as they began to lag the developed markets. The iShares MSCI Emerging Market ETF (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) is down six percent in 2013 versus a gain of 16 percent for the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).

	Individual emerging market country ETFs have performed even this year, with several hitting new 52-week lows. So why in the world would an investor even considering investing in the asset class? 
For starters, the valuations for the emerging markets have come down to attractive levels versus the developed markets and the growth potential remains above average.

	There is also the fact that not all emerging market countries are the same and not all ETFs are created equally. This is where the one emerging market ETF to own is introduced.

	The EG Shares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) is a basket of 30 stocks that are in the consumer goods and services industries. 
The top countries represented include Mexico, South Africa, Brazil, India, and Chile. In 2013 the ETF is up two percent, easily beating the benchmark, MSCI Emerging Markets Index. Going back to the beginning of 2012 the ETF is up 23 percent versus a gain of nine percent for EEM.

	The reason for the outperformance is simple.

	The companies in ECON cater to the local customer, whereas EEM is composed of companies that are multinationals and generate a majority of their business around the globe. 
As the middle class continues to expand in the emerging markets, the locals will have the ability to spend more disposable income and the beneficiaries will be the local retailers. ECON is the best-positioned play for the true growth of the emerging markets.

The One Emerging Market ETF To Own (ECON, EEM)

Here is the ETF Professor's ETF Watch List for Wednesday, September 25, 2013.

Keep an eye on the Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="/stock/vti#NYSE">VTI</a>).

The iPath DJ-UBS Coffee TR Sub-Index ETN (NYSE: <a class="ticker" href="/stock/jo#NYSE">JO</a>) looks terrible.

The Direxion Daily Financial Bear 3X Shares (NYSE: <a class="ticker" href="/stock/faz#NYSE">FAZ</a>) is looking interesting.

Let's see if the Market Vectors Gaming ETF (NYSE: <a class="ticker" href="/stock/bjk#NYSE">BJK</a>) makes a new high.

Emerging markets plays of the day: ProShares MSCI UltraShort Emerging Markets (NYSE: <a class="ticker" href="/stock/eev#NYSE">EEV</a>), EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) and the WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>).

Forex play of the day: ProShares UltraShort Yen (NYSE: <a class="ticker" href="/stock/ycs#NYSE">YCS</a>).

Bond play of the day: Market Vectors High-Yield Muni ETF (NYSE: <a class="ticker" href="/stock/hyd#NYSE">HYD</a>).

News

Broad U.S. Equity ETFs

Short Ideas

New ETFs

Currency ETFs

ProShares UltraShort MSCI Emerging Markets

Market Vectors High Yield Municipal Index ETF

iPath DJ-UBSffee Subindex Total Return ETN

ETFs to Watch September 25, 2013 (BJK, FAZ, YCS)

The emerging markets consumer theme has been one marked by both peril and profit potential.

	There is the unmistakable allure that, by some estimates, consumer spending in just China and India will reach $10 trillion per year by 2020. In the years leading up to 2020, the total is expected to be $64 trillion and that is just for China and India.

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs">Prepare For Chindia's Consumer Spending Surge With ETFs</a>.

	Then there have been the times, such May and June of this year, when emerging markets consumer ETFs remind investors that these are, after all, emerging markets ETFs. That means when investors are not favoring developing world equities, consumer funds are not immune from the ensuing shocks.

	However, emerging markets ETFs have picked up the pace in recent and investors putting cash to work with some of those funds. Consumer ETFs are not just going along for the ride, some are leading. Just look at the following group.

	EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) 
	The EGShares Emerging Markets Consumer ETF is something of a gold standard among emerging markets consumer funds. ECON recently celebrated its third birthday and has over $1 billion in assets under management. Impressively, the fund has seen positive inflows this year, a remarkable feat given the billions in capital investors have yanked from other emerging markets ETFs.

	ECON <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3893703/as-global-stocks-rally-dont-forget-these-etfs">has been in rally mode</a>. Since August 29, the fund has surged 12.5 percent. That performance is made all the more impressive when considering ECON's largest country weights do not trade at the discounted valuations of other emerging markets.

	Mexico, South Africa, Brazil and India combine for nearly two-thirds of ECON's weight. Despite this year's emerging markets tumble, all of those markets are still considered expensive relative to the broader emerging markets universe. Speaking of South Africa, ECON's largest holding is South African media firm Naspers. Naspers happens to be one of the largest shareholders in Tencent Holdings, the Chinese Internet giant that <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3920493/make-sure-your-internet-etf-holds-this-stock">has boosted several Internet ETFs this year</a>.

	EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>) 
	The EGShares Emerging Markets Domestic Demand ETF is just over a year old and while it also hails from EGShares, it takes a different approach than ECON. EMDD is not limited exclusively to discretionary stocks, though its name might imply as much. Actually, the fund is conservatively positioned at the sector level with staples leading the way at 29.6 percent.

	Discretionary names account for 27.4 percent of EMDD's weight, but telecom, utilities and health care combine for over 42 percent. Said another way, EMDD holds stocks of companies that produce goods and services emerging markets consumers need to buy with a sprinkling of discretionary names.

	The thing is staples stocks almost always trade at rich valuations <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3443630/u-s-staples-etfs-are-expensive-but-so-are-em-equivalents">and that goes for the emerging markets versions as well</a>. EMDD's index has a trailing P/E ratio of almost 19, high compared to other emerging markets benchmarks. To EMDD's credit, its recent performance justifies the premium valuation.

	The fund has surged 11.3 percent since August 29. India, Mexico, China, South Africa and Brazil are EMDD's top country exposures and combine for about 79 percent of the fund's geographic weight.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author does not own any of the securities mentioned here.

Global

EMDD

Emerging Markets Consumer ETFs Roar Back To Life

Some exchange traded funds focused on international markets have been sturdy performers as of late. 

To the surprise of some investors, among this week's global ETF leaders are plenty of emerging markets ETFs, including downtrodden Brazil and India fare. 

Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3886878/some-em-etfs-were-pretty-good-in-august">Some EM ETFs Were Pretty Good In August</a>.

The resurgence for international ETFs comes as investors were not shy about pulling money from exchange traded products last month. August was the worst month for ETF outflows <a href="http://www.benzinga.com/markets/bonds/13/09/3883177/after-stellar-july-etfs-shed-15-billion-in-august">since early 2010</a>. However, the outflows data reveal an important point: That the bulk of the outflows, $13.8 billion to be precise, were attributable to the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).

Said differently, investors pulled money from U.S. stocks. Some Europe ETFs actually saw inflows and while many emerging markets ETFs are struggling on the flows front, performance for some is starting to pick up. Those points could be signs the following are worth considering over the coming weeks.

EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>)
While investors have been pulling cash from all types of emerging markets ETFs this year, EGShares says it <a href="http://www.benzinga.com/news/13/09/3893529/egshares-to-liquidate-12-of-its-etfs">has raked in more than $400 million</a> in new investments this year. ECON, the firm's largest ETF, is a big reason why.

Year-to-date, outflows from emerging markets funds are flirting with the $12 billion market, but inflows to ECON are flirting with $370 million. That could be a sign investors are still willing to bet <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2858514/the-definitive-guide-to-em-consumer-etfs">on the growth of the emerging markets consumer</a>.

Brazil and India ETFs have been pleasant surprises this week and investors that want to participate in that upside without the commitment of a single-country fund should consider ECON because the fund devotes over 27 percent of its combined weight to those two countries.

AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE: <a class="ticker" href="/stock/aadr#NYSE">AADR</a>)
The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF is actively managed fund with a highly concentrated lineup of just over 30 holdings mixed between developed and developing markets. Unheralded AADR has returned over seven percent year-to-date, but that does not tell the entire story. AADR can serve as a portfolio complement to funds benchmarked to the MSCI EAFE Index, which AADR has <a href="http://finance.yahoo.com/news/actively-managed-etf-boasts-sparking-151756839.html">outpaced over the past three years</a>.

Important to AADR's success is what the ETF does not include in its lineup. The ETF "generally passes on businesses in leveraged, slower-growing sectors such as energy, basic materials, utilities or financials, which dominate the international indices. Instead, the focus is on traditional growth sectors like technology, consumer discretionary / staples and healthcare," <a href="http://advisorshares.com/fund/aadr">according to AdvisorShares</a>.

No single holding can represent more than 10 percent of AADR's weight and sector exposure is capped at 45 percent while the fund limits total emerging markets exposure to 35 percent. Most of the fund's current developing world exposure goes to low beta Taiwan and Chinese technology names, which have <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3767598/leave-the-banks-take-this-china-etf">been stellar performers this year</a>.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Disclosure: Author does not own any of the securities mentioned here.

Intraday Update

AADR

As Global Stocks Rally, Don't Forget These ETFs

Emerging Global Advisors, the company behind the EGShares ETF brand, said it will close 12 of its ETFs that have not gained traction with investors.

	"EGA provides investors with tools that address developing markets allocation needs," said Robert Holderith, founder of EGA, <a href="http://www.dailyfinance.com/2013/09/05/emerging-global-advisors-announces-fund-closures/">in a statement</a>. "As part of this ongoing commitment and our regular product line review, we identified an opportunity to streamline our existing offering. These changes are consistent with our dedication to delivering tools that fulfill unmet investor needs."

	New York-based EGShares focuses exclusively on emerging markets ETFs and in the case of some of the funds being shuttered, the firm was first to market when the funds debuted. The 12 funds EGShares is closing are as follows: The EGShares GEMS Composite (NYSE: <a class="ticker" href="/stock/agem#NYSE">AGEM</a>), EGShares Financials GEMS (NYSE: <a class="ticker" href="/stock/fgem#NYSE">FGEM</a>), EGShares Consumer Goods GEMS (NYSE: <a class="ticker" href="/stock/ggem#NYSE">GGEM</a>), EGShares Health Care GEMS (NYSE: <a class="ticker" href="/stock/hgem#NYSE">HGEM</a>), EGShares Industrials GEMS (NYSE: <a class="ticker" href="/stock/igem#NYSE">IGEM</a>), EGShares Basic Materials GEMS (NYSE: <a class="ticker" href="/stock/lgem#NYSE">LGEM</a>) and the EGShares Energy GEMS (NYSE: <a class="ticker" href="/stock/ogem#NYSE">OGEM</a>).

	Trading in the funds will cease after October 4, according to the statement. The firm is also closing the EGShares Technology GEMS (NYSE: <a class="ticker" href="/stock/qgem#NYSE">QGEM</a>), EGShares Telecom GEMS (NYSE: <a class="ticker" href="/stock/tgem#NYSE">TGEM</a>), EGShares Utilities GEMS (NYSE: <a class="ticker" href="/stock/ugem#NYSE">UGEM</a>), EGShares Consumer Services GEMS (NYSE: <a class="ticker" href="/stock/vgem#NYSE">VGEM</a>) and the EGShares Emerging Markets Metals &amp; Mining ETF (NYSE: <a class="ticker" href="/stock/emt#NYSE">EMT</a>).

	EGShares said the 12 ETFs being closed represent just four percent of its total assets under management. Although investors have been pulling cash from emerging markets ETFs this year, EGShares said its ETFs have gathered more than $400 million of net assets this year. The EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) has been one of the leaders in terms of inflows to emerging markets ETFs this year.

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3886878/some-em-etfs-were-pretty-good-in-august">Some ETFs Were Pretty Good In August</a>.

	EGShares <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3840238/another-new-etf-for-em-dividend-investors">has also recently introduced two new dividend ETFs</a>, the EGShares Emerging Markets Dividend Growth ETF (NYSE: <a class="ticker" href="/stock/emdg#NYSE">EMDG</a>) and EGShares EM Dividend High Income (NYSE: <a class="ticker" href="/stock/emhd#NYSE">EMHD</a>).

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

AGEM

EMDG

EMHD

Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund

FGEM

GGEM

HGEM

IGEM

LGEM

OGEM

QGEM

TGEM

UGEM

VGEM

EGShares To Liquidate 12 Of Its ETFs

Broadly speaking, August was another rough month for emerging markets ETFs, both the equity and bond varietals.

	Increased speculation about imminent tapering of the Federal Reserve's quantitative easing program was one reason investors pulled $3.5 billion from emerging markets ETFs last month.

	That brought the year-to-date redemption total from developing world equity funds to $11.1 billion, according to BlackRock.

	Related: <a href="http://www.benzinga.com/markets/bonds/13/09/3883177/after-stellar-july-etfs-shed-15-billion-in-august">After Stellar July, ETFs Shed $15 Billion In August</a>.

	The iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) dropped 4.3 percent last month, a loss that looks tame in comparison to some single-country funds, particularly those <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3858875/as-rupee-heads-to-70-india-etfs-feel-the-pain">offering exposure to India and Indonesia</a>.

	Indeed, August was another glum month for emerging markets ETFs, but that is a broad statement. Some developing world funds actually saw inflows last month while others delivered positive returns. Both traits could be signs of more positive things to come later this year. Consider the following ETFs.

	EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) 
	The EGShares Emerging Markets Consumer ETF did register negative returns last month, but through the end of the second quarter, ECON was easily ahead of some of its larger, diversified rivals. Not that ECON, which celebrates its third birthday this month, is small. ECON has over $1billion in assets under management because it has hauled in <a href="http://www.dailyfinance.com/2013/09/04/egshares-emerging-markets-consumer-etf-ticker-econ/">$367 million this year</a> even as investors have raced out of comparable funds.

	ECON brought in $41.6 million last month, although the fund was hampered by exposure to Mexico, India and Indonesia. Equities in those nations slid in August and that trio accounts for over a third of ECON's country weight.

	WisdomTree China Dividend Ex-Financials Fund (NASDAQ: <a class="ticker" href="/stock/chxf#NASDAQ">CHXF</a>) 
	Though it may be getting lost in the negativity surrounding so many other emerging markets, some China ETFs have been gaining steam in recent weeks. It could be investors finally embracing compelling valuations or a recent batch of decent data out of the world's second-largest economy. Whatever the case may be, marquee China ETFs are perking up and looking good compared to some other investable Asian markets.

	It should not be forgotten that some of the struggles endured by China funds this year <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3694076/last-ditch-effort-to-be-long-china-with-these-etfs">were caused by liquidity concerns</a> in the country's banking system, a scenario the WisdomTree China Dividend Ex-Financials Fund helps investors avoid by leaving banks out of its lineup.

	CHXF gained 1.3 percent, but its upside has been accelerating with a 3.6 percent gain over the past week. Or has it? Since June 24 CHXF has surged 14 percent, putting it just ahead of the largest China ETF. And CHXF comes with a distribution yield of 5.37 percent.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author owns none of the securities mentioned here.

Dividends

CHXF

Some EM ETFs Were Pretty Good In August

WisdomTree (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>), the fifth-largest U.S. ETF issuer by assets, has filed plans with the Securities and Exchange Commission to possibly introduced three new emerging markets ETFs.

	Among the possible new introductions New York-based WisdomTree filed for is the WisdomTree Emerging Markets Consumer Growth Fund. That ETF will draw constituents from a country universe of Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.

	Index eligibility requirements include a market value of at least $1 billion and average daily trading volume of at least $500,000 for each of the six months preceding the index rebalance, <a href="http://www.sec.gov/Archives/edgar/data/1350487/000119312513174177/d526366d485apos.htm#pro526366_1">according to the filing</a>.

	With a focus on emerging markets consumers, the WisdomTree Emerging Markets Consumer Growth Fund shapes up to be a potential rival to the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>), which debuted in 2010.

	WisdomTree also filed plans for the WisdomTree Emerging Markets Low Volatility Equity Fund. The starting universe is the 500 largest companies by market capitalization that are incorporated and traded in any of the following 17 emerging market nations: Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey, <a href="http://www.sec.gov/Archives/edgar/data/1350487/000119312513174197/d526305d485apos.htm#pro526305_1">according to the filing</a>.

	That ETF's index is volatility weighted annually and caps sector and country exposure at 20 percent. The new ETF will face intense competition in the form of the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>) and the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>).

	WisdomTree also filed plans for the WisdomTree Emerging Markets Dividend Growth Fund, which will track an index that "is a fundamentally weighted index that consists of emerging market dividend-paying stocks with growth characteristics," <a href="http://www.sec.gov/Archives/edgar/data/1350487/000119312513174220/d526313d485apos.htm#pro526313_2">according to the filing</a>.

	WisdomTree is already a dominant purveyor of emerging markets dividend ETFs as the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) has nearly $5.5 billion in assets under management. The WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>) has almost $1.55 billion in AUM.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Wisdomtree Emerging Markets Smallcap Dividend Fund

EELV

EEMV

WETF

WisdomTree Planning Three New EM ETFs

Here is the ETF Professor's ETF Watch List for Tuesday, March 26, 2013.

The ProShares UltraShort MSCI Europe (NYSE: <a class="ticker" href="/stock/epv#NYSE">EPV</a>) should remain in play.

Give the Direxion Daily Financial Bear 3X Shares (NYSE: <a class="ticker" href="/stock/faz#NYSE">FAZ</a>) a look.

Keep an eye on the United States Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>).

Emerging markets plays of the day: Direxion Daily Russia Bear 3X Shares (NYSE: <a class="ticker" href="/stock/russ#NYSE">RUSS</a>), WisdomTree Emerging Markets Small-Cap Dividend ETF (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>) and EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>).

Forex play of the day: PowerShares DB US Dollar Index Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

Bond play of the day: iShares Barclays Aggregate Bond (NYSE: <a class="ticker" href="/stock/agg#NYSE">AGG</a>).

RUSS

PowerShares DB US Dollar Index Bullish Fund

ETFs to Watch March 26, 2013 (AGG, EPV, UNG)

The Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) is one of several popular ETFs tracking staples stocks. With over $6.4 billion in assets under management, XLP is home to 44 stocks, including an array of familiar names such as Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>), Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and Colgate-Palmolive (NYSE: <a class="ticker" href="/stock/cl#NYSE">CL</a>).

	In a testament to the strength of the staples sector this year, Costco (NASDAQ: <a class="ticker" href="/stock/cost#NASDAQ">COST</a>) is the worst performer among XLP's top-10 holdings with a year-to-date gain of 3.6 percent. Four of the ETF's top-10 holdings have posted double-digit returns this: Procter &amp; Gamble, PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>), Mondelez (NASDAQ: <a class="ticker" href="/stock/mdlz#NASDAQ">MDLZ</a>) and CVS Caremark (NYSE: <a class="ticker" href="/stock/cvs#NYSE">CVS</a>).

	All that has the staples sector looking pricey on a valuation basis. In late January, consumer staples rated as the most expensive of 10 sectors <a href="http://www.minyanville.com/trading-and-investing/etfs/articles/Consumer-Staples-Stocks-Looking-Pricey-AAPL/1/22/2013/id/47551?refresh=1">trading at 3.4 times book value</a>.

	That is on a global basis. As of March 21, XLP had a P/E ratio of nearly 17 and a price-to-book ratio of nearly 3.7, <a href="https://www.spdrs.com/product/fund.seam?ticker=XLP">according to State Street data</a>. Those valuations may seem frothy, but investors looking for emerging markets staples exposure are going to encounter even richer valuations.

	Take the example of the iShares MSCI Mexico Capped Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>). Clearly, EWW is not a sector ETF. Tracking Latin America's second-largest economy means the ETF focuses on more than just staples stocks. However, among country-specific emerging markets ETFs, EWW has the largest allocation to staples stocks at almost 29.6 percent.

	While <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3095801/labor-reform-bolsters-long-term-bull-case-for-mexico-etf">recent reform initiatives</a> bolster the long-term bull case for EWW and Mexican equities, there are other issues to consider. Mexico recently lowered its benchmark interest rate to four percent, but inflation was 3.55 percent in February. That is fairly benign, but it also implies real growth rates (interest rates minus inflation) are not jaw-dropping.

	Additionally, EWW is richly valued relative to the broader emerging markets universe. The ETF has a P/E ratio of 26.34 and a price-to-book ratio of 3.83, <a href="http://us.ishares.com/product_info/fund/overview/EWW.htm?fundSearch=true&amp;qt=EWW">according to iShares data</a>. The iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) has a P/E of about 18.4 and a price-to-book of three.

	EWW is not the only example of a richly valued emerging markets ETF with a staples bias. The EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>), which has followed other diversified emerging markets ETFs lower this year, is not a staples-specific fund. However, ECON is close.

	Beverage makers and food and drug retailers combine for 31 percent of ECON's weight. Food producers garner another 14 percent while tobacco and personal goods makers combine for another 7.4 percent.

	South Africa, Brazil and India, three countries that combine for over 46 of ECON's weight, have been drags on the ETF this year. For the privilege of all that, investors get a <a href="http://www.emergingglobaladvisors.com/econ.cfm">trailing P/E of 23 and a price-to-book of 3.64</a>.

	The EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>) debuted in August 2012 and can already be counted among the pricey global staples ETFs. EMDD devotes 57 percent of its weight to China, India, South Africa and Brazil. In particular, the weights to China and India have the potential to make EMDD a compelling long-term play on the expectation that <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs">Chinese and Indian consumer spending could top $10 trillion by 2020</a>.

	However, that quartet of developing markets have struggled in 2013. Of the four largest ETFs tracking Brazil, China, India and South Africa, the best performer this year has been the iShares MSCI Brazil Capped Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>), which is off more than six percent.

	Investors will pay up with EMDD, which has a P/E ratio of 19.2, <a href="http://www.emergingglobaladvisors.com/emdd.cfm">according to EGShares data</a>.

	Ultimately, it can be said that it is not surprising that emerging markets ETFs with heavy staples exposure are more richly valued than their U.S.-focused equivalents. In a more a sanguine environment for developing world equities, investors might still be willing to pay up for added growth and out-performance. This year, however, the returns have not justified the added risk nor the frothy valuations of emerging markets ETFs with significant staples exposure.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>

COST

MDLZ

U.S. Staples ETFs Are Expensive, But So Are EM Equivalents

Here is the ETF Professor's ETF Watch List for Wednesday, February 6, 2013.

The iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>) should be in play again.

Give the PowerShares DB Agriculture Fund (NYSE: <a class="ticker" href="/stock/dba#NYSE">DBA</a>) a look.

Keep an eye on the WisdomTree LargeCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dln#NYSE">DLN</a>).

Emerging markets plays of the day: Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>), EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) and the Market Vectors Poland ETF (NYSE: <a class="ticker" href="/stock/plnd#NYSE">PLND</a>).

Forex play of the day: PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

Bond play of the day: WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: <a class="ticker" href="/stock/emcb#NASDAQ">EMCB</a>).

EMCB

PLND

ETFs to Watch February 6, 2013 (DLN, ECON, UUP)

In the ever-expanding world of emerging markets ETFs, some diversified funds still sit atop this corner of the exchange-traded products universe. For example, the Vanguard FTSE Emerging Markets Index (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) remain favorites of investors – both professional and retail.

Some investors choose to use an ETF such as EEM and VWO as their sole avenue for exposure to the developing world, but there are <a href="http://www.benzinga.com/news/13/01/3244921/wisdomtree-em-equity-income-etf-tops-5b-in-aum">plenty of other worthy options</a> when it comes to multi-country emerging markets funds.

In fact, one London-based asset manager is proving it is possible to use the likes of EEM, VWO and related fare simultaneously, in one portfolio, to deliver impressive risk-adjusted returns. Generation Asset Management, a unit of Canadian hedge fund giant Arrow Capital Management, uses a unique, systematic approach to investing in the developing world with the objective being superior risk-adjusted returns in what is often viewed as a volatile asset class..

Generation Asset's model portfolio rebalances on a weekly basis and is 50 percent benchmarked to the MSCI Emerging Markets Index and 50 percent to JP Morgan EMBI Global Core Index. That means the model features both equity and bond ETFs.

In addition to VWO, which currently represents about 25 percent of the model portfolio's equity-based weight, Generation Asset is using other, less heralded emerging markets ETFs such as the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>). ECON is heavy on local brands that emerging markets consumers are most familiar with, not multinational brands that only derive a sliver of their total sales from the developing world.

"We strongly believe in the EM consumer story," said Generation Asset analyst Bartlomiej Fraszczyk. Emerging market consumers do most of their business with familiar local or regional brands, and tend to have less affinity for developed world brands. We believe domestic demand will be the main driver of EM economies growth."

Fraszczyk said Generation Asset views ECON's country weights in a favorable light. South Africa, Mexico and Brazil combine for over 54 percent of the ETF's weight. Malaysia receives an allocation of 6.25 percent.

"Our observation is that over the period of the last three years South Africa, Mexico and Malaysia have consistently outperformed the MSCI EM Index," noted Fraszczyk. "We also like Brazil, India and Chile as they display unique consumer growth themes. The point is, the ECON provides us with a perfect country allocation split."

Betting on Dividends, Damping Volatility
A cornerstone of Generation Asset's rules-based model is capturing dividends while mitigating volatility. The dividend portion of the firm's model portfolio centers around the <a href="http://www.benzinga.com/news/13/01/3244921/wisdomtree-em-equity-income-etf-tops-5b-in-aum">rapidly growing WisdomTree Emerging Markets Income Fund (NYSE: </a><a class="ticker" href="/stock/dem#NYSE">DEM</a>) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>).

"We like the fact that these ETFs are sizeable in terms of assets and offer good liquidity," said Fraszczyk. "We value the WisdomTree research development work and new products creation innovation. We have seen those two ETFs being successful so far and we believe the dividend space will continue to grow in 2013."

DGS currently sports a 30-day SEC yield of 4.17 percent. Taiwan, Thailand and South Korea combine for almost 44 percent of that fund's country weight. DEM has a 30-day SEC yield of 3.87 percent. Taiwan, China, Russia and Brazil loom large in DEM, combing for over 51 percent of that ETF's weight.

When it comes to damping out emerging markets volatility, a theme that soared to the front of the <a href="http://www.benzinga.com/markets/bonds/12/12/3201914/how-to-play-2013s-top-etf-trends">ETF lexicon in 2012</a>, Generation Asset prefers the $915.6 million iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>). 

With lower volatility relative to the MSCI Emerging Markets Index, EEMV has easily outpaced EEM and VWO over the past year. Fraszczyk does not foresee ETFs such as EEMV overshadowing flagship funds such as EEM and VWO, but he likes EEMV's utility in limiting the model's downside equity risk while delivering alpha.

EEMV's ability to skirt volatility comes almost as much by way of what countries are excluded from the ETF as what markets the fund does offer exposure. Prominent allocations to Taiwan, China and South Korea are arguably not surprising. However, the fund features no exposure to India and Russia represents less than one percent of EEMV's weight.

Another Prominent Theme
Due to reduced correlations to U.S. equities, improving credit ratings and sturdy government balance sheets in many developing markets, emerging markets <a href="http://www.benzinga.com/markets/bonds/12/11/3066833/emerging-markets-bond-etfs-showing-post-election-mettle">bond ETFs soared last year</a>. Both in terms of assets gained and delivered returns.

Generation Asset's emerging markets fixed income holdings are the iShares J.P. Morgan USD Emerging Markets Bond Fund (NYSE: <a class="ticker" href="/stock/emb#NYSE">EMB</a>) and the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>). Fraszczyk sees both EMB and PCY as currently being in strong uptrends. It is hard to argue with that assessment as EMB is up 17.1 percent in the past year while PCY has surged almost 22 percent.

Investors continue to pour cash into these products. In just over two months, EMB has seen its assets under management grow to $7 billion from $6.2 billion. PCY had $2.5 billion in AUM in early November, but that number was almost $3.1 billion as of January 18.

On the surface, it may appear that owning both EMB and PCY is duplicative, but these funds have noticeable differences at the country level. For example, EMB's top-five country weights are Brazil, Russia, Turkey Mexico and the Philippines. PCY's are Turkey, Croatia, Romania, Hungary and Lithuania.

Generation Asset's current preference is for dollar-denominated emerging markets debt. However, the firm's model, which can be transposed across myriad regions with sufficient liquidity, can be custom-tailored to give clients exposure to local currency emerging markets bonds. 

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Bonds

iShares JPMorgan USD Emerging Markets Bond Fund

PowerShares Emerging Markets Sovereign  Portfolio

London Asset Manager Takes Diverse Approach to EM ETFs

Here is the ETF Professor's ETF Watch List for Wednesday December 26, 2012.

Keep an eye gold with the iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>).

Will energy stocks rebound in 2013? The Market Vectors Oil Services ETF (NYSE: <a class="ticker" href="/stock/oih#NYSE">OIH</a>) may hold the answer.

Grab some dividends with the PowerShares Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>).

Emerging markets plays of the day: Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>), Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>) and the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>).

Currency play of the day: CurrencyShares British Pound Sterling Trust (NYSE: <a class="ticker" href="/stock/fxb#NYSE">FXB</a>).

Bond play of the day: PowerShares Build America Bond Portfolio (NYSE: <a class="ticker" href="/stock/bab#NYSE">BAB</a>).

CurrencyShares British Pound Sterling Trust

PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

ETFs to Watch December 26, 2012 (BAB, IDX, OIH)

Some pundits just love to negatively chime in regarding the goings on in the exchange-traded product industry. Whether it is criticizing leveraged ETFs for sport, saying that low volume products should always be avoided or <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2994238/ignoring-sub-100m-etfs-a-costly-idea">saying that only those funds with $100 million or more in assets under management should be embraced, there are plenty of folks with plenty of opinions about ETFs.

Another realm of the ETF universe that draws plenty of criticism is nice, or narrowly focused products. There is some, emphasis on "some," validity to the criticism of niche ETFs. The world probably does not need the iPath Global Carbon ETN (NYSE: </a><a class="ticker" href="/stock/grn#NYSE">GRN</a>) or the UBS ETRACS Oil Futures Contango ETN (NYSE: <a class="ticker" href="/stock/oilz#NYSE">OILZ</a>).

In some cases, the market does get around to sending ETFs and ETNs with too much of a niche feel packing. ETFs tracking Hong Kong small-caps and fisheries may have seemed like good ideas at the time of inception, but the market did not warm to those products and the ETFs are no longer with us. 

There are some compelling points in favor of some niche ETFs. First, the market is overly saturated with S&amp;P 500 and other broad market ETFs. Second, many niche ETFs, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2955946/argument-for-low-volume-etfs-gains-steam">like their low asset, low volume counterparts</a>, deliver solid returns.

Defining Niche
Yes, it is fair to say a carbon ETN is a niche product. So are ETFs devoted to sub-sectors such as cloud-computing and Brazilian banks. In fact, the Global X Brazil Financials ETF (NYSE: <a class="ticker" href="/stock/braf#NYSE">BRAF</a>) was mentioned as niche play <a href="http://www.usatoday.com/story/money/personalfinance/2012/10/10/etf-deathlist-growing/1622671/">in a recent USA Today piece</a> on hyper-focused ETFs.

That piece says funds such as BRAF are risky. Risky compared to what? Brazil is Latin America's largest economy, home to some of the region's largest banks and the average market value of BRAF's constituents is over $12.2 billion, <a href="http://www.globalxfunds.com/BRAF">according to Global X data</a>. Over the past year and year-to-date BRAF has outperformed the larger and more mainstream iShares MSCI Brazil Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>).

As for the First Trust ISE Cloud Computing Index Fund (NASDAQ: <a class="ticker" href="/stock/skyy#NASDAQ">SKYY</a>), which was criticized for its narrow focus when it debuted in July 2011, that fund now has almost $72 million in assets under management. The median market cap of SKYY's holdings is $9.9 billion and it should be noted the ETF is not littered with unfamiliar stocks. Holdings include Oracle (NASDAQ: <a class="ticker" href="/stock/orcl#NASDAQ">ORCL</a>), Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) and Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>). SKYY is up 8.6 percent this year.

Expect More
Not all niche ETFs will survive. That much has been made clear, but then again, not all ETFs will survive period. Just look at some of the ETFs that have been shuttered this year. Scottrade's FocusShares lineup was by no means too narrowly focused. Those funds were essentially <a href="http://www.benzinga.com/news/12/08/2811812/scottrade-to-liquidate-focusshares-etfs">rivals to the sector SPDRs</a>, but all 15 were shuttered.

With the ETF market maturing and a glut of benign fund offerings already populating the market, investors have little use for another ETF holding Treasuries or another fund offering exposure to U.S.-based consumer staples stocks.

Some niche ETFs do thrive in terms of gaining assets and delivering returns. The assertion is supported by some ETFs that track the emerging markets consumer theme, arguably a niche concept. The Global X China Consumer ETF (NYSE: CHIQ <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs">has over $116 million in AUM</a> while the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) has $450 million in assets. In the past three months, those funds are up 16 percent and 12 percent, respectively.

Niche concepts can be found in the bond arena, too, but the evidence supports the notion that ETFs that give investors exposure to <a href="http://www.benzinga.com/markets/bonds/12/10/2995308/etfs-with-amazing-asset-growth">senior bank loans and emerging markets corporate bonds</a> are credible ideas. 

That much is clear as the PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>) has accumulated over $1.1 billion in AUM in less than two years of trading. The WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: <a class="ticker" href="/stock/emcb#NASDAQ">EMCB</a>) debuted in March and already has $88.3 million in AUM. 

BKLN, EMCB and some other narrowly focused <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/10/2992411/finding-etf-ways-to-participate-in-venezuelas-upside">bond ETFs</a> have proven popular with investors. Expect that trend to continue as income investors look for alternatives beyond low interest rate Treasuries.

For more on niche ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/10/2992411/finding-etf-ways-to-participate-in-venezuelas-upside">here</a>.

AMZN

BKLN

BRAF

GOOG

OILZ

ORCL

SKYY

Niche ETFs: The Next Frontier of Fear-Mongering

Here is the ETF Professor's ETF Watch List for Tuesday October 16, 2012.

The PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>) looks interesting.

Index play of the day: PowerShares QQQ (NASDAQ: <a class="ticker" href="/stock/qqq#NASDAQ">QQQ</a>).

The iShares MSCI Belgium Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ewk#NYSE">EWK</a>) is nearing some critical resistance.

Emerging markets plays of the day: iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), Global X Brazil Consumer ETF (NYSE: <a class="ticker" href="/stock/braq#NYSE">BRAQ</a>) and the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>).

Forex play of the day: PowerShares DB Dollar Bearish (NYSE: <a class="ticker" href="/stock/udn#NYSE">UDN</a>).

Bond play of the day: Vanguard Total Bond Market ETF (NYSE: <a class="ticker" href="/stock/bnd#NYSE">BND</a>).

BRAQ

iShares MSCI Belgium Ivestable Market Index Fund

PowerShares DB US Dollar Index Bearish Fund

ETFs to Watch October 16, 2012 (DZZ, EEM, QQQ)

After Monday, there will be just 15 trading days left before the 2012 U.S. presidential election. With the polls still tight, investors are understandably wondering how to prepare for either outcome, reelection for President Barack Obama or an upset by Republican challenger Mitt Romney. 

Analysts have been quick to <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2939541/s-p-highlights-election-etfs#">highlight sector ETFs</a> that could benefit from either result. While instructive, those ideas usually are not surprising. For examples, many have said financials will pop if Romney wins whereas a fund such as the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) stands to benefit if President Obama is re-elected. 

Investors looking for global ETFs that could be impacted by the election results need not look far. Those funds with heavy exposure to Mexico could be impacted by the 2012 U.S. election. As <a href="http://www.ft.com/intl/cms/s/0/2d2f75b2-13bb-11e2-9ac6-00144feabdc0.html#axzz29OHtdQMd">the Financial Times notes</a> both President Obama and Romney seem to be focusing on the black markets associated with Mexico, drugs and illegal immigration, at a time when Mexican companies are investing in bulk in the U.S.

Tired political rhetoric also obfuscates the fact that <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/08/2822061/mobius-chimes-in-on-mexico">Mexican equities are soaring this year</a>. The iShares MSCI Mexico Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>) is up 25.3 percent year-to-date compared to a 14.6 percent for the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). 

Since EWW, which has almost $1.4 billion in assets under management, debuted in the first quarter of 1996, there is a track record with which to work in assessing the ETF's post-U.S. election performances. Immediately following President Bill Clinton's 1996 re-election, EWW was trading around $11.38. Ninety days later, the ETF was higher by $1. 

There are some things to consider with EWW and President Clinton. He was a supporter of NAFTA and popular among Latino voters. Not to mention, U.S. equities performed well for most of his eight years in office. By the time the 2000 election rolled around, EWW had gained about 33 percent from its February 1997 levels.

The 2000 election was obviously historic due to the fact that winner was not readily apparent on Election Night, so over the following 90 days, EWW traded lower. President George W. Bush carried just 35 percent of the Latino vote in that election. However, his previous job as governor of Texas and desire to improve his standing with Latinos in 2004 may have been two catalysts that helped EWW gain almost 50 percent by the end of his first time.

President Bush <a href="http://www.washingtonpost.com/wp-dyn/articles/A26119-2004Dec25.html">garnered 44 percent of the Latino vote in 2004</a>. Whether or not that had anything to do with EWW tripling from November 2004 to May 2008 is certainly up for debate. EWW would plunge during the global financial crisis and by the time of the 2008 presidential election, the ETF had merely doubled from late 2000.

President Obama's popularity with Latinos is debatable as well, but polls indicate that demographic will begrudgingly vote for him before heaping praise on Romney. Those polls show a split on par with Gore/Bush in 2000 awaits (roughly two-thirds to Obama and the remainder to Romney.)

From its 2009 bottom, EWW has nearly quadrupled. Again, attributing that kind of move in an emerging markets ETF to any U.S. politician is tricky business. 

What is clear is that EWW has been a stellar performer this year and its good times can continue regardless of which candidate wins on November 6. Manufacturing jobs are departing China in favor of Mexico and that likely has little to do either U.S. party's policies. In other words, the candidate that will do the most to boost trade with Mexico and bolster the country's domestic economy will be the bigger benefit to EWW.

Speaking of Mexico's domestic economy, wages are rising, as the FT reported, giving a lift to the country's growing middle class. GDP growth could touch five percent this year. Those catalysts could make the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>) and the EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>) compelling bets. ECON allocates 19.6 percent of its weight to Mexico and the country accounts for almost 25 percent of EMDD's weight.

For more on Mexico and ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/08/2822061/mobius-chimes-in-on-mexico">here</a>.

Politics

Events

Post-Election, Keep an Eye on Mexico ETFs

Here is the ETF Professor's ETF Watch List for Wednesday October 10, 2012.

The Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) looked decent on Tuesday. Then again, so did the U.S. Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>).

Earnings play: Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>).

Keep an eye on the Market Vectors Semiconductor ETF (NYSE: <a class="ticker" href="/stock/smh#NYSE">SMH</a>).

Emerging markets plays of the day: WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>), SPDR S&amp;P China ETF (NYSE: <a class="ticker" href="/stock/gxc#NYSE">GXC</a>) and the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>).

Forex play of the day: ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>).

Bond play of the day: Market Vectors High-Yield Muni ETF (NYSE: <a class="ticker" href="/stock/hyd#NYSE">HYD</a>).

ETFs to Watch October 10, 2012 (EUO, HYD, UNG)

The emerging markets consumer has been a compelling, yet flummoxing theme for investors -- the allure of newly affluent (and soaring numbers of) new entrants to the middle class in the emerging world is alluring. ETF sponsors have met that demand with <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2858514/the-definitive-guide-to-em-consumer-etfs">an array of multi-country and country specific products</a>.

All that said, the emerging markets consumer has not been a guaranteed winner for investors. For example, one well-known ETF offering exposure to the Chinese consumer is off 19.4 percent since its debut nearly three years ago.

For investors looking to dip their toes into some emerging markets consumer ETFs, a good news has arrived. A study by Boston Consulting Group shows consumer spending in China and India is expected to reach a combined $10 trillion per year by 2020, <a href="http://www.moneycontrol.com/news/business/china-india-consumer-spending-to-triple-by-2020_764115.html">according to Reuters</a>.

In the years leading up to 2020, Boston Consulting predicts consumers in China and India will spend a combined $64 trillion, Reuters reported. Growing middle classes in China and India, Asia's largest and third-largest economies, respectively, are expected to drive the consumer spending boom. Investors can prepare for the trend with the following ETFs.

EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>)
The EGShares Emerging Markets Consumer ETF is arguably the gold standard when it comes to emerging markets consumer-focused funds. Since this is an emerging markets fund, it is bound to be more volatile than a comparable U.S.-focused ETF. However, it should be noted that ECON is more allocated toward staples equities such as food, beverage and tobacco producers, not consumer discretionary.

However, ECON only features a 10.5 allocation to India <a href="http://www.emergingglobaladvisors.com/econ.cfm">and no exposure to China.

Global X China Consumer ETF (NYSE: )
Investors looking for Chinese exposure might consider CHIQ, one of the more quiet ETFs with over $100 million in assets under management (it has almost $111 million in AUM). This is the fund referenced earlier that has lost 19 percent since inception.

On the upside, CHIQ is the </a><a href="http://www.benzinga.com/trading-ideas/long-ideas/12/07/2751264/4-etf-laggards-poised-for-upside-chiq-pnqi-xle">most direct route to the China consumer and the ETF is shedding its laggard status</a>. As was predicted several months ago, CHIQ was poised for some upside and the ETF has delivered, soaring almost 6% in the past month.

The EGShares India Consumer ETF (NYSE: <a class="ticker" href="/stock/inco#NYSE">INCO</a>)
Just as CHIQ in the world of China ETFs, INCO is an often forgotten member of <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2927355/koesterich-upgrades-india-to-neutral-from-underweight">India ETF universe</a>. Perhaps that will change with if Boston Consulting's forecasts prove accurate.

INCO shares an important trait in common with ECON and that is the ETF is much more heavily exposed to staples than discretionary names. INCO is by no means the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) in terms of being boring. 

Then again, that might be a good thing and INCO might be telling investors the Indian consumer is already perking up. On the basis that stocks and ETFs are forward-looking assets, INCO's 41.3 percent year-to-date gain could be foreshadowing increased strength in Indian consumer trends going forward.

First Trust ISE Chindia Index Fund (NYSE: <a class="ticker" href="/stock/fni#NYSE">FNI</a>)
The First Trust ISE Chindia Index Fund presents a useful option for investors on two levels. First, it eases the burden of picking between China and India. Second, the fund is not a full commitment to the consumer. FNI offers scant staples exposure, but discretionary names account for almost 23 percent of the fund's weight. 

FNI's largest holding holding is not a Chinese or Indian company. That honor goes to high-end handbag maker Michael Kors (NYSE: <a class="ticker" href="/stock/kors#NYSE">KORS</a>), which represents 8.7 percent of FNI's weight.

For more on emerging markets consumer ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2953265/under-the-hood-tilting-toward-emerging-markets">here</a>.

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Columbia Research Enhanced Emerging Economies ETF

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Columbia Research Enhanced Emerging Economies ETF (ARCA:ECON), Quote.Headers.trade-ideas