New trends in ETF’s
Until recently, the only ETF choices were related to traditional structuring. However, starting in 2003, a new type of ETF was introduced into the market – the fundamental ETF. Since then, a great emphasis has been put on quantitatively filtered ETF’s, equal weighted ETF’s, and dividend weighted ETF’s. The idea behind the large influx of non-traditional ETF’s is an attempt to outperform the traditional types both in reward and risk control. The characteristics of the new trends include:
- Quantitatively filtered
- Mostly equal weighted
- Frequently rebalanced
- Industry and sub-industry focused
Major providers competing in this space include:
- Rydex
- Powershares
- Xshares
- First Trust
- Claymore
- Wisdomtree
Sarasota Capital Strategies prefers using ETF’s issued from the above providers for the reasons above.
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