ETF Showdown: A Dash For Trash
Take off those white gloves and prepare to get dirty because there might just be something to investing in trash. No, this won't require actually rummaging through dumpsters, but this week's “ETF Showdown” is one various organized crime folks populating the Northeast may love because we're pitting two waste management-focused ETFs against each other.
The contenders are the more well-seasoned Market Vectors Environmental Services ETF (NYSE: EVX) and the newer Global X Waste Management ETF (NYSE: WSTE). EVX is nearly five years old while WSTE made its debut in April.
EVX's title may be somewhat deceiving, but don't be fooled: This ETF is every bit as trashy (not in a bad way) as WSTE is. Republic Services (NYSE: RSG), Waste Management (NYSE: WM) and Waste Connections (NYSE: WCN) combine for about 25% EVX's weight and all three are top-10 holdings in the 22-stock ETF.
Those three names combine for about 22% of WSTE's weight and all are top-10 holdings in that ETF, which is home to 28 stocks. Other names you be familiar with found in both funds include Darling International (NYSE: DAR), Veolia Environment (NYSE: VE) and Stericycle (Nasdaq: SRCL).
Alright, so what are some of the key differences? Perhaps by virtue of its first-to-market status, EVX wins the assets under management battle with $31.6 million compared to $2.16 million for WSTE, though for the latter that's not too shabby in just two months of trading. WSTE features an expense ratio of 0.65% compared to 0.55% for EVX.
Despite being the newer of the pair, WSTE has nearly double the average daily volume of EVX. With either fund, you'll be involved with an ETF that is heavily weighted to the U.S., but WSTE isn't lacking for international exposure, a fact highlighted by its weights of nearly 15% and 12% to China and France
At this point, we would give the nod to WSTE for international exposure and a nod to EVX for the better expense ratio, but if we're going to bottom-line things, EVX has sharply outperformed WSTE since late April. Then again, to bottom-line things even further, shares of Stericycle and Waste Management have outperformed both ETFs over the same time frame. It looks like one investor's trash is another investor's treasure.
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