US-Listed ETFs Sorted by Asset Class and Year-to-Date Return
US-Listed ETFs Sorted by Asset Class and Year-to-Date Return
US-Listed ETFs Sorted by Asset Class and Year-to-Date Return
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Issue No. 126<br />
May 2011<br />
www.indexuniverse.com/ETFR<br />
Emerging Europe <strong>ETFs</strong>:<br />
From Russia With Love<br />
By Devin Riley<br />
Inves<strong>to</strong>rs in the broad-based emerging<br />
Europe <strong>ETFs</strong> may not be aware of it, but<br />
they love Russia, whether they like it or<br />
not. In a cap-weighted l<strong>and</strong>scape, Russia’s<br />
gargantuan economy (2010 GDP<br />
is estimated at $1.4 trillion) dwarfs its<br />
Eastern European neighbors. The two<br />
emerging Europe <strong>ETFs</strong> on the market—<br />
the iShares MSCI Emerging Markets<br />
Eastern Europe ETF (NYSE Arca: ESR)<br />
<strong>and</strong> the SPDR S&P Emerging Europe ETF<br />
(NYSE Arca: GUR)—both offer outsize<br />
exposure <strong>to</strong> Russia: The country gobbles<br />
up 63 percent of the SPDR, <strong>and</strong> more<br />
than 72 percent of the iShares fund.<br />
Before you get <strong>to</strong>o caught up in<br />
Russia’s influence on the emerging Europe<br />
<strong>ETFs</strong> though, it’s helpful <strong>to</strong> step<br />
back <strong>and</strong> look at the emerging markets<br />
l<strong>and</strong>scape. What exactly encompasses<br />
“emerging Europe”? Are any European<br />
countries truly “emerging”?<br />
Emerging Markets:<br />
Getting Technical<br />
Emerging is a slippery term for an economy,<br />
<strong>and</strong> the distinction between “emerging”<br />
<strong>and</strong> “developed” can be highly<br />
subjective. Thankfully, there is some consensus<br />
among a few big organizations—<br />
the IMF, the World Bank—about what<br />
belongs where.<br />
Generally, emerging markets are considered<br />
<strong>to</strong> be those that are industrializing<br />
<strong>and</strong> growing rapidly, have diversified<br />
exports (e.g., they’re not solely oil producers)<br />
<strong>and</strong> meet a baseline per-capita<br />
income. People commonly categorize<br />
emerging markets in a way that aligns<br />
with the well-established BRIC economies<br />
(Brazil, Russia, India, China): fast<br />
growing, with big populations <strong>and</strong> plenty<br />
of natural resources.<br />
Index providers, which have <strong>to</strong><br />
think beyond politics <strong>and</strong> look <strong>to</strong> the<br />
world of investing, go further 11<br />
IN THIS ISSUE<br />
Emerging European <strong>ETFs</strong> are largely<br />
dominated <strong>by</strong> Russian holdings. Does<br />
“emerging” Europe exist without Russia<br />
in the mix?<br />
Page 1<br />
Main Management’s Kim Arthur explains<br />
why EPOL is his favorite European ETF,<br />
<strong>and</strong> how it fits in<strong>to</strong> his firm’s strategy.<br />
Page 6<br />
Germany’s resilient economy has attracted<br />
plenty of attention from inves<strong>to</strong>rs, but<br />
only two <strong>ETFs</strong> provide targeted access.<br />
Page 7<br />
The EU <strong>and</strong> its holdouts have divided<br />
Europe in<strong>to</strong> two separate visions for<br />
inves<strong>to</strong>rs. What’s the difference?<br />
Page 9<br />
ETFR’s monthly data bank covers all U.S.-<br />
listed <strong>ETFs</strong> <strong>and</strong> ETNs, including assets,<br />
performance data <strong>and</strong> more.<br />
Pages 14-22<br />
News Highlights: FocusShares <strong>Return</strong>s,<br />
Trading Glitch Ensues; Wave Of Inverse<br />
Bond Funds Launch; DB, PowerShares<br />
Roll Out Sovereign Debt ETNs; Credit<br />
Suisse Debuts Leveraged Merger ETN …<br />
And much more!<br />
Pages 1-4<br />
UPDATES<br />
FocusShares <strong>Return</strong>s; Trading Glitch Ensues<br />
In the final days of March, FocusShares—<br />
now owned <strong>by</strong> Scottrade—returned <strong>to</strong><br />
the ETF market with the launch of 15<br />
funds tied <strong>to</strong> Morningstar indexes.<br />
Notably, many of the products are<br />
the cheapest, or among the cheapest,<br />
<strong>ETFs</strong> in their asset category. The funds<br />
are also commission free <strong>to</strong> Scottrade’s<br />
2 million clients as well as 800 financial<br />
advisors who are part of its Scottrade<br />
Advisor Services.<br />
The Focus Morningstar <strong>US</strong> Market<br />
Index ETF (NYSE Arca: FMU) has an<br />
annual expense ratio of 0.05 percent,<br />
0.01 percent cheaper than the Schwab<br />
U.S. Broad Market Equity ETF (NYSE<br />
Arca: SCHB). And the Focus Morningstar<br />
Large Cap Index ETF (NYSE Arca<br />
FLG)—also priced at 0.05 percent—is 1<br />
basis point cheaper than the Vanguard<br />
S&P 500 ETF (NYSE Arca: VOO).<br />
The remainder of the funds cover<br />
the midcap <strong>and</strong> small-cap size segments,<br />
the real estate market <strong>and</strong> the<br />
st<strong>and</strong>ard 10 sec<strong>to</strong>rs.<br />
In a strange twist, on their second<br />
day of trading, March 31, prices on 10<br />
of the newly launched funds became<br />
unhinged, leading <strong>to</strong> canceled trades,<br />
<strong>and</strong> dredging up memories of the<br />
“flash crash” of May 6, 2010.<br />
The erroneous trades, which occurred<br />
in the first 30 minutes of 3
Average Annual Total <strong>Return</strong> Comparison (as of 3/31/11)<br />
RSP. Beating the cap out<br />
®<br />
of the cap-weighted S&P 500<br />
Index since<br />
April 2003.<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
Rydex S&P 500 ® Equal Weight<br />
ETF (RSP) has outperformed the<br />
S&P 500 ® cap-weighted Index<br />
since its inception in April 2003.<br />
Should RSP be part of your<br />
clients’ well-allocated portfolio?<br />
Call 800.258.4332. Or visit<br />
www.rydex-sgi.com/equalweight<br />
0%<br />
1 <strong>Year</strong> 3 <strong>Year</strong>s 5 <strong>Year</strong>s<br />
Since Fund Inception<br />
4/24/03<br />
Rydex S&P 500 ® Equal Weight ETF (NAV)<br />
S&P 500 ® Equal Weight Index<br />
Rydex S&P 500 ® Equal Weight ETF (Market Close)<br />
S&P 500 ® Index<br />
Since Fund *Expense Inception<br />
1-<strong>Year</strong> 3-<strong>Year</strong> 5-<strong>Year</strong> Inception Ratio <strong>Date</strong><br />
Rydex S&P 500 ® Equal Weight ETF (NAV) 20.35% 7.36% 4.26% 10.56% 0.40% 4/24/03<br />
Rydex S&P 500 ® Equal Weight ETF (Market Close) 20.39% 7.14% 4.30% 10.56% 0.40% 4/24/03<br />
S&P 500 ® Equal Weight Index 20.98% 8.06% 5.00% 11.19% — —<br />
S&P 500 ® Index 17.31% 2.35% 2.62% 6.95% — —<br />
The intelligent pursuit of wealth.<br />
Performance displayed represents past performance which is not guarantee of future results. Investment return <strong>and</strong><br />
principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost.<br />
<strong>Return</strong>s reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance<br />
data quoted. For up-<strong>to</strong>-date fund performance, including performance current <strong>to</strong> the most recent month end, visit<br />
the Rydex|SGI web site at www.rydex-sgi.com. For additional information, see the fund’s prospectus. <strong>ETFs</strong> are subject<br />
<strong>to</strong> third party transaction fees/ commissions. Net asset value (NAV) is calculated <strong>by</strong> subtracting <strong>to</strong>tal liabilities from<br />
<strong>to</strong>tal assets, then dividing <strong>by</strong> the number of shares outst<strong>and</strong>ing. Market close is the last price at which shares are<br />
traded. Funds shares may trade at, above or below NAV.<br />
Rydex S&P 500 ® Equal Weight ETF seeks <strong>to</strong> replicate as closely as possible, before fees <strong>and</strong> expenses, the daily performance of the S&P 500 ® Equal Weight Index. S&P 500 ® Equal<br />
Weight Index is the equal-weight version of the S&P 500 ® Index. The index has the same constituents as the capitalization weighted S&P 500, ® but each company in the equal weight<br />
is allocated equally. Performance shown for the S&P 500 ® Index is for comparative purposes only. Each index is unmanaged <strong>and</strong> not available for direct investment. Index returns do<br />
not reflect any management fees, transaction costs or expenses.<br />
Rydex S&P Equal Weight ETF may not be suitable for all inves<strong>to</strong>rs. • The fund is subject <strong>to</strong> the risk that unanticipated early closings of securities exchanges <strong>and</strong> other financial<br />
markets may result in the fund’s inability <strong>to</strong> buy or sell securities or other financial instruments on that day. • In certain circumstances, it may be diffi cult for the fund <strong>to</strong> purchase<br />
<strong>and</strong> sell particular investments within a reasonable time at a fair price. • Investments in securities <strong>and</strong> derivatives, in general, are subject <strong>to</strong> market risks that may cause their prices<br />
<strong>to</strong> fluctuate over time. An investment in the fund may lose money. • Unlike many investment companies, the fund is not actively “managed.” This means that, based on market <strong>and</strong><br />
economic conditions, the fund’s performance could be lower than other types of funds that may actively shift their portfolio assets <strong>to</strong> take advantage of market opportunities or <strong>to</strong><br />
lessen the impact of a market decline.• Tracking error risk refers <strong>to</strong> the risk that the advisor may not be able <strong>to</strong> cause the fund’s performance <strong>to</strong> match or correlate <strong>to</strong> that of the<br />
fund’s underlying index, either on a daily or aggregate basis. Tracking error risk may cause the fund’s performance <strong>to</strong> be less than you expect. • Shares may trade below their net<br />
asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of the fund’s holdings. In addition, although the fund’s shares are currently listed on NYSE<br />
Arca, Inc. there can be no assurance that an active trading market for shares will develop or be maintained. • The fund is subject <strong>to</strong> the risk that large-capitalization s<strong>to</strong>cks may underperform<br />
other segments of the equity market or the equity market as a whole. See prospectus for more details.<br />
For more complete information regarding RydexShares, ® call 800.258.4332 or visit www.rydex-sgi.com for a prospectus <strong>and</strong> a summary prospectus (if<br />
available). Inves<strong>to</strong>rs should carefully consider the investment objectives, risks, charges <strong>and</strong> expenses of a fund before investing. The fund’s prospectus <strong>and</strong> its summary prospectus<br />
(if available) contain this <strong>and</strong> other information about the fund. Please read the prospectus <strong>and</strong> summary prospectus (if available) carefully before you invest or send<br />
money.<br />
“St<strong>and</strong>ard & Poor’s, ® ” “S&P, ® ” “S&P 500, ® ” “St<strong>and</strong>ard & Poor’s 500” <strong>and</strong> “500” are trademarks of St<strong>and</strong>ard & Poor’s Financial Services LLC, <strong>and</strong> have been licensed for use <strong>by</strong> Rydex|SGI <strong>and</strong> its affiliates.<br />
The product is not sponsored, endorsed, sold or promoted <strong>by</strong> St<strong>and</strong>ard & Poor’s, <strong>and</strong> St<strong>and</strong>ard & Poor’s makes no representation regarding the advisability of investing in the product.<br />
RydexShares ® are distributed <strong>by</strong> Rydex Distribu<strong>to</strong>rs, LLC (RDL). Security Inves<strong>to</strong>rs, LLC (SI) is a registered investment advisor, <strong>and</strong> does business as Security Global Inves<strong>to</strong>rs SM <strong>and</strong> Rydex Investments. SI <strong>and</strong><br />
RDL are affiliates <strong>and</strong> are subsidiaries of Security Benefit Corporation, which is wholly owned <strong>by</strong> Guggenheim SBC Holdings, LLC, a special purpose entity managed <strong>by</strong> an affiliate of Guggenheim Partners,<br />
LLC, a diversified financial services firm with more than $100 billion in assets under supervision. *The fund has adopted a distribution (12b-1) plan pursuant <strong>to</strong> which the fund may bear an annual<br />
12b-1 fee of up <strong>to</strong> 0.25%. However, no such fee is currently charged <strong>to</strong> the fund <strong>and</strong> no such fees will be charged prior <strong>to</strong> 3/01/2012.
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business, were canceled <strong>by</strong> the New York<br />
S<strong>to</strong>ck Exchange <strong>and</strong> the Nasdaq OMX,<br />
according <strong>to</strong> a spokeswoman at St. Louis-based<br />
Scottrade. Some of the affected<br />
funds briefly lost almost all of their value,<br />
while others lost anywhere from a quarter<br />
<strong>to</strong> 80 percent of their values, according<br />
<strong>to</strong> data from Bloomberg.<br />
Scottrade <strong>and</strong> Knight Capital Americas<br />
said in a joint press release that the<br />
broken trades were the result of an error<br />
<strong>by</strong> Knight, the lead market maker for the<br />
funds in question. The funds resumed<br />
normal trading after the problem was<br />
resolved, the press release said.<br />
Wave Of Inverse<br />
Bond Funds Launch<br />
With expectations of a bond-market<br />
sell-off on the rise, inverse bond <strong>ETFs</strong><br />
have been debuting left <strong>and</strong> right<br />
from late March in<strong>to</strong> early April.<br />
Direxion launched three on March<br />
23, including the Direxion Daily Total<br />
Bond Market Bear 1x Shares (NYSE<br />
Arca: SAGG), Direxion Daily 7-10 <strong>Year</strong><br />
Treasury Bear 1x Shares (NYSE Arca:<br />
TYNS) <strong>and</strong> Direxion Daily 20 <strong>Year</strong> Plus<br />
Treasury Bear 1x Shares (NYSE Arca:<br />
TYBS). Each comes with an annual net<br />
expense ratio of 0.65 percent.<br />
That same day, ProShares launched<br />
an inverse junk bond ETF. In all, from<br />
March 23 <strong>to</strong> April 5, the firm rolled<br />
out four different <strong>ETFs</strong> tied <strong>to</strong> the corporate<br />
<strong>and</strong> Treasury segments of the<br />
fixed-income market:<br />
• ProShares Short High Yield ETF<br />
(NYSE Arca: SJB)<br />
• ProShares Short Investment<br />
Grade Corporate ETF (NYSE<br />
Arca: IGS)<br />
• ProShares UltraShort 3-7 <strong>Year</strong><br />
Treasury ETF (NYSE Arca: TBZ)<br />
• ProShares Short 7-10 <strong>Year</strong> Treasury<br />
ETF (NYSE Arca: TBX)<br />
The ProShares funds each charge expense<br />
ratios of 0.95 percent.<br />
DB, PowerShares Roll Out<br />
Sovereign Debt ETNs<br />
In late March, Deutsche Bank rolled<br />
out three pairs of ETNs focused on German,<br />
Italian <strong>and</strong> Japanese sovereign<br />
debt futures that serve up single- <strong>and</strong><br />
triple-long exposure <strong>to</strong> their respective<br />
UPDATES<br />
indexes. The German bank uses Invesco<br />
PowerShares for marketing of the notes.<br />
The ETNs include:<br />
• PowerShares DB German Bund<br />
Futures ETN (NYSE Arca: BUNL)<br />
• PowerShares DB 3x German Bund<br />
Futures ETN (NYSE Arca: BUNT)<br />
• PowerShares DB Italian Treasury<br />
Bond Futures ETN (NYSE Arca:<br />
ITLY)<br />
• PowerShares DB 3x Italian Treasury<br />
Bond Futures ETN (NYSE<br />
Arca: ITLT)<br />
• PowerShares DB Japanese Govt<br />
Bond Futures ETN (NYSE Arca:<br />
JGBL)<br />
• PowerShares DB 3x Japanese Govt<br />
Bond Futures ETN (NYSE Arca:<br />
JGBT)<br />
The triple-exposure securities rebalance<br />
monthly, the same as all leveraged<br />
DB PowerShares products.<br />
The single-exposure ETNs each have<br />
an expense ratio of 0.50 percent, while<br />
the triple-exposure products have expense<br />
ratios of 0.95 percent.<br />
Credit Suisse Debuts<br />
Leveraged Merger ETN<br />
In early March, Credit Suisse launched a<br />
double-exposure exchange-traded note<br />
that attempts <strong>to</strong> profit from merger activity,<br />
in a follow-up <strong>to</strong> a similar, singleexposure<br />
ETN it launched in Oc<strong>to</strong>ber<br />
2010.<br />
The 2x Monthly Leveraged Credit<br />
Suisse Merger Arbitrage Liquid Index<br />
ETN (NYSE Arca: CSMB) is rebalanced<br />
monthly, <strong>and</strong> is a follow-on <strong>to</strong> the<br />
Credit Suisse Merger Arbitrage Liquid<br />
Index ETN (NYSE Arca: CSMA). Both<br />
securities aim <strong>to</strong> capture the spread<br />
between the price at which the s<strong>to</strong>ck<br />
of a target company trades after a<br />
proposed acquisition is announced,<br />
<strong>and</strong> the price which the acquiring<br />
company will pay.<br />
Credit Suisse said the ETN is designed<br />
<strong>to</strong> have lower volatility than<br />
equity markets <strong>and</strong> low correlation <strong>to</strong><br />
them. Gains are booked when deals are<br />
closed, <strong>and</strong> losses are incurred when<br />
deals break. The relatively slow, accretive<br />
return profile of the strategy makes<br />
it ideal for a leveraged version, a Credit<br />
Suisse official said.<br />
ETFR • May 2011 3
UPDATES<br />
Both CSMA <strong>and</strong> the double-exposure<br />
CSMB are based on an index that uses a<br />
quantitative methodology <strong>to</strong> track a dynamic<br />
basket of securities held as long<br />
or short positions <strong>and</strong> cash.<br />
The leveraged CSMB has an annual<br />
expense ratio of 0.55 percent, the same<br />
price as CSMA.<br />
Van Eck Launches<br />
Competing Colombia ETF<br />
Van Eck launched an equities ETF focused<br />
on Colombia, South America’s<br />
second-largest country, in mid-March.<br />
The Market Vec<strong>to</strong>rs Colombia ETF<br />
(NYSE Arca: COLX) competes directly with<br />
Global X Funds’ two-year-old Global X<br />
FTSE Colombia 20 ETF (NYSE Arca: GXG),<br />
but COLX is the cheaper of the two funds.<br />
COLX has an annual expense ratio of 0.75<br />
percent compared with GXG’s recently<br />
lowered net expense ratio of 0.78 percent.<br />
COLX, which tracks the Market Vec<strong>to</strong>rs<br />
Colombia Index, is designed as a<br />
“pure-play” exposure <strong>to</strong> companies either<br />
headquartered in Colombia or that<br />
derive most of their revenue from Colombia.<br />
Nearly a quarter of the mix is<br />
allocated <strong>to</strong> companies listed outside of<br />
Colombia that have significant business<br />
in the country. In addition, the ETF’s<br />
benchmark limits any one position <strong>to</strong> 8<br />
percent of the fund in an effort <strong>to</strong> keep<br />
the portfolio diversified <strong>by</strong> sec<strong>to</strong>r <strong>and</strong><br />
market capitalization, Van Eck said.<br />
Colombia has benefited from strong<br />
commodities price trends, solid exports<br />
<strong>and</strong> better access <strong>to</strong> credit in recent<br />
years, thanks <strong>to</strong> government policies<br />
that have opened up the country <strong>to</strong> foreign<br />
investment <strong>and</strong> allowed it <strong>to</strong> realize<br />
strong economic growth, a Van Eck<br />
representative noted.<br />
New IndexIQ ETF<br />
Tracks Ag Small-Caps<br />
IndexIQ rolled out a global agribusiness<br />
ETF on March 22 designed <strong>to</strong> tap in<strong>to</strong><br />
rising food prices <strong>and</strong> the alternative energy<br />
s<strong>to</strong>ry through a small-cap security.<br />
The IQ Global Agribusiness Small<br />
Cap ETF (NYSE Arca: CROP) joins Van<br />
Eck’s $3.8 billion, large-cap-focused<br />
Market Vec<strong>to</strong>rs Agribusiness ETF (NYSE<br />
Arca: MOO). CROP costs 0.75 percent,<br />
while MOO costs 0.56 percent.<br />
IndexIQ said the two funds have little<br />
overlap, with CROP’s portfolio focused on<br />
smaller companies in crop production,<br />
supplies <strong>and</strong> logistics, while MOO’s owns<br />
larger companies that are in the agricultural<br />
chemicals <strong>and</strong> operations sec<strong>to</strong>rs.<br />
CROP caps each sec<strong>to</strong>r allocation at<br />
25 percent of the portfolio. It owns securities<br />
from some 14 countries <strong>to</strong> maximize<br />
diversification. Its <strong>to</strong>p holdings<br />
at launch included Canada’s Viterra,<br />
the U.S.’ Trac<strong>to</strong>r Supply, Netherl<strong>and</strong>sbased<br />
Nutreco, Spain’s Ebro Foods <strong>and</strong><br />
Brazil’s Cosan.<br />
WisdomTree Debuts<br />
Asian Bond ETF<br />
WisdomTree Investments debuted an<br />
actively managed Asia ex-Japan bond<br />
fund denominated in local currency in<br />
mid-March.<br />
The WisdomTree Asia Local Debt<br />
Fund (NYSE Arca: ALD) will cast a wide<br />
net, covering China, Hong Kong, India,<br />
Indonesia, South Korea, Malaysia, Philippines,<br />
Singapore, Taiwan, Thail<strong>and</strong>,<br />
Australia <strong>and</strong> New Zeal<strong>and</strong>. The fund<br />
categorically excludes Japan, while Vietnam’s<br />
poor fundamentals mean that it<br />
didn’t make the cut for inclusion.<br />
ALD doesn’t use a benchmark;<br />
rather, its constituents are chosen <strong>by</strong> a<br />
WisdomTree investment committee focused<br />
on a number of parameters in a<br />
given country, including liquidity, debt<strong>to</strong>-GDP<br />
ratio, foreign reserves, inflation<br />
<strong>and</strong> unemployment.<br />
ALD has an expense ratio of 0.55<br />
percent.<br />
Schwab Plans To<br />
Use <strong>ETFs</strong> In 401(k)s<br />
Charles Schwab plans <strong>to</strong> lower 401(k) costs<br />
<strong>by</strong> steering assets, for the first time, <strong>to</strong>ward<br />
lower-priced passive index funds <strong>and</strong> <strong>ETFs</strong>,<br />
beginning this year. Should Schwab’s plan<br />
gain traction, it could seriously upset the<br />
world of defined-contribution retirement<br />
plans that’s dominated <strong>by</strong> actively managed<br />
mutual funds.<br />
The San Francisco-based company,<br />
which has a long-st<strong>and</strong>ing reputation as a<br />
discount broker <strong>and</strong> purveyor of low-cost<br />
funds, plans <strong>to</strong> begin rolling out the index<br />
mutual fund piece of its plan later this year,<br />
while the ETF portion will come <strong>to</strong> market<br />
sometime in 2012, a Schwab representative<br />
said. The company already runs about<br />
$200 billion in retirement assets.<br />
Schwab’s push is based on a study it<br />
published in September 2010 called “The<br />
New Rules of Engagement for 401(k)<br />
Success” that found that high costs <strong>and</strong> a<br />
lack of inves<strong>to</strong>r education have <strong>to</strong>gether<br />
conspired <strong>to</strong> limit the amount people<br />
save for their retirements, according <strong>to</strong><br />
the Schwab representative.<br />
EGPT Creations Resume<br />
Van Eck Global resumed creations of its<br />
Market Vec<strong>to</strong>rs Egypt Index ETF (NYSE<br />
Arca: EGPT) after the Egyptian exchange<br />
reopened on March 23. The New Yorkbased<br />
company halted creations in late<br />
January amid turmoil in the North African<br />
country that led <strong>to</strong> the closure of<br />
the Egyptian S<strong>to</strong>ck Exchange.<br />
The firm originally halted creations<br />
on EGPT on Jan. 31, during the unrest<br />
that hobbled daily life in Egypt <strong>and</strong><br />
ultimately led <strong>to</strong> the end of President<br />
Hosni Mubarak’s 30-year rule there.<br />
Throughout the seven-week episode,<br />
redemptions were still possible, Van<br />
Eck stressed in its prepared statement.<br />
At the close on March 22, EGPT was<br />
trading at a 12.8 percent premium <strong>to</strong><br />
its net asset value, or NAV, according <strong>to</strong><br />
data compiled <strong>by</strong> IndexUniverse.<br />
The Q’s Lose A ‘Q’<br />
Invesco PowerShares changed the ticker<br />
symbol on its popular Nasdaq-100 ETF,<br />
the PowerShares QQQ Trust (Nasdaq<br />
GM: QQQ) <strong>to</strong> “QQQ” from “QQQQ” so<br />
that the fund’s name matches its ticker.<br />
The change became effective on<br />
March 23, 2011. PowerShares emphasized<br />
in a prepared statement that everything<br />
else about the funds would<br />
remain exactly the same, including its<br />
listing on the Nasdaq exchange.<br />
The “Q’s,” as it is called <strong>by</strong> ETF industry<br />
insiders, had turnover of almost $1.052<br />
trillion in all of 2010, making it the thirdmost-liquid<br />
fund in the U.S. ETF universe<br />
after the large-cap SPDR S&P 500 ETF<br />
(NYSE Arca: SPY) <strong>and</strong> the small-cap iShares<br />
Russell 2000 Index Fund (NYSE Arca:<br />
IWM), according <strong>to</strong> data compiled <strong>by</strong> IndexUniverse.<br />
It had assets of nearly $23<br />
billion when the change <strong>to</strong>ok effect. <br />
4 ETFR • May 2011
T H E P O W E R S H A R E S D B<br />
COMMODITY INDEX<br />
TRACKING FUND<br />
To download a copy of the prospectus, visit PowerShares.com/DBCpro
Why I Own: EPOL<br />
iShares MSCI Pol<strong>and</strong><br />
Investable Market ETF<br />
Name: Kim Arthur<br />
Title: President<br />
Firm: Main Management<br />
Founded: 2002<br />
Location: San Francisco, CA<br />
AUM: $450 million<br />
All <strong>ETFs</strong>? Yes<br />
ETFR: Do you have a favorite ETF for European<br />
exposure?<br />
Arthur: Right now, we’re very interested<br />
<strong>and</strong> have owned—for full disclosure<br />
here—Pol<strong>and</strong> <strong>ETFs</strong>. There are two ways<br />
<strong>to</strong> play it: EPOL or PLND. You’re basically<br />
picking up EPOL for a trailing P/E of 13x. It<br />
has an adjusted return on equity of almost<br />
8 percent <strong>and</strong> yields about 2.5 percent.<br />
And what I find interesting is, when<br />
we’re kind of swimming around <strong>and</strong><br />
looking at ex-U.S., you pick up EPOL for<br />
about 1.5 multiple points cheaper. You’ve<br />
got about the same dividend yield. But<br />
you’re getting almost a point-plus higher<br />
return on equity. And, obviously, the<br />
growth rate is significantly higher.<br />
Pol<strong>and</strong> is one of the few countries that<br />
have actually raised rates since we hit the<br />
bot<strong>to</strong>m of the crisis. I think they’re ahead<br />
of the issue; they have positive real rates<br />
over there. They’re not sitting in an easy<br />
monetary policy situation.<br />
ETFR: Why adopt a single-country ETF approach,<br />
instead of using something more<br />
broad-based, like the Vanguard MSCI Europe<br />
ETF (NYSE Arca: VGK)?<br />
Arthur: We do like broad-based country<br />
exposure where we’re just looking for a<br />
country or sec<strong>to</strong>r or asset class exposure.<br />
But in this specific case, we’re trying <strong>to</strong><br />
get very granular with the countries that<br />
we really feel good about. We want <strong>to</strong><br />
make sure that we don’t have unintended<br />
consequences or unintended bets<br />
that you get from a shotgun approach,<br />
when you take a broad country basket or<br />
sec<strong>to</strong>r approach.<br />
That’s specific <strong>to</strong> the way this product<br />
is constructed. As a result, we’re kind of<br />
unconstrained <strong>by</strong> the benchmark. We<br />
can actually have zero exposure <strong>to</strong> countries<br />
that the benchmark has exposure<br />
<strong>to</strong>. But we’d better hope that we’re more<br />
right than wrong with regard <strong>to</strong> a country<br />
that we deleted, because otherwise<br />
it’s going <strong>to</strong> cause us some headaches.<br />
ETFR: Does the individual-country approach<br />
require more maintenance <strong>and</strong><br />
oversight than the “set it <strong>and</strong> forget it”<br />
stance that many inves<strong>to</strong>rs might take with<br />
a more regional approach?<br />
Arthur: It definitely does; I think there’s<br />
a lot more tactical maneuvering that<br />
you have <strong>to</strong> do, because those individual<br />
countries are kind of zigging <strong>and</strong> zagging.<br />
You either get opportunities or you’ve got<br />
flash points, where you need <strong>to</strong> pause <strong>and</strong><br />
consider if your thesis still holds true.<br />
This is a lot more of a h<strong>and</strong>s-on approach,<br />
<strong>and</strong> one that advisors can do<br />
themselves if they’re going <strong>to</strong> be dedicated,<br />
following all of the different metrics<br />
that you need <strong>to</strong> look at. If they look<br />
at that <strong>and</strong> say, “My real function is actually<br />
asset-gathering <strong>and</strong> servicing my clients,”<br />
then they’re probably better off either<br />
outsourcing <strong>to</strong> a manager like us, or<br />
taking the “set it <strong>and</strong> forget it” approach<br />
you mentioned, with periodic rebalancing<br />
when things get out of whack.<br />
ETFR: If inves<strong>to</strong>rs had <strong>to</strong> pick one or the<br />
other, why choose PLND vs. EPOL? Why go<br />
with Market Vec<strong>to</strong>rs instead of iShares?<br />
Arthur: The easiest question there would<br />
iShares MSCI Pol<strong>and</strong> Investable Market ETF (EPOL)<br />
Segment: Equity Pol<strong>and</strong>–Total Market<br />
Issuer: BlackRock<br />
Legal Structure: Open-End Fund<br />
Expense Ratio: 0.61%<br />
AUM: $134.6 million<br />
ADV (60-Day): $44.5 million<br />
Avg. Spread: 0.27%<br />
Competing Funds: PLND<br />
Data as of: 4/11/2011<br />
be, “Do you want pure MSCI exposure?”<br />
If you’re benchmarked against an MSCI<br />
index, then you’re better off buying EPOL.<br />
But if you want a little bit more of an<br />
active component, it would be PLND.<br />
PLND was first <strong>to</strong> market. When we started<br />
playing in Pol<strong>and</strong>, it was the only play<br />
out there. Now, obviously, you have EPOL<br />
<strong>and</strong> you can choose between the two of<br />
them. EPOL actually has become very liquid—it’s<br />
picked up. I think a lot of it is because<br />
there are a lot of MSCI benchmark<br />
managers out there. They just sit down<br />
<strong>and</strong> say, “Give me the MSCI pure-play.”<br />
ETFR: What do you mean <strong>by</strong> “more active”<br />
with PLND?<br />
Arthur: You’re not going right up against<br />
the MSCI benchmark. Many of Van Eck’s<br />
country <strong>ETFs</strong> use cus<strong>to</strong>m benchmarks. So<br />
you’re going <strong>to</strong> have a little bit more of<br />
what Van Eck has put in<strong>to</strong> it. We’ve used<br />
their Vietnam ETF [NYSE Arca: VNM] <strong>and</strong><br />
their Egypt ETF [NYSE Arca: EGPT].<br />
In Egypt’s case, a lot of the names that<br />
they have in that index are not indigenous<br />
companies sitting on the ground in Egypt,<br />
but doing business with Egypt. It allows<br />
the ETF <strong>to</strong> get exposure <strong>to</strong> those markets.<br />
I think that’s why Van Eck is first <strong>to</strong> market<br />
in a lot of these places.<br />
We typically will look through the sec<strong>to</strong>r<br />
exposure on two comparable <strong>ETFs</strong> like<br />
EPOL <strong>and</strong> PLND <strong>and</strong> ask, “Are we getting<br />
the sec<strong>to</strong>r exposure that we want? Is<br />
there <strong>to</strong>o much materials sec<strong>to</strong>r in PLND<br />
vs. EPOL?” If that’s the case, then maybe,<br />
all other things considered, we’ll pick the<br />
one that gives us the right exposure. <br />
May 26, 2010–April 11, 2011<br />
M J J A S O N D J F M<br />
2010 2011<br />
55.43%<br />
6 ETFR • May 2011
German <strong>ETFs</strong>: Now Or Never?<br />
By Paul Baiocchi<br />
When it comes <strong>to</strong> hunting for bargains<br />
in Europe in the past few years, all eyes<br />
have been on PIIGS, for better or worse.<br />
Portugal, Irel<strong>and</strong>, Italy, Greece <strong>and</strong> Spain<br />
have overshadowed more developed European<br />
nations in many inves<strong>to</strong>rs’ minds.<br />
But when the sovereign debt crisis boiled<br />
over last summer, inves<strong>to</strong>rs left the PIIGS<br />
behind <strong>and</strong> headed <strong>to</strong> Germany.<br />
As the continent’s largest <strong>and</strong> most dynamic<br />
economy, Germany holds much of<br />
the eurozone’s future in its h<strong>and</strong>s. During<br />
the summer meltdown, Germany’s status<br />
as the anchor of the eurozone meant any<br />
bailout plans had <strong>to</strong> be cleared <strong>by</strong> Berlin.<br />
The country proved incredibly resilient in<br />
the face of the global credit crisis, bouncing<br />
back from a 4.7 percent decline in<br />
GDP in 2009 <strong>to</strong> post a 3.6 percent rise in<br />
2010. Unlike its European brethren, Germany<br />
managed <strong>to</strong> keep unemployment<br />
below 10 percent even during the recession<br />
of 2008-09. In fact, Germany’s 7.4<br />
percent unemployment rate in 2010 was<br />
its lowest since reunification.<br />
Will Germany’s economy continue<br />
<strong>to</strong> power forward unabated? Or will the<br />
headwinds facing its economy, both internally<br />
<strong>and</strong> externally, overwhelm inves<strong>to</strong>r<br />
returns? While returns may not match<br />
those realized <strong>by</strong> inves<strong>to</strong>rs since the market<br />
bot<strong>to</strong>m, German-focused <strong>ETFs</strong> have significant<br />
positives in their favor right now.<br />
Currently, there are two <strong>ETFs</strong> that target<br />
Germany exclusively (see Figure 1):<br />
the well-established iShares MSCI Germany<br />
Index Fund (NYSE Arca: EWG), which<br />
launched in March 1996 <strong>and</strong> has nearly $3<br />
billion in assets; <strong>and</strong> the br<strong>and</strong>-new Market<br />
Vec<strong>to</strong>rs Germany Small-Cap ETF (NYSE<br />
Arca: GERJ), which launched in early April,<br />
just days before this issue went <strong>to</strong> print.<br />
A Bumpy Road Ahead?<br />
Despite its resiliency in recent times, the<br />
German economy is not without its warts.<br />
The German population is relatively old,<br />
with an average age of 44.9 years. This is<br />
a product of the country’s low birth rate<br />
as well as its low population growth rate,<br />
Will Germany’s<br />
economy continue<br />
<strong>to</strong> power forward<br />
unabated? Or will<br />
the headwinds<br />
facing its economy,<br />
both internally <strong>and</strong><br />
externally, overwhelm<br />
inves<strong>to</strong>r returns?<br />
both of which put Germany low in the<br />
global rankings, in the 17th percentile.<br />
More troubling, however, is the reliance<br />
of the eurozone on Germany. The<br />
sovereign debt issues of the eurozone<br />
have the potential <strong>to</strong> drag on the German<br />
economy, as any further bailouts<br />
will require significant German involvement.<br />
Not only do German banks have<br />
exposure <strong>to</strong> the sovereign issues of the<br />
PIIGS, but bailouts of its European counterparts<br />
would raise the specter of higher<br />
taxes, putting pressure on German consumers.<br />
Over 50 percent of German exports<br />
are <strong>to</strong> other European countries,<br />
making further economic turmoil in the<br />
region a significant risk <strong>to</strong> the continued<br />
prosperity of the German economy. A<br />
strong euro also makes German exports<br />
<strong>to</strong> the U.S. <strong>and</strong> China—which <strong>to</strong>gether<br />
currently receive over 14 percent of Germany’s<br />
exports—less competitive.<br />
As with virtually every country on<br />
the planet right now, Germany also has<br />
much <strong>to</strong> fear from inflation. German<br />
consumer prices have risen sharply in the<br />
first half of the year. The prices of all basic<br />
materials are on the rise, with the rise<br />
in the price of oil being exacerbated <strong>by</strong><br />
uncertainty in the Middle East. Because<br />
Germany has a daily deficit of over 2.5<br />
million barrels of oil <strong>and</strong> 81 billion cubic<br />
meters of natural gas, rising energy prices<br />
pose a significant economic threat <strong>to</strong><br />
company margins; specifically, iron <strong>and</strong><br />
steel producers. It should also be noted<br />
that Germany has very little <strong>to</strong> nothing<br />
in the way of domestic companies operating<br />
in the energy sec<strong>to</strong>r, meaning it is<br />
not only shelling out for things like natural<br />
gas <strong>and</strong> oil, it is not benefiting in any<br />
way from the rising prices.<br />
For inves<strong>to</strong>rs, these issues are likely <strong>to</strong><br />
impact newcomer GERJ more than the<br />
entrenched EWG; the small-cap fund has<br />
a far greater weight in the industrials <strong>and</strong><br />
consumer discretionary sec<strong>to</strong>rs at nearly<br />
50 percent of the fund, in addition <strong>to</strong> a<br />
negligible weighting in consumer staples<br />
(see Figure 2). Meanwhile, EWG’s collective<br />
weighting in those three sec<strong>to</strong>rs is less<br />
than 35 percent of its portfolio.<br />
The Good News<br />
Despite the potential pitfalls, Germany’s<br />
economy remains vital. The country<br />
boasts a highly skilled workforce <strong>and</strong> a<br />
literacy rate in excess of 99 percent. Seventy<br />
percent of the German economy<br />
comes from the service sec<strong>to</strong>r, bolstered<br />
<strong>by</strong> a reputation for tech-savviness <strong>and</strong><br />
the world’s most advanced telecommunications<br />
network.<br />
And despite their reliance on European<br />
buyers, the specific buyers—France,<br />
the Netherl<strong>and</strong>s, the U.K., Switzerl<strong>and</strong>,<br />
Belgium <strong>and</strong> Austria—are in much better<br />
shape than the faltering economies<br />
that make the headlines. Furthermore,<br />
Germany’s export growth <strong>to</strong> China has<br />
accelerated in recent years, as the world’s<br />
fastest-growing economy is now the<br />
country’s second-largest cus<strong>to</strong>mer.<br />
Tough Choices For Inves<strong>to</strong>rs<br />
The German economy has provided inves<strong>to</strong>rs<br />
with strong returns ever since the<br />
ETFR • May 2011 7
March 6, 2009 lows. iShares’ EWG has<br />
returned 87 percent since that bot<strong>to</strong>m,<br />
comparing favorably <strong>to</strong> broader international<br />
s<strong>to</strong>cks as represented <strong>by</strong> the widely<br />
followed iShares MSCI EAFE Index Fund<br />
(NYSE Arca: EFA), which returned “just”<br />
72 percent in that time period.<br />
EWG has been the only choice for Germanophiles<br />
for a long time, <strong>and</strong> as such,<br />
has amassed $3 billion in assets. It’s broadly<br />
diversified, <strong>and</strong> captures all the important<br />
sec<strong>to</strong>rs of the German economy.<br />
“EWG is pretty diverse,” said Matthew<br />
McCall, president of Penn Financial<br />
Group LLC <strong>and</strong> noted sec<strong>to</strong>r-focused<br />
advisor. “You have financials, consumer<br />
discretionary, industrials <strong>and</strong> materials all<br />
between 15-20 percent, although you<br />
do have a heavy focus on services within<br />
those <strong>to</strong>p four sec<strong>to</strong>rs.”<br />
Although the fund is a fair representation<br />
of the German economy, it’s<br />
heavily concentrated: 62 percent of the<br />
fund’s assets are invested in the <strong>to</strong>p 10<br />
holdings, <strong>and</strong> the average market cap<br />
is $50 billion. The <strong>to</strong>p 10 holdings are<br />
large multinational companies that derive<br />
the majority of their revenues in<br />
foreign countries. This is in line with the<br />
economic fundamentals of the German<br />
economy, which has the third-largest<br />
current account surplus in the world.<br />
The launch of Van Eck’s new small-cap<br />
fund (GERJ) gives inves<strong>to</strong>rs a new way <strong>to</strong><br />
play. The same firm also has a Germany<br />
midcap ETF in registration.<br />
Whether these funds catch on is largely<br />
dependent on whether they provide a<br />
true alternative.<br />
“Will the new funds focus on companies<br />
that are Germany specific?” asked<br />
McCall prior <strong>to</strong> GERJ’s launch. “Will<br />
they focus on the German consumer<br />
<strong>and</strong> the German economy, or will they<br />
be more like EWG, which owns large<br />
multinational firms like Siemens, BASF,<br />
Allianz <strong>and</strong> Baer?”<br />
GERJ’s small-cap focus could serve<br />
it very well on these vec<strong>to</strong>rs, attracting<br />
inves<strong>to</strong>rs who might be daunted <strong>by</strong> the<br />
<strong>to</strong>p-heavy nature of Germany’s large-cap<br />
market. With roughly 90 components,<br />
GERJ’s <strong>to</strong>p 10 holdings are just a third of<br />
the <strong>to</strong>tal portfolio, <strong>and</strong> the fund clearly<br />
has a much more diversified distribution<br />
across its holdings than EWG.<br />
Moreover, with 70 percent of German<br />
workers employed <strong>by</strong> small-cap<br />
companies (according <strong>to</strong> Van Eck), GERJ<br />
should be providing access <strong>to</strong> the “real”<br />
Germany, with less of the international<br />
noise seen <strong>by</strong> EWG—though it should<br />
be noted that there are multinationals in<br />
GERJ’s portfolio.<br />
However, the fund is less diversified in<br />
terms of sec<strong>to</strong>rs, with nearly 35 percent<br />
of its portfolio invested in industrials. The<br />
rest of the fund’s <strong>to</strong>p five sec<strong>to</strong>r weights<br />
range from a 15.8 percent weighting in<br />
information technology <strong>to</strong> a 9.7 percent<br />
weighting in health care, with consumer<br />
discretionary <strong>and</strong> financials falling between<br />
those two. Aside from materials,<br />
with a 9.5 percent weight, the remaining<br />
four sec<strong>to</strong>rs represented in the fund all<br />
have weights of 2.2 percent or less.<br />
Financials, consumer discretionary,<br />
industrials, materials, health care <strong>and</strong><br />
Figure 1<br />
Two <strong>ETFs</strong> Target Germany’s Markets<br />
Figure 2<br />
FUND<br />
Sources: ETF issuers; data as of April 6, 2011.<br />
Sec<strong>to</strong>r Weights: GERJ vs. EWG<br />
GERJ<br />
Sources: ETF issuers; data as of April 7, 2011.<br />
iSHARES MSCI<br />
GERMANY<br />
utilities are all <strong>to</strong>p sec<strong>to</strong>rs in EWG, with<br />
weights ranging from 9.1 percent for<br />
utilities <strong>to</strong> roughly 18.5 percent for financials.<br />
The remaining three sec<strong>to</strong>rs<br />
with any significant representation in the<br />
fund have weights ranging from 3.7 <strong>to</strong><br />
6.6 percent.<br />
With these allocations, there’s little<br />
doubt that GERJ will rise <strong>and</strong> fall more<br />
on the fate of Germany alone than the<br />
health of the eurozone.<br />
For inves<strong>to</strong>rs, that makes the decision<br />
about where <strong>to</strong> invest a simpler one<br />
than it used <strong>to</strong> be. If your investment<br />
thesis is that Germany will anchor recovery<br />
throughout the eurozone, <strong>and</strong> that<br />
German multinationals will drive global<br />
growth, then EWG is the logical choice<br />
<strong>to</strong> express that opinion. If you believe the<br />
resilience of the German economy will<br />
make it an isl<strong>and</strong> in a faltering Europe,<br />
then GERJ is more likely <strong>to</strong> deliver. <br />
MARKET VECTORS<br />
GERMANY SMALL-CAP<br />
Ticker EWG GERJ<br />
Exp Ratio 0.53% 0.55%<br />
<strong>Asset</strong>s (M) $2,918.7 $2.5<br />
Largest Holding Siemens AG, 11.2% MTU Aero Engines, 4.2%<br />
Inception 3/12/1996 4/4/2011<br />
EWG<br />
Industrials 34.5% Financials 18.5%<br />
Information Technology 15.8% Consumer Discretionary 16.6%<br />
Consumer Discretionary 14.9% Industrials 16.2%<br />
Financials 12.5% Materials 15.2%<br />
Health Care 9.7% Health Care 10.1%<br />
Materials 9.5% Utilities 9.1%<br />
Telecommunications 2.2% Information Technology 6.6%<br />
Consumer Staples 0.5% Telecommunications 3.9%<br />
Energy 0.2% Consumer Staples 3.7%<br />
Utilties 0.2% Other/Undefined 0.2%<br />
8 ETFR • May 2011
Eurozone Vs. Pan-European:<br />
Know The Difference<br />
By Carolyn Hill<br />
So you think you know Europe? Many<br />
U.S. inves<strong>to</strong>rs claim they have a h<strong>and</strong>le on<br />
the Old World, but the Europe of the past<br />
is rapidly evolving. The truth is, as the European<br />
Union has grown, a divergent line<br />
has formed. There are really two Europes<br />
now: the eurozone, with countries that<br />
have embraced the euro as their currency;<br />
<strong>and</strong> geographic Europe, a pan-European<br />
view that includes non-EU countries—<br />
namely, Denmark, Norway, Sweden,<br />
Switzerl<strong>and</strong> <strong>and</strong> the United Kingdom.<br />
Inves<strong>to</strong>rs chasing exposure in Europe<br />
through <strong>ETFs</strong> have <strong>to</strong> choose between<br />
these two visions of the continent: <strong>ETFs</strong><br />
with holdings in what is widely considered<br />
the “pan-European” region, <strong>and</strong> <strong>ETFs</strong> that<br />
only cover the “eurozone.” The former includes<br />
the SPDR STOXX 50 (NYSE Arca:<br />
Figure 1<br />
FEU), the PowerShares BLDRS Europe 100<br />
ADR (NasdaqGM: ADRU), the iShares S&P<br />
Europe 350 (NYSE Arca: IEV) <strong>and</strong> the Vanguard<br />
MSCI Europe ETF (NYSE Arca: VGK).<br />
The latter includes the SPDR Euro STOXX<br />
50 (NYSE Arca: FEZ) <strong>and</strong> the iShares MSCI<br />
EMU (NYSE Arca: EZU). (See Figure 1.)<br />
It may seem like a shallow choice, but<br />
as with many ETF choices, the differences<br />
<strong>to</strong> your portfolio can be dramatic.<br />
One Continent, Two Choices<br />
The biggest missing pieces in eurozone<br />
<strong>ETFs</strong> are the large U.K. or Swiss s<strong>to</strong>cks<br />
that traditionally make up large percentages<br />
of pan-European funds. On average,<br />
the U.K. comprises 38.1 percent of<br />
pan-European <strong>ETFs</strong>, while Switzerl<strong>and</strong><br />
accounts for 13.4 percent. That means<br />
the U.K. <strong>and</strong> Switzerl<strong>and</strong> drive 50 percent<br />
of pan-European ETF performance,<br />
making those products much different<br />
investments than the eurozone <strong>ETFs</strong>.<br />
(See Figure 2.)<br />
The drastically different holdings between<br />
both sets of European funds make<br />
sense, as half of the companies that pan-<br />
European <strong>ETFs</strong> invest in are off limits <strong>to</strong><br />
the eurozone <strong>ETFs</strong>. But the exclusion of<br />
U.K. <strong>and</strong> Swiss s<strong>to</strong>cks also makes a significant<br />
impact on each fund’s sec<strong>to</strong>r allocations,<br />
<strong>and</strong> this (combined with currency<br />
variance) is likely the more dramatic<br />
source of return differential.<br />
The U.K.’s tilts have a stronger impact on<br />
pan-European tilts than Switzerl<strong>and</strong>’s, but<br />
both matter. The U.K.’s higher concentration<br />
in energy pulls up that sec<strong>to</strong>r’s weight<br />
in the pan-European <strong>ETFs</strong>, while its lower<br />
industrials weighting pulls the same sec<strong>to</strong>r<br />
Eurozone And Pan-European <strong>ETFs</strong> Compared<br />
RETURNS<br />
FUND TICKER AUM (M) 1-MO 3-MO 1-YR SPREAD<br />
EXP.<br />
RATIO<br />
LARGEST<br />
COUNTRY<br />
LARGEST<br />
HOLDING<br />
EUROZONE<br />
SPDR Euro<br />
STOXX 50<br />
FEZ $170 -1.34% 9.50% 6.77% 0.13% 0.29%<br />
France<br />
37.05%<br />
Total<br />
5.59%<br />
iShares<br />
MSCI EMU<br />
EZU $873 -0.78% 8.98% 9.15% 0.06% 0.56%<br />
France<br />
30.78%<br />
Total<br />
3.47%<br />
PAN-EUROPEAN<br />
SPDR STOXX 50 FEU $38 -1.62% 5.80% 6.52% 0.52% 0.29%<br />
PowerShares<br />
BLDRS Europe<br />
100 ADR<br />
iShares S&P<br />
Europe 350<br />
Vanguard<br />
MSCI Europe<br />
ADRU $21 -1.90% 5.94% 8.92% 0.20% 0.30%<br />
IEV $1,343 -1.67% 5.87% 11.08% 0.04% 0.60%<br />
VGK $3,152 -1.88% 5.40% 11.60% 0.03% 0.14%<br />
U.K.<br />
37.92%<br />
U.K.<br />
47.34%<br />
U.K.<br />
34.08%<br />
U.K.<br />
33.10%<br />
Nestlé<br />
5.75%<br />
HSBC<br />
5.76%<br />
Nestlé<br />
3.02%<br />
Shell<br />
2.90%<br />
Sources: iShares, PowerShares, SSgA, Vanguard, Bloomberg <strong>and</strong> NYSE Arcavision. 60-day average spread data as of 3/29/2011; all other data as of 3/25/2011.<br />
ETFR • May 2011 9
Figure 2<br />
ETF Country Weights<br />
EUROZONE<br />
PAN-EUROPEAN<br />
FEZ EZU FEU ADRU IEV VGK<br />
UK 0.00% 0.00% 37.92% 47.34% 34.08% 33.10%<br />
France 37.05% 30.78% 11.66% 7.87% 14.79% 15.40%<br />
Germany 30.55% 28.04% 15.63% 6.96% 12.17% 13.10%<br />
Switzerl<strong>and</strong> 0.00% 0.20% 18.23% 10.80% 12.75% 12.00%<br />
Spain 13.20% 11.20% 6.35% 7.93% 5.12% 5.50%<br />
Sweden 0.00% 0.00% 1.90% 0.00% 4.83% 4.80%<br />
Italy 8.93% 8.52% 3.33% 2.29% 4.14% 4.40%<br />
Netherl<strong>and</strong>s 5.52% 8.97% 2.44% 5.02% 3.94% 4.00%<br />
Belgium 2.02% 3.11% 1.21% 1.60% 1.47% 1.40%<br />
Finl<strong>and</strong> 1.84% 3.80% 1.10% 0.00% 1.57% 1.60%<br />
Irel<strong>and</strong> 0.71% 0.81% 0.00% 0.00% 0.38% 0.40%<br />
Denmark 0.00% 0.00% 0.00% 1.49% 1.29% 1.60%<br />
Israel* 0.00% 0.00% 0.00% 1.68% 0.00% 0.00%<br />
Luxembourg 0.00% 1.59% 0.00% 0.00% 0.79% 0.00%<br />
Austria 0.00% 1.13% 0.00% 0.00% 0.41% 0.50%<br />
Portugal 0.00% 0.86% 0.00% 0.00% 0.47% 0.40%<br />
Greece 0.00% 0.77% 0.00% 0.00% 0.25% 0.40%<br />
Norway 0.00% 0.00% 0.00% 0.00% 1.14% 1.40%<br />
Sources: iShares, PowerShares, SSgA <strong>and</strong> Vanguard. Data as of 3/25/2011. *ADRU’s index is the only one in the group <strong>to</strong> include Israel in its selection universe.<br />
down in the pan-European funds. Switzerl<strong>and</strong><br />
has a much higher concentration in<br />
health care, which manifests itself in the<br />
pan-European <strong>ETFs</strong>, as does its much lower<br />
utilities concentration. (See Figure 3.)<br />
All <strong>to</strong>ld, the biggest differences between<br />
the two baskets of securities occur<br />
in the energy, industrials, health care, consumer<br />
discretionary <strong>and</strong> utilities sec<strong>to</strong>rs.<br />
Any inves<strong>to</strong>r wary of the European<br />
health care sec<strong>to</strong>r may want <strong>to</strong> invest in<br />
eurozone <strong>ETFs</strong> over pan-European. Even<br />
though Denmark, Sweden <strong>and</strong> Norway<br />
make up a smaller percentage of securities<br />
<strong>by</strong> weight than the U.K. <strong>and</strong> Switzerl<strong>and</strong>,<br />
their higher allocation is still<br />
enough <strong>to</strong> pull up the health care <strong>to</strong>tals.<br />
Similarly, the pan-European <strong>ETFs</strong><br />
all have higher weightings in energy.<br />
Given the recent nuclear energy fears,<br />
inves<strong>to</strong>rs may want <strong>to</strong> embrace or avoid<br />
energy s<strong>to</strong>cks, depending on their outlook.<br />
Another consideration: The eurozone<br />
<strong>ETFs</strong> have higher consumer discretionary<br />
weightings, which may be an<br />
interesting play for those who forecast a<br />
global recovery driven <strong>by</strong> consumers.<br />
Fewer Differences<br />
In Performance<br />
Despite fairly different sec<strong>to</strong>r <strong>and</strong> country<br />
weights, the return series of the major eurozone<br />
ETF <strong>and</strong> the major pan-European<br />
ETF are highly correlated. The iShares<br />
MSCI EMU ETF (EZU) <strong>and</strong> Vanguard MSCI<br />
Europe ETF (VGK) have an r 2 of 95 percent<br />
since EZU’s 2005 inception.<br />
Although correlations are generally very<br />
high, they occasionally drop in response <strong>to</strong><br />
country- or currency-specific events. For<br />
example, when the time frame is limited <strong>to</strong><br />
March 2007-July 2008, the r 2 drops from<br />
95 percent <strong>to</strong> 91 percent. During this period,<br />
the British pound began its collapse,<br />
dropping from a high of 1.49 euros per<br />
pound <strong>to</strong> 1.25 euros. Although the pound<br />
had not yet bot<strong>to</strong>med out in July 2008, the<br />
other European countries started suffering<br />
alongside the United Kingdom.<br />
Investing in an international ETF means<br />
you’re also investing in the underlying currencies<br />
that each underlying s<strong>to</strong>ck uses,<br />
<strong>and</strong> this can affect your choice. The British<br />
pound collapse is a prime example of<br />
an event that may only impact one of the<br />
two potential baskets of securities. However,<br />
this example also shows that because<br />
Europe is so intertwined, a crisis in one<br />
country generally spreads <strong>to</strong> the others—<br />
sometimes even before the crisis 12<br />
10 ETFR • May 2011
From Russia With Love from page 1<br />
than entities like the IMF. They decide<br />
a country’s status based on specifically<br />
defined fac<strong>to</strong>rs.<br />
“It’s purely quantitative,” said Dimitris<br />
Melas, executive direc<strong>to</strong>r of Research<br />
at MSCI. “We’re not looking at<br />
subjective fac<strong>to</strong>rs, like whether they<br />
have natural resources or not,” he explains.<br />
“As you would imagine, what<br />
we classify as emerging markets, some<br />
of those markets may have natural resources,<br />
others not. The criteria are<br />
actually very, very objective when it<br />
comes <strong>to</strong> economic development.”<br />
That means looking at macroeconomic<br />
measurements like GDP per capita,<br />
but also at the size, liquidity <strong>and</strong><br />
openness of capital markets. At the end<br />
of the day, index providers must draw<br />
a line in the s<strong>and</strong> <strong>and</strong> decide what’s still<br />
developing <strong>and</strong> what’s developed. That<br />
means two countries with very different<br />
economies—say, Russia <strong>and</strong> Hungary—<br />
end up under the same umbrella.<br />
The quantitative approach takes<br />
much of the guesswork out of developing<br />
indexes, but it also means a host of<br />
countries that fall along different parts<br />
of the development spectrum end up<br />
in the same bucket. For instance, India’s<br />
GDP per capita is just $3,400. The<br />
Czech Republic, also labeled emerging,<br />
is several times higher, at $25,600 (<strong>by</strong><br />
comparison, the U.S. is at $47,400).<br />
And of course, every index provider has<br />
its own set of fac<strong>to</strong>rs in the analysis.<br />
The Country Lineup<br />
So what countries make up the emerging<br />
Europe segment? There are some<br />
surprising answers.<br />
As we’ve seen, Russia makes the cut.<br />
Both S&P <strong>and</strong> MSCI consider Russia part<br />
of Europe, <strong>and</strong> that ends up playing<br />
a huge role in the holdings of the two<br />
broad-based emerging Europe funds.<br />
The other surprise is Turkey, a country<br />
whose status as “European” is often<br />
questioned. The major index providers<br />
diverge in their classification of the<br />
country’s status. S&P lumps it in with Europe,<br />
while MSCI considers it part of the<br />
Middle East. That shakes out in the ETF<br />
world, with roughly 17 percent exposure<br />
<strong>to</strong> the country in GUR, while the MSCIbased<br />
iShares fund has none.<br />
Pol<strong>and</strong>, Hungary <strong>and</strong> the Czech Republic<br />
are the other emerging European<br />
economies large <strong>and</strong> liquid enough <strong>to</strong> be<br />
held <strong>by</strong> <strong>ETFs</strong> in meaningful amounts.<br />
Big Fish In A Little Pond<br />
Russia’s inclusion in the two broadbased<br />
emerging Europe <strong>ETFs</strong> is a double-edged<br />
sword: It provides exposure<br />
<strong>to</strong> one of the world’s largest emerging<br />
economies, but it significantly dilutes<br />
exposure <strong>to</strong> anything else.<br />
Adding Russia <strong>to</strong> a portfolio has another<br />
side effect: It creates huge sec<strong>to</strong>r tilts.<br />
Energy <strong>and</strong> basic materials, big drivers of<br />
the Russian economy, <strong>to</strong>gether make up<br />
over 60 percent of the iShares emerging<br />
Europe exposure. Gazprom, the Russian<br />
energy giant, single-h<strong>and</strong>edly accounts<br />
for approximately 20 percent of both<br />
broad-based <strong>ETFs</strong>—more weight than the<br />
entire nation of Pol<strong>and</strong>.<br />
Greg Savage, a senior portfolio manager<br />
at BlackRock, shrugs off Russia’s<br />
Figure 1<br />
Top 5 Countries: ESR And GUR<br />
ESR<br />
Source: Bloomberg. Data as of April 7, 2011.<br />
dominance. “We view indexing in a<br />
market cap framework,” he said. “So<br />
if you’re going in<strong>to</strong> an Eastern Europe<br />
index, Russia is going <strong>to</strong> have a large<br />
weight there.”<br />
Single-Country <strong>ETFs</strong><br />
For those turned off <strong>by</strong> the heavy Russia<br />
exposure of the broad-based funds, the<br />
alternative is <strong>to</strong> invest in single-country<br />
<strong>ETFs</strong>; in essence, creating your own index<br />
of Eastern European economies. These<br />
products let inves<strong>to</strong>rs balance their country<br />
exposure <strong>to</strong> their liking. The country<br />
options are limited—there are no Czech<br />
or Hungary <strong>ETFs</strong> on the market, let alone<br />
smaller Eastern European economies—<br />
but funds covering Pol<strong>and</strong>, Turkey (<strong>and</strong><br />
of course, Russia) are available.<br />
The second-tier countries, while lacking<br />
the star-power of Russia, have merits<br />
of their own. As Savage puts it: “One of<br />
the differences is that on a GDP per-capita<br />
basis, Eastern Europe has significantly<br />
more wealth than Brazil, China, <strong>and</strong> In-<br />
GUR<br />
Russia 74.07% Russia 59.01%<br />
Pol<strong>and</strong> 17.03% Turkey 16.62%<br />
Hungary 4.41% Pol<strong>and</strong> 12.57%<br />
Czech Republic 4.13% Hungary 4.56%<br />
Ukraine 0.34% Czech Republic 4.11%<br />
Figure 2<br />
Sec<strong>to</strong>r Weights: ESR And GUR<br />
Consumer Discretionary 0.44% 3.32%<br />
Consumer Staples 2.67% 1.74%<br />
Energy 48.13% 39.43%<br />
Financials 21.91% 23.41%<br />
Health Care 0.93% 1.09%<br />
Industrials 0.18% 2.96%<br />
Information Technology 0.16% 0.28%<br />
Materials 13.00% 14.20%<br />
Telecommunication Services 5.37% 9.24%<br />
Utilities 6.82% 3.61%<br />
Not <strong>Class</strong>ified 0.38% 0.72%<br />
Source: Bloomberg. Data as of April 7, 2011.<br />
ESR<br />
GUR<br />
ETFR • May 2011 11
dia. They’re more developed countries<br />
from that st<strong>and</strong>point.” In other words,<br />
the Eastern European economies offer a<br />
more developed tilt, which may be preferable<br />
<strong>to</strong> those worried about the fate of<br />
less established economies.<br />
The other benefit of holding those<br />
countries is getting exposure <strong>to</strong> a diversity<br />
of economic structures, which could help<br />
insulate against a downturn in Russia’s<br />
dominant materials or energy industries.<br />
Eastern European countries tend <strong>to</strong> have a<br />
strong showing in the financial sec<strong>to</strong>r—the<br />
iShares MSCI Pol<strong>and</strong> Investable Market Index<br />
ETF (NYSE Arca: EPOL) has more than<br />
40 percent weight in financials—<strong>and</strong> they<br />
also tend <strong>to</strong> be more leveraged <strong>to</strong> their<br />
trade partners in Western Europe, which<br />
means more revenue from manufacturing.<br />
Old World Made New<br />
For inves<strong>to</strong>rs looking for real diversification,<br />
the current crop of Russia-dominated<br />
emerging Europe <strong>ETFs</strong>, with few singlecountry<br />
alternatives, simply falls short. In<br />
part, that’s just due <strong>to</strong> the nature of the region—a<br />
l<strong>and</strong>scape dotted with small countries<br />
with correspondingly small economies.<br />
Some of the countries simply don’t have<br />
economies large enough <strong>to</strong> take as large<br />
an influx of U.S. inves<strong>to</strong>r dollars as we’ve<br />
seen in other “hot” countries like Brazil <strong>and</strong><br />
Indonesia. But this may be changing.<br />
ETF issuers could venture in<strong>to</strong> slightly<br />
smaller terri<strong>to</strong>ry. Countries such as Ukraine<br />
<strong>and</strong> Romania seem ripe for inclusion (in<br />
fact, Ukraine is already a very small part of<br />
ESR’s current basket), <strong>and</strong> would provide<br />
genuine (although not riskless) diversification<br />
in emerging Europe. Emerging Europe<br />
is also an interesting place for alternative<br />
weighting schemes. Equal-weighting, for<br />
instance, would mitigate Russia’s influence<br />
over a broad-based fund <strong>and</strong> give<br />
those funds a more attractive balance.<br />
The other possible good news is that<br />
there may be a new option on the ETF<br />
horizon: an emerging Europe ex-Russia<br />
ETF. Van Eck has filed paperwork with<br />
the Securities <strong>and</strong> Exchange Commission<br />
<strong>to</strong> launch just such a fund; however, the<br />
fund has been in registration for three<br />
years, with no sign of launching. Should<br />
it launch, the fund could mark a turning<br />
point for emerging Europe <strong>ETFs</strong>, ushering<br />
in a new era of funds offering a more balanced<br />
<strong>and</strong> diversified take on an area that<br />
has no shortage of reasons <strong>to</strong> invest. <br />
Eurozone from page 10<br />
Figure 3<br />
Sec<strong>to</strong>r Weights<br />
Sec<strong>to</strong>r Eurozone Pan-European Eurozone/Pan-European Difference<br />
Financials 24.27% 22.58% 1.69%<br />
Consumer Staples 9.02% 11.56% -2.54%<br />
Energy 8.45% 13.80% -5.35%<br />
Industrials 12.18% 8.22% 3.96%<br />
Materials 8.57% 9.87% -1.30%<br />
Health Care 6.01% 12.86% -6.85%<br />
Consumer Discretionary 9.98% 5.39% 4.59%<br />
Telecommunication Services 7.93% 8.05% -0.12%<br />
Utilities 9.12% 3.89% 5.23%<br />
Information Tech 4.32% 3.64% 0.67%<br />
Sources: iShares, PowerShares, SSgA <strong>and</strong> Vanguard. Data as of 3/25/2011. Eurozone <strong>and</strong> pan-European weights are averaged ETF weights.<br />
has reached its apex. Put more simply, the<br />
difference between the euro, the pound<br />
<strong>and</strong> the Swiss franc is less dramatic than<br />
that between the U.S. dollar or the yen.<br />
Choosing Your View<br />
Even with the similar returns, syncing your<br />
vision of European exposure with the available<br />
options is important. In the short term,<br />
it’s rare that sec<strong>to</strong>r differences will affect<br />
one country—a technology breakdown<br />
won’t affect just Norway, for example. And<br />
while the Nordic countries st<strong>and</strong> just slightly<br />
apart from the eurozone, their impact on<br />
a given fund’s holdings is light, at best.<br />
When looking <strong>to</strong>ward future exposure,<br />
your choice comes down <strong>to</strong> how you feel<br />
about the United Kingdom <strong>and</strong> the continued<br />
strength of the British pound. As long<br />
as Engl<strong>and</strong> st<strong>and</strong>s outside of the eurozone,<br />
your choices will remain divided. But if the<br />
U.K. decides <strong>to</strong> join the EU, inves<strong>to</strong>rs may<br />
once again have a more unified view for<br />
European investments.<br />
12 ETFR • May 2011
What’s really in your ETF index?<br />
Market Vec<strong>to</strong>rs Index Methodology<br />
For Emerging Markets ETF Inves<strong>to</strong>rs.<br />
➤ Liquid.<br />
Each s<strong>to</strong>ck must meet minimum requirements for market capitalization <strong>and</strong> daily trading volume. 1<br />
Improves ability <strong>to</strong> track index.<br />
➤ Inclusive.<br />
Includes publicly traded companies deriving at least 50% of their revenues from a country, even if the<br />
company is listed, domiciled or headquartered elsewhere. Many emerging market companies list in<br />
New York, Hong Kong, London <strong>and</strong> Toron<strong>to</strong>.<br />
➤ Diversified.<br />
S<strong>to</strong>ck weightings are capped at 8%, often resulting in greater diversification <strong>by</strong> holding <strong>and</strong> <strong>by</strong> sec<strong>to</strong>r.<br />
➤ Transparent.<br />
Constituents <strong>and</strong> weights are updated <strong>and</strong> published daily, <strong>and</strong> are accessible for free at vaneck.com.<br />
Market Vec<strong>to</strong>rs Indonesia Index ETF (IDX) 2<br />
Based on the Market Vec<strong>to</strong>rs Indonesia Index (MVIDXTR) 3<br />
➤ Inclusive <strong>and</strong> diversified Indonesia exposure.<br />
➤ Constituents must meet minimum liquidity requirements.<br />
➤ See the latest fund performance <strong>and</strong> get the full<br />
list of index constituents <strong>and</strong> weights, updated<br />
daily, at vaneck.com/idx.<br />
1<br />
To be “liquid,” a s<strong>to</strong>ck must have: a market cap over <strong>US</strong>D $150 million, a three-month average daily trading volume over <strong>US</strong>D $1 million, <strong>and</strong> traded at least<br />
250,000 shares per month over the last six months.<br />
2<br />
The Fund is classified as a “non-diversified” investment company under the 1940 Act.<br />
3<br />
Fac<strong>to</strong>rs identified refer <strong>to</strong> the index.<br />
The Fund is subject <strong>to</strong> elevated risks, including those associated with investing in foreign securities, in particular in Indonesian issuers, which<br />
include, among others, expropriation, confisca<strong>to</strong>ry taxation, political instability, armed conflict <strong>and</strong> social instability. Inves<strong>to</strong>rs should be willing<br />
<strong>to</strong> accept a high degree of volatility <strong>and</strong> the potential of significant loss. The Fund may loan its securities, which may subject it <strong>to</strong> additional<br />
credit <strong>and</strong> counterparty risk. Please refer <strong>to</strong> the prospectus for complete risk information. ➤ Fund shares are not individually redeemable <strong>and</strong><br />
will be issued <strong>and</strong> redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation<br />
units” <strong>and</strong> otherwise can be bought <strong>and</strong> sold only through exchange trading. Creation units are issued <strong>and</strong> redeemed principally in kind. Shares<br />
may trade at a premium or discount <strong>to</strong> their NAV in the secondary market. ➤ The Market Vec<strong>to</strong>rs Indonesia Index (the “Index”) is the exclusive<br />
property of 4asset-management GmbH, which has contracted with Structured Solutions AG <strong>to</strong> maintain <strong>and</strong> calculate the Index. Structured<br />
Solutions AG uses its best efforts <strong>to</strong> ensure that the Index is calculated correctly. Irrespective of its obligations <strong>to</strong>ward 4asset-management<br />
GmbH, Structured Solutions AG has no obligation <strong>to</strong> point out errors in the Index <strong>to</strong> third parties. Market Vec<strong>to</strong>rs Indonesia Index ETF (the “Fund”)<br />
is not sponsored, endorsed, sold or promoted <strong>by</strong> 4asset-management GmbH, <strong>and</strong> 4asset-management GmbH makes no representation<br />
regarding the advisability of investing in the Fund. ➤ Investing involves risk, including possible loss of principal. An inves<strong>to</strong>r should consider<br />
investment objectives, risks, charges <strong>and</strong> expenses of the investment company carefully before investing. To obtain a prospectus or<br />
summary prospectus, which contains this <strong>and</strong> other information, call 888.MKT.VCTR or visit vaneck.com/idx. Please read the prospectus<br />
or summary prospectus carefully before investing.<br />
Van Eck Securities Corporation, Distribu<strong>to</strong>r | 335 Madison Avenue | New York, NY 10017
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Total Market<br />
iShares Russell 3000 Value IWW 0.26 343.3 6.42 15.26 15.76 19.66 0.99 1.26 26,100 15.0 23.67 1.93<br />
Schwab <strong>US</strong> Broad Market SCHB 0.06 699.1 6.37 17.51 17.10 - - - 30,155 16.5 - 1.46<br />
Vanguard Total S<strong>to</strong>ck Market VTI 0.07 19,521.4 6.26 17.56 17.42 28.89 3.79 3.20 26,218 14.7 22.58 1.74<br />
iShares Dow Jones <strong>US</strong> IYY 0.20 657.4 6.26 17.06 16.50 28.25 3.37 3.01 32,659 16.5 22.36 1.57<br />
iShares S&P 1500 ISI 0.20 339.1 6.26 16.77 16.24 26.59 3.06 2.73 34,542 16.5 22.32 1.60<br />
iShares Russell 3000 Growth IWZ 0.25 360.2 6.24 18.95 17.42 36.83 5.38 4.10 30,068 18.2 22.23 1.14<br />
iShares Russell 3000 IWV 0.21 3,455.6 6.14 17.21 16.82 28.29 3.31 2.78 28,125 16.5 22.82 1.56<br />
SPDR Dow Jones Total Market TMW 0.20 194.5 6.00 16.36 17.34 27.89 3.53 3.02 31,002 16.4 22.93 1.51<br />
WisdomTree Total Dividend DTD 0.28 170.9 5.88 17.77 16.32 19.57 1.47 - 39,656 15.6 22.81 2.74<br />
WisdomTree Dividend Ex-Financials DTN 0.38 343.4 5.26 21.58 21.44 25.57 3.71 - 21,565 16.3 24.87 3.38<br />
Fidelity Nasdaq Composite ONEQ 0.30 186.3 4.75 16.83 17.79 45.16 7.78 4.21 15,587 18.5 25.22 0.65<br />
Large Cap<br />
First Trust Large Core AlphaDEX FEX 0.70 231.0 7.54 21.16 20.67 36.83 6.55 - 13,519 15.0 24.46 0.83<br />
Rydex S&P Equal Weight RSP 0.40 3,000.9 7.08 20.35 21.39 44.59 7.36 4.26 13,734 17.1 26.99 1.34<br />
SPDR DJ Industrial Average DIA 0.18 9,287.4 6.78 16.10 13.97 22.72 2.98 4.63 109,594 14.9 19.85 2.41<br />
RevenueShares Large Cap RWL 0.49 221.3 6.34 15.33 16.81 29.86 2.79 - 41,041 14.1 25.06 1.26<br />
iShares Russell 1000 IWB 0.15 7,082.9 6.16 16.42 16.02 28.39 2.91 2.80 37,679 16.4 22.34 1.64<br />
PowerShares FTSE RAFI <strong>US</strong> 1000 PRF 0.39 1,146.0 6.05 16.48 19.69 41.74 6.13 4.47 32,720 14.3 26.97 1.55<br />
Schwab <strong>US</strong> Large-Cap SCHX 0.08 521.5 5.96 16.26 15.92 - - - 41,720 16.3 - 1.54<br />
Vanguard Large-Cap VV 0.12 3,146.4 5.90 16.25 15.93 27.36 2.88 3.05 39,528 14.5 22.08 1.73<br />
iShares S&P 500 IVV 0.09 27,025.4 5.83 15.59 15.11 26.61 2.36 2.54 50,185 16.1 21.82 1.76<br />
Vanguard S&P 500 VOO 0.06 1,123.6 5.76 - - - - - 48,105 15.5 - -<br />
Vanguard Mega Cap 300 MGC 0.13 320.1 5.48 14.41 13.74 25.24 2.04 - 59,973 14.1 21.44 1.82<br />
WisdomTree LargeCap Dividend DLN 0.28 611.1 5.46 16.71 14.98 17.31 0.25 - 62,348 15.2 21.98 2.61<br />
SPDR S&P 500 SPY 0.09 89,878.9 5.43 15.02 15.02 26.31 2.23 2.43 50,197 16.1 21.78 1.77<br />
iShares S&P 100 OEF 0.20 3,035.0 5.18 13.08 12.48 22.12 1.29 2.36 105,913 15.3 20.76 1.86<br />
Rydex Russell Top 50 XLG 0.20 373.7 4.96 10.57 9.32 20.30 0.66 1.90 144,629 15.1 19.75 1.86<br />
iShares Morningstar Large Core JKD 0.20 310.0 4.94 12.23 12.68 21.09 1.88 3.36 65,736 16.4 21.31 1.75<br />
iShares MSCI <strong>US</strong>A ESG Select Social KLD 0.50 160.5 4.91 14.22 13.89 30.38 2.99 2.56 30,679 17.0 21.97 1.44<br />
iShares MSCI KLD 400 Social DSI 0.50 150.2 3.67 9.78 11.42 30.73 2.82 - 34,670 16.6 22.31 1.32<br />
Large-Cap Growth<br />
Rydex S&P 500 Pure Growth RPG 0.35 248.5 7.52 27.48 26.90 49.33 10.98 6.53 14,545 19.3 25.50 0.38<br />
First Trust Lrg Growth Opps AlphaDEX FTC 0.70 131.0 7.09 22.11 23.62 28.83 4.33 - 13,404 21.1 23.16 0.50<br />
iShares Russell 1000 Growth IWF 0.20 13,564.5 5.93 18.05 16.48 36.73 5.09 4.09 40,490 18.0 21.98 1.25<br />
Schwab <strong>US</strong> Large-Cap Growth SCHG 0.13 308.6 5.77 17.48 16.85 - - - 30,998 19.4 - 0.68<br />
PowerShares QQQ QQQ 0.20 24,443.4 5.60 20.14 19.89 54.67 10.14 6.99 51,332 19.5 25.08 0.67<br />
iShares Russell Top 200 Growth IWY 0.20 370.7 5.33 14.95 11.98 - - - 80,272 16.9 - 1.30<br />
S&P 500 Growth SPYG 0.20 199.3 5.13 16.31 16.25 36.95 5.15 4.08 48,129 17.8 22.53 0.87<br />
iShares S&P 500 Growth IVW 0.18 6,180.5 5.02 16.44 14.94 31.13 4.66 3.88 48,122 17.8 20.66 1.38<br />
PowerShares Dyn Large Cap Growth PWB 0.61 194.5 4.99 16.90 13.74 34.61 1.89 1.09 44,041 20.8 22.23 0.64<br />
Vanguard Growth VUG 0.14 5,564.5 4.97 17.22 17.21 36.08 4.89 4.31 35,820 18.5 22.08 1.13<br />
Vanguard Mega Cap 300 Growth MGK 0.13 471.9 4.24 14.45 14.51 35.01 4.16 - 52,713 18.2 21.41 1.22<br />
iShares Morningstar Large Growth JKE 0.25 388.0 4.18 14.04 12.57 43.94 3.46 2.61 60,458 20.0 22.90 0.73<br />
Large-Cap Value<br />
First Trust Lrg Cap Val Opps AlphaDEX FTA 0.70 136.9 7.94 19.70 18.69 40.43 7.95 - 13,820 11.9 27.99 1.18<br />
iShares Morningstar Large Value JKF 0.25 232.2 7.72 16.81 14.57 11.02 -0.90 0.62 78,284 13.0 20.94 2.41<br />
Vanguard Value VTV 0.14 4,955.6 6.95 15.31 14.57 19.88 1.12 1.75 43,619 11.8 22.79 2.30<br />
S&P 500 Value Index SPYV 0.20 175.3 6.92 16.39 15.53 17.03 0.33 1.58 52,634 14.6 21.94 2.25<br />
Vanguard Mega Cap 300 Value MGV 0.13 349.8 6.79 14.33 13.13 15.73 -0.15 - 68,138 11.4 22.51 2.25<br />
iShares S&P 500 Value IVE 0.18 4,567.3 6.72 14.68 14.97 20.90 -0.24 0.90 52,379 14.7 24.16 2.01<br />
PowerShares Dyn Large Cap Value PWV 0.63 404.6 6.35 13.63 13.29 18.60 4.59 5.16 60,980 12.5 19.85 2.19<br />
iShares Russell 1000 Value IWD 0.20 12,017.3 6.33 14.87 15.44 19.23 0.31 1.21 35,038 14.9 23.27 1.93<br />
Schwab <strong>US</strong> Large-Cap Value SCHV 0.13 220.8 6.30 15.08 14.86 - - - 55,592 14.1 - 2.27<br />
iShares Russell Top 200 Value IWX 0.20 228.2 6.25 12.28 10.59 - - - 75,443 14.5 - 1.90<br />
Extended Market<br />
Vanguard Extended Market VXF 0.13 1,444.9 8.57 27.13 27.62 37.90 8.94 4.96 2,142 18.3 27.03 0.92<br />
PowerShrs FTSE RAFI <strong>US</strong> 1500 SmMid PRFZ 0.39 408.3 7.35 25.08 28.30 58.64 13.50 - 1,039 18.1 32.22 0.67<br />
Mid Cap<br />
First Trust Mid Cap Core AlphaDEX FNX 0.70 213.6 10.58 27.00 26.64 46.78 13.06 - 2,824 17.0 27.18 0.41<br />
RevenueShares Mid Cap RWK 0.54 156.9 9.69 23.60 23.21 51.87 11.82 - 3,056 15.8 28.95 0.52<br />
iShares S&P 400 MidCap IJH 0.22 11,180.6 9.09 26.88 26.73 37.81 9.85 5.90 3,616 20.2 25.54 1.00<br />
SPDR S&P MidCap 400 MDY 0.25 11,496.3 9.03 26.33 26.26 37.52 9.67 5.67 3,514 19.8 25.56 0.86<br />
WisdomTree MidCap Earnings EZM 0.38 105.7 8.92 26.01 25.60 50.22 13.39 - 2,753 13.7 27.52 1.19<br />
iShares Morningstar Mid Core JKG 0.25 174.9 8.64 26.47 26.49 38.64 8.11 4.74 6,338 19.9 27.14 1.25<br />
Vanguard Mid-Cap VO 0.14 3,836.6 8.19 25.16 25.68 40.47 7.50 4.44 5,864 16.6 26.22 1.10<br />
iShares Russell Midcap IWR 0.20 6,403.8 7.47 24.15 25.31 40.70 7.05 4.48 7,216 18.4 26.31 1.45<br />
WisdomTree MidCap Dividend DON 0.38 256.6 7.17 20.21 21.65 31.91 7.75 - 3,891 19.0 28.17 2.57<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
14 ETFR • May 2011<br />
Yield
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Mid-Cap Growth<br />
Rydex S&P MidCap 400 Pure Growth RFG 0.35 573.9 10.26 35.69 34.84 60.81 19.11 10.72 3,782 23.9 27.57 0.08<br />
iShares S&P Mid Cap 400 Growth IJK 0.25 3,337.1 9.68 30.91 30.44 41.11 11.35 7.19 4,089 23.3 25.71 0.55<br />
iShares Morningstar Mid Growth JKH 0.30 205.3 9.44 29.82 27.84 42.17 6.86 4.84 6,950 25.6 25.73 0.37<br />
Vanguard Mid-Cap Growth VOT 0.14 1,269.7 8.71 30.61 29.14 43.91 6.88 - 6,416 20.6 26.59 0.48<br />
iShares Russell Mid Cap Growth IWP 0.25 3,441.2 7.78 26.72 26.03 46.47 7.39 4.65 7,516 21.7 26.16 0.82<br />
PowerShares Dyn Mid Cap Growth PWJ 0.63 126.1 6.74 26.06 29.58 23.61 4.23 4.49 6,246 24.1 24.68 0.26<br />
Mid-Cap Value<br />
iShares S&P MidCap 400 Value IJJ 0.28 2,413.8 8.83 22.89 22.58 34.35 8.08 4.46 3,207 17.7 26.06 1.46<br />
Vanguard Mid-Cap Value VOE 0.14 899.5 7.55 19.56 21.77 38.28 7.63 - 5,338 13.9 26.75 1.77<br />
iShares Russell Midcap Value IWS 0.25 3,569.5 7.44 22.03 24.43 33.31 6.53 3.93 6,954 16.1 27.36 1.93<br />
iShares Morningstar Mid Value JKI 0.30 117.2 7.34 17.84 20.46 35.42 7.08 3.28 6,457 12.9 27.83 2.58<br />
Small Cap<br />
iShares Morningstar Small Core JKJ 0.25 204.7 9.53 28.50 27.68 39.78 10.23 4.52 1,885 18.9 29.49 0.94<br />
Vanguard Small-Cap VB 0.14 4,886.5 8.77 26.86 28.12 36.61 10.22 4.86 1,430 17.8 28.56 1.07<br />
Schwab <strong>US</strong> Small-Cap SCHA 0.13 516.4 8.58 27.07 28.62 - - - 1,537 19.0 - 0.96<br />
iShares Russell 2000 IWM 0.28 17,598.4 7.80 25.66 26.90 28.53 8.72 3.35 1,125 18.6 27.32 1.06<br />
iShares S&P SmallCap 600 IJR 0.20 7,564.6 7.62 25.16 26.61 25.88 8.37 3.54 1,138 20.3 27.07 1.01<br />
RevenueShares Small Cap RWJ 0.54 129.2 7.20 21.57 25.96 46.53 12.70 - 1,011 17.6 32.86 0.36<br />
First Trust Small Cap Core AlphaDEX FYX 0.70 112.6 7.15 24.87 27.35 36.82 9.74 - 792 17.4 29.64 0.36<br />
WisdomTree SmallCap Earnings EES 0.38 134.7 6.23 25.35 26.97 48.71 13.35 - 672 13.8 30.81 1.12<br />
WisdomTree SmallCap Dividend DES 0.38 248.2 3.27 18.35 27.05 22.15 6.12 - 855 17.5 30.79 3.27<br />
Small-Cap Growth<br />
Vanguard Small-Cap Growth VBK 0.14 2,316.7 10.59 32.78 30.95 42.79 11.85 6.02 1,479 20.6 28.36 0.43<br />
iShares Morningstar Small Growth JKK 0.30 138.5 9.35 31.20 31.18 32.73 10.07 4.09 1,821 26.6 27.12 0.27<br />
iShares Russell 2000 Growth IWO 0.25 4,383.8 9.15 31.02 29.38 34.61 10.39 4.32 1,263 21.7 27.22 0.56<br />
iShares S&P SmallCap 600 Growth IJT 0.25 2,137.1 8.98 30.15 28.24 28.78 9.29 4.64 1,276 21.4 26.33 0.78<br />
S&P SmallCap 600 Growth SLYG 0.25 190.1 8.89 30.11 30.21 47.12 11.71 5.73 1,280 21.4 29.43 0.37<br />
Small-Cap Value<br />
Vanguard Small-Cap Value VBR 0.14 2,096.5 6.88 21.32 25.12 30.97 8.32 3.43 1,381 15.7 29.07 1.79<br />
iShares Morningstar Small Value JKL 0.30 197.4 6.58 20.48 25.80 40.06 10.45 4.80 1,780 14.1 30.30 1.81<br />
iShares Russell 2000 Value IWN 0.41 4,692.6 6.38 20.27 24.68 20.59 6.95 2.10 995 16.0 28.39 1.64<br />
iShares S&P SmallCap 600 Value IJS 0.25 1,893.5 6.25 20.37 24.70 22.36 6.96 2.44 1,018 19.2 28.48 1.13<br />
S&P SmallCap 600 Value Index SLYV 0.25 142.7 6.10 19.55 24.62 36.93 8.82 4.29 1,019 19.2 29.09 1.67<br />
Micro Cap<br />
First Trust DJ Select Micro Cap FDM 0.60 155.9 7.27 25.83 25.58 20.02 6.45 1.31 444 17.8 28.85 0.35<br />
iShares Russell Microcap IWC 0.71 564.5 6.18 24.93 29.55 23.72 5.53 -1.03 325 16.4 29.13 0.77<br />
PowerShares Zacks Micro Cap PZI 0.74 117.0 3.94 17.15 23.52 12.13 -1.49 -5.52 333 13.5 30.49 0.61<br />
Dividend - <strong>US</strong><br />
Guggenheim Multi-<strong>Asset</strong> Income CVY 0.60 456.2 7.17 19.35 17.83 50.31 5.73 - 12,225 14.2 28.01 4.68<br />
Vanguard Dividend Appreciation VIG 0.23 5,848.5 5.99 16.19 14.76 19.56 3.87 - 42,189 16.2 18.40 1.97<br />
First Trust Value Line Dividend FVD 0.70 245.6 5.84 16.51 16.08 19.16 6.12 7.02 15,519 15.0 19.64 2.57<br />
Vanguard High Dividend Yield VYM 0.18 1,258.5 5.73 15.31 14.25 17.17 1.20 - 51,228 14.2 22.22 2.65<br />
PowerShares Dividend Achievers PFM 0.60 211.4 5.60 16.05 14.81 10.70 0.13 1.38 55,630 15.0 20.64 2.08<br />
iShares Dow Jones Select Dividend DVY 0.40 6,067.7 5.49 17.49 17.79 11.15 0.74 0.25 10,124 14.6 23.13 3.36<br />
First Trust Mstar Dividend Leaders FDL 0.45 170.5 5.40 19.87 16.20 13.38 2.18 0.37 39,533 12.3 25.97 3.55<br />
WisdomTree Equity Income DHS 0.38 178.3 5.08 20.47 17.63 17.03 -0.98 - 36,974 15.2 27.76 3.80<br />
SPDR S&P Dividend SDY 0.35 5,507.8 4.90 13.68 16.42 19.04 5.91 3.57 12,126 16.7 23.31 3.21<br />
PowerShrs HiYld Eqty Div Achievers PEY 0.60 197.4 1.30 13.32 20.92 3.64 -4.72 -5.69 4,694 15.0 31.53 3.95<br />
Real Estate<br />
iShares Cohen & Steers Realty Majors ICF 0.35 2,473.1 7.45 26.19 29.14 25.54 0.03 0.13 9,544 46.4 41.46 2.72<br />
iShares Dow Jones <strong>US</strong> Real Estate IYR 0.47 3,128.3 7.05 23.79 26.60 30.46 1.99 0.38 7,197 23.8 38.08 3.35<br />
SPDR Dow Jones REIT RWR 0.25 1,520.3 6.53 24.13 28.03 28.24 1.59 0.59 6,903 46.1 40.38 2.91<br />
Vanguard REIT VNQ 0.13 8,687.8 6.34 24.24 28.43 30.07 3.00 1.79 5,584 41.8 39.65 3.30<br />
iShares FTSE NAREIT Mortgage REM 0.48 142.7 -0.41 10.77 16.49 11.31 -1.98 - 3,032 7.8 21.01 9.67<br />
Basic Materials<br />
SPDR S&P Metals <strong>and</strong> Mining XME 0.35 1,400.3 8.10 31.69 34.15 88.12 3.16 - 3,569 28.6 45.66 0.55<br />
First Trust Materials AlphaDEX FXZ 0.70 584.8 7.11 24.64 28.28 59.45 9.42 - 6,202 16.3 37.44 1.50<br />
iShares Dow Jones <strong>US</strong> Basic Materials IYM 0.47 1,233.7 5.77 30.39 31.02 64.37 5.11 9.76 15,486 20.9 35.08 1.14<br />
Vanguard Materials VAW 0.24 711.9 5.76 26.12 24.46 51.44 3.38 8.00 12,112 18.2 31.26 2.06<br />
Materials Select SPDR XLB 0.20 2,548.4 4.51 22.28 20.56 48.11 2.66 7.06 21,203 21.3 29.94 3.07<br />
Consumer Cyclicals<br />
PowerShares Dynamic Media PBS 0.63 150.2 9.05 17.35 20.18 61.92 6.43 1.45 7,416 17.5 31.60 0.43<br />
First Trust Consumer Discr AlphaDEX FXD 0.70 537.5 6.67 24.75 32.01 57.11 11.95 - 7,575 18.2 33.44 0.42<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
Yield<br />
ETFR • May 2011 15
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Consumer Cyclicals (continued)<br />
SPDR S&P Retail XRT 0.35 1,006.7 5.19 24.44 37.39 77.29 18.84 - 3,388 17.8 32.21 0.99<br />
SPDR S&P Homebuilders XHB 0.35 794.8 4.90 10.43 17.40 27.60 -3.96 -15.22 3,270 19.8 40.18 1.86<br />
Consumer Discretionary Select SPDR XLY 0.20 2,312.8 4.72 20.80 27.49 40.52 10.18 4.52 26,932 18.0 27.17 1.42<br />
iShares DJ <strong>US</strong> Consumer Services IYC 0.48 204.7 4.59 17.09 23.26 32.63 8.30 3.74 22,820 18.0 23.63 1.00<br />
Vanguard Consumer Discretionary VCR 0.24 385.5 4.42 21.81 30.57 46.42 10.48 4.21 15,083 10.6 28.88 0.95<br />
iShares DJ <strong>US</strong> Home Construction ITB 0.47 478.8 0.70 -1.58 10.43 23.24 -11.91 - 2,554 23.5 43.07 0.61<br />
Retail HOLDRS RTH - 576.7 -0.21 7.31 15.55 26.78 6.54 2.62 44,667 16.7 21.19 -<br />
Consumer Non-cyclicals<br />
iShares DJ <strong>US</strong> Consumer Goods IYK 0.48 278.1 3.12 14.92 18.99 23.32 5.54 6.59 34,591 16.1 18.16 2.14<br />
Vanguard Consumer Staples VDC 0.24 619.9 3.00 11.12 14.63 16.55 5.70 7.85 40,309 16.2 14.84 2.52<br />
Consumer Staples Select SPDR XLP 0.20 3,440.8 2.64 10.24 13.81 14.22 5.25 7.50 51,784 15.9 14.69 2.70<br />
Energy<br />
PowerShares S&P SmCap Energy PSCE 0.29 129.9 25.01 - - - - - 1,715 23.7 - -<br />
SPDR S&P Oil & Gas Expl/Prod XOP 0.35 1,514.8 22.74 54.27 28.58 40.16 7.02 - 4,777 21.9 34.98 0.77<br />
PowerShares Dyn Oil/Gas Services PXJ 0.63 311.5 20.84 58.92 29.18 52.86 0.68 5.90 6,712 20.6 41.32 0.29<br />
iShares DJ <strong>US</strong> Oil Equip/Services IEZ 0.47 691.7 20.41 55.01 31.77 63.64 3.92 - 16,056 24.7 40.52 0.36<br />
Rydex S&P Equal Weight Energy RYE 0.50 109.2 19.93 45.14 26.08 44.75 5.71 - 19,328 20.4 33.18 0.43<br />
PowerShares Dyn Energy Expl/Prod PXE 0.63 113.3 19.90 60.10 39.97 19.88 5.16 9.45 8,345 16.3 32.98 0.44<br />
SPDR S&P Oil & Gas Equip/Svcs XES 0.35 702.7 19.85 49.36 30.12 67.80 4.66 - 4,164 22.9 40.43 0.69<br />
First Trust ISE-Revere Natural Gas FCG 0.60 704.7 18.65 35.16 12.23 50.06 0.42 - 14,036 18.0 38.50 0.21<br />
PowerShares Dynamic Energy PXI 0.65 182.2 17.48 55.06 39.56 42.19 8.83 - 6,480 16.9 32.64 0.49<br />
First Trust Energy AlphaDEX FXN 0.70 185.0 17.29 43.92 27.63 46.57 3.57 - 11,943 19.2 39.05 0.47<br />
Energy Select SPDR XLE 0.20 11,087.9 17.22 41.02 21.81 21.81 4.29 9.59 61,635 17.0 27.32 1.31<br />
Oil Services HOLDRS OIH - 3,894.8 17.14 36.37 20.42 62.71 -0.94 3.35 28,669 20.2 39.41 -<br />
Vanguard Energy VDE 0.24 2,200.0 17.12 40.71 21.07 25.54 4.51 9.63 44,204 15.5 27.99 1.07<br />
iShares Dow Jones <strong>US</strong> Energy IYE 0.48 1,156.8 16.96 38.74 19.00 19.28 3.42 9.53 66,403 16.3 26.20 1.13<br />
iShares DJ <strong>US</strong> Oil & Gas Expl/Prod IEO 0.48 577.3 16.91 37.78 18.65 41.06 3.11 - 17,379 22.1 33.82 0.39<br />
Credit Suisse Cushing 30 MLP MLPN 0.85 126.5 6.73 - - - - - - - - -<br />
JPMorgan Alerian MLP ETN AMJ 0.85 2,563.7 5.70 31.19 34.53 - - - - - - 4.73<br />
UBS E-TRACS MLP Infrastr ETN MLPI 0.85 190.4 5.47 - - - - - - - - -<br />
PowerShares WilderHill Clean Energy PBW 0.70 562.6 3.66 8.13 -5.55 27.61 -18.09 -12.65 1,325 18.0 39.71 -<br />
Alerian MLP AMLP 0.85 939.8 3.32 - - - - - 6,615 21.3 - -<br />
Financials<br />
First Trust Financials AlphaDEX FXO 0.70 166.3 5.27 14.73 19.25 33.55 5.26 - 6,630 11.3 30.97 1.20<br />
iShares Dow Jones <strong>US</strong> Insurance IAK 0.47 102.2 3.51 9.00 20.03 14.01 -6.87 - 11,602 11.2 35.10 1.76<br />
Vanguard Financials VFH 0.24 676.1 3.18 6.00 14.83 14.32 -7.50 -8.23 21,817 13.8 34.38 1.29<br />
iShares Dow Jones <strong>US</strong> Financial IYF 0.48 552.7 3.12 4.81 12.20 16.86 -8.29 -8.93 26,818 14.4 34.28 1.05<br />
Financial Select SPDR XLF 0.20 8,155.4 3.02 3.85 11.91 17.50 -11.00 -10.71 47,215 13.9 37.34 0.99<br />
iShares DJ <strong>US</strong> Broker-Dealers IAI 0.48 185.1 2.98 7.27 4.87 42.07 -5.82 - 5,938 19.3 31.09 1.57<br />
SPDR KBW Insurance KIE 0.35 209.8 2.83 8.76 26.08 27.92 0.31 -1.18 12,343 12.5 39.01 1.60<br />
iShares DJ <strong>US</strong> Financial Services IYG 0.48 249.0 1.92 -0.59 7.71 16.11 -10.82 -11.56 43,177 14.6 36.65 0.45<br />
Regional Bank HOLDRS RKH - 176.7 1.36 0.04 12.62 3.29 -7.97 -8.08 64,130 12.6 38.04 -<br />
SPDR KBW Regional Banking KRE 0.35 667.1 0.97 3.07 20.65 -21.93 -6.51 - 1,322 21.3 33.15 1.36<br />
SPDR KBW Bank KBE 0.35 1,922.5 -0.17 0.65 23.07 -1.82 -10.97 -10.87 26,088 15.3 41.64 0.57<br />
iShares DJ <strong>US</strong> Regional Banks IAT 0.48 142.8 -0.97 0.54 20.25 -10.92 -9.26 - 9,515 17.4 34.04 1.16<br />
Health Care<br />
iShares DJ <strong>US</strong> Healthcare Providers IHF 0.47 250.7 14.93 18.90 11.47 35.44 9.64 - 9,521 12.9 26.76 0.17<br />
PowerShares S&P SmCap Health Care PSCH 0.29 137.6 11.88 - - - - - 1,205 18.7 - -<br />
First Trust Health Care AlphaDEX FXH 0.70 101.2 11.09 20.00 19.01 51.22 16.93 - 8,685 14.6 21.00 0.10<br />
iShares DJ <strong>US</strong> Medical Devices IHI 0.47 456.5 9.08 10.09 11.35 38.49 4.31 - 7,942 20.3 24.73 0.07<br />
iShares Nasdaq Biotechnology IBB 0.48 1,462.4 7.21 10.79 14.84 15.17 10.04 4.18 5,873 19.6 22.36 0.51<br />
Vanguard Health Care VHT 0.24 667.0 6.74 7.75 5.61 21.81 5.98 3.44 24,242 14.5 18.26 1.63<br />
Biotech HOLDRS BBH - 675.1 6.67 2.98 2.15 11.49 7.66 2.26 25,246 12.9 21.27 -<br />
iShares DJ <strong>US</strong> Healthcare IYH 0.48 601.4 6.11 6.00 4.13 20.96 5.04 3.13 31,539 16.5 17.98 1.54<br />
SPDR S&P Biotech XBI 0.35 470.7 5.85 11.38 17.60 0.36 8.18 6.22 2,744 - 25.93 -<br />
Health Care Select SPDR XLV 0.20 2,944.8 5.57 5.13 3.32 19.49 4.07 2.54 42,517 16.2 17.57 1.86<br />
First Trust NYSE Arca Biotechnology FBT 0.60 218.3 5.34 10.87 36.94 45.05 22.29 - 4,820 - 29.48 -<br />
iShares DJ <strong>US</strong> Pharmaceuticals IHE 0.47 162.5 3.96 12.80 12.72 30.06 13.05 - 13,878 16.4 18.70 1.37<br />
Pharmaceutical HOLDRS PPH - 1,140.4 3.41 3.79 1.67 20.47 4.45 2.87 78,404 15.1 16.85 -<br />
SPDR S&P Pharmaceuticals XPH 0.35 210.7 1.80 12.22 22.47 27.60 16.74 - 6,897 17.3 19.66 0.76<br />
PowerShares Dyn Biotech/Genome PBE 0.63 199.2 -0.50 12.21 31.47 21.91 9.25 3.96 3,022 17.1 24.65 -<br />
Industrials<br />
iShares DJ <strong>US</strong> Aerospace/Defense ITA 0.47 147.8 9.37 12.22 16.60 25.32 4.04 - 9,020 15.7 28.68 0.92<br />
iShares Dow Jones <strong>US</strong> Industrial IYJ 0.47 511.7 8.97 24.14 25.49 25.81 3.20 4.08 20,359 19.0 28.78 1.47<br />
PowerShares Aerospace/Defense PPA 0.66 115.0 8.88 10.13 10.59 23.04 2.42 4.21 11,286 13.9 26.12 0.85<br />
Vanguard Industrials VIS 0.24 570.5 8.56 23.88 27.32 22.05 2.42 3.83 18,102 18.4 29.56 1.21<br />
Industrial Select SPDR XLI 0.20 4,114.7 8.47 22.94 27.85 22.00 2.64 4.35 34,714 18.9 28.77 1.69<br />
Yield<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
16 ETFR • May 2011
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Industrials (continued)<br />
PowerShares Water Resources PHO 0.64 1,275.3 7.11 17.35 13.27 18.01 2.44 3.01 2,388 19.2 29.76 0.50<br />
iShares DJ Transportation Avg IYT 0.47 632.6 4.14 22.78 26.74 18.93 5.46 4.40 10,379 23.4 28.26 1.10<br />
Technology<br />
PowerShares S&P SmCap Infotech PSCT 0.29 101.1 9.00 - - - - - 1,017 21.3 - -<br />
First Trust Technology AlphaDEX FXL 0.70 186.5 8.06 31.70 26.64 66.79 12.10 - 7,049 15.7 30.03 0.02<br />
SPDR S&P Semiconduc<strong>to</strong>r XSD 0.35 149.5 7.39 23.06 15.71 98.99 15.43 2.29 3,026 18.6 33.88 0.67<br />
Software HOLDRS SWH - 159.3 7.09 19.01 12.48 44.03 9.94 6.44 40,727 20.5 24.22 -<br />
Rydex S&P Equal Wt Technology RYT 0.50 131.7 6.86 21.56 17.89 69.07 9.87 - 13,388 17.1 28.88 0.34<br />
Semiconduc<strong>to</strong>r HOLDRS SMH - 1,289.3 6.69 26.14 18.52 61.55 8.24 0.30 22,046 14.0 29.60 -<br />
iShares PHLX SOX Semiconduc<strong>to</strong>r SOXX 0.48 254.1 6.25 20.99 14.32 74.92 7.15 -1.20 13,252 13.3 33.14 1.05<br />
iShares S&P NA Multimedia Netwk IGN 0.48 313.2 6.21 24.15 24.30 60.57 9.57 -0.38 8,443 21.2 34.48 0.08<br />
iShares S&P North Amer Software IGV 0.48 545.1 6.13 27.68 24.64 47.53 11.42 8.35 12,230 26.1 25.20 -<br />
PowerShares Dynamic Networking PXQ 0.63 182.5 6.10 36.97 46.46 63.13 24.49 9.44 3,898 29.4 29.52 0.38<br />
First Trust Dow Jones Internet FDN 0.60 693.6 5.94 36.38 36.72 79.07 17.91 - 9,292 26.9 28.29 0.11<br />
Internet HOLDRS HHH - 409.7 5.35 24.74 24.35 82.50 11.87 5.81 38,283 30.5 29.98 -<br />
First Trust NASDAQ-100-Technology QTEC 0.60 587.2 5.10 24.11 21.71 79.71 14.03 - 20,119 18.3 29.68 0.37<br />
Vanguard Information Technology VGT 0.24 1,830.4 4.41 15.00 12.78 61.89 8.84 5.29 41,321 17.2 25.65 0.56<br />
iShares S&P North Amer Technology IGM 0.48 453.4 4.28 14.11 11.98 62.42 8.02 5.32 43,551 16.9 25.86 0.49<br />
Technology Select SPDR XLK 0.20 6,971.8 3.80 14.43 11.41 51.25 6.79 4.58 74,816 16.1 23.54 1.28<br />
iShares Dow Jones <strong>US</strong> Technology IYW 0.47 1,565.6 3.46 14.50 12.42 63.79 8.78 5.38 57,444 16.4 25.52 0.42<br />
SPDR Morgan Stanley Technology MTK 0.50 226.8 2.51 13.80 15.31 70.44 9.16 4.75 38,494 17.7 28.06 0.45<br />
Telecom<br />
Telecom HOLDRS TTH - 183.7 4.81 27.34 16.38 7.05 1.13 2.70 83,297 10.2 19.10 -<br />
Vanguard Telecom Services VOX 0.24 356.3 4.48 25.53 19.51 29.45 6.51 4.44 20,066 13.7 21.53 2.78<br />
iShares DJ Telecommunications IYZ 0.48 636.8 2.63 22.98 20.72 26.22 4.37 2.05 13,699 15.3 24.02 3.01<br />
Utilities<br />
Vanguard Utilities VPU 0.24 687.4 3.89 14.18 7.05 11.27 -0.32 4.94 9,504 12.3 16.72 3.75<br />
iShares Dow Jones <strong>US</strong> Utilities IDU 0.48 504.0 3.89 14.09 7.21 12.31 -1.15 4.33 10,566 14.0 17.02 3.71<br />
Utilities Select SPDR XLU 0.20 3,934.3 2.65 12.10 5.35 11.69 -1.66 4.42 14,026 13.4 16.94 4.10<br />
Utilities HOLDRS UTH - 264.1 2.38 10.46 4.23 6.76 -3.66 0.68 19,752 12.4 16.87 -<br />
Global Equity<br />
Guggenheim Solar TAN 0.65 227.2 20.55 3.21 -28.50 16.88 - - 2,126 16.0 - 0.33<br />
iShares S&P Global Energy IXC 0.48 1,514.2 13.72 28.32 11.79 24.71 3.15 7.68 81,175 15.6 26.90 1.62<br />
Market Vec<strong>to</strong>rs Glb Alt Energy GEX 0.62 159.0 13.34 -0.24 -19.20 7.12 -21.67 - 3,682 15.1 42.50 0.84<br />
iShares S&P Global Timber/Forestry WOOD 0.48 279.5 13.06 26.06 16.19 37.71 - - 5,166 14.3 - 2.20<br />
PowerShares Global Clean Energy PBD 0.75 211.2 12.61 6.22 -16.09 31.84 -14.85 - 2,043 17.6 40.52 0.12<br />
Guggenheim Timber CUT 0.70 213.8 12.60 28.30 18.19 50.20 5.67 - 3,873 13.8 39.29 2.57<br />
PowerShares Cleantech PZD 0.67 159.1 11.64 20.69 7.61 35.58 -1.33 - 3,831 20.8 34.94 0.02<br />
Market Vec<strong>to</strong>rs Rare Earth Metals REMX 0.57 463.2 9.58 - - - - - 1,261 - - -<br />
Market Vec<strong>to</strong>rs Hard <strong>Asset</strong>s Producers HAP 0.65 257.8 8.99 26.13 16.52 42.51 - - 32,640 16.1 - 0.74<br />
PowerShares <strong>Listed</strong> Private Equity PSP 0.60 430.7 7.81 23.53 25.90 30.22 -11.10 - 2,232 11.0 42.29 4.72<br />
Jefferies TR/J CRB Glb Commodity Eq CRBQ 0.65 153.6 7.56 26.01 16.96 - - - 43,871 17.1 - 0.92<br />
Market Vec<strong>to</strong>rs Coal KOL 0.59 833.6 7.37 35.07 31.34 144.65 10.65 - 8,474 22.3 54.05 0.39<br />
iShares S&P Global Industrials EXI 0.48 239.1 7.31 21.27 23.28 25.93 1.11 - 28,158 18.3 28.94 1.38<br />
SPDR Global Natural Resources GNR 0.40 125.1 6.09 - - - - - 49,388 14.8 - -<br />
iShares S&P Glb Telecommunications IXP 0.48 428.2 5.97 21.80 11.63 11.28 1.68 7.40 70,707 12.3 20.53 4.01<br />
iShares S&P Global Infrastructure IGF 0.48 518.1 5.33 12.25 6.97 18.14 -3.14 - 13,136 14.3 25.70 3.53<br />
SPDR DJ Global Titans DGT 0.50 155.2 5.02 9.78 4.99 23.04 -2.18 0.68 158,071 13.4 21.67 2.15<br />
iShares S&P Global 100 IOO 0.40 1,110.0 4.95 10.14 5.91 24.02 -0.73 2.33 106,678 13.5 23.72 2.10<br />
Market Vec<strong>to</strong>rs Agribusiness MOO 0.56 3,735.3 4.67 25.04 23.04 58.74 2.37 - 16,408 19.0 34.41 0.59<br />
iShares S&P Global Financials IXG 0.48 296.3 4.60 4.55 3.90 31.74 -9.20 -7.00 44,790 12.2 38.15 2.02<br />
iShares S&P Global Healthcare IXJ 0.48 479.6 4.52 5.52 1.87 17.54 3.25 1.90 48,020 15.9 18.69 2.10<br />
Vanguard Total World S<strong>to</strong>ck VT 0.25 936.2 4.31 14.15 13.07 32.66 - - 33,603 14.2 - 1.85<br />
Global X Silver Miners SIL 0.65 586.2 3.98 - - - - - 3,755 42.1 - -<br />
SPDR DJ Global Real Estate RWO 0.50 247.1 3.59 22.62 24.01 32.04 - - 6,535 15.4 - 6.90<br />
iShares MSCI ACWI ACWI 0.35 1,900.3 3.31 13.29 12.82 32.31 0.66 - 37,850 14.9 25.86 1.67<br />
PowerShares Global Agriculture PAGG 0.75 129.6 3.03 21.80 20.96 49.22 - - 15,809 19.2 - 0.92<br />
iShares S&P Glb Consumer Discr RXI 0.48 136.4 2.44 18.05 23.29 37.45 4.77 - 25,915 17.3 26.90 1.04<br />
Market Vec<strong>to</strong>rs Steel SLX 0.55 271.5 2.40 10.27 19.65 112.78 -2.64 - 17,090 13.7 48.61 1.38<br />
Market Vec<strong>to</strong>rs Gaming BJK 0.65 128.6 2.30 27.76 37.88 36.20 -4.45 - 6,046 21.4 36.37 2.53<br />
PowerShares Global Water PIO 0.75 363.3 2.10 14.52 11.24 39.02 -1.66 - 2,606 16.4 31.32 0.85<br />
Guggenheim S&P Global Water CGW 0.65 240.0 2.02 17.29 15.02 31.54 0.38 - 4,512 17.1 26.17 1.97<br />
iShares S&P Global Technology IXN 0.48 609.4 1.90 8.96 10.44 52.44 4.26 2.70 59,138 16.2 26.45 0.66<br />
iShares S&P Global Materials MXI 0.48 832.9 1.84 19.50 19.92 60.38 1.01 - 29,432 16.5 34.44 1.62<br />
iShares S&P Global Consumer Staples KXI 0.48 313.0 1.60 10.58 13.16 21.72 3.93 - 52,560 15.8 16.96 2.29<br />
iShares S&P Global Utilities JXI 0.48 254.1 1.50 4.70 -1.79 6.22 -6.49 - 20,457 11.4 19.64 4.17<br />
First Trust ISE Global Copper CU 0.70 437.3 -0.27 41.60 - - - - 9,352 17.2 - 0.81<br />
Market Vec<strong>to</strong>rs Junior Gold Miners GDXJ 0.59 2,246.2 -1.68 63.86 66.53 - - - 1,164 - - 7.49<br />
Yield<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
ETFR • May 2011 17
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Global Equity (continued)<br />
Market Vec<strong>to</strong>rs Gold Miners GDX 0.53 6,665.9 -2.23 36.22 33.90 36.72 8.33 - 14,313 22.9 47.85 0.67<br />
Global X Copper Miners COPX 0.65 101.5 -2.50 - - - - - 6,824 13.8 - -<br />
Global X Lithium LIT 0.75 184.7 -5.34 - - - - - 1,708 21.3 - -<br />
Market Vec<strong>to</strong>rs Uranium/Nuclear NLR 0.62 197.7 -9.23 6.35 16.59 17.33 -6.43 - 4,647 9.2 35.02 4.60<br />
Global X Uranium URA 0.69 232.4 -27.45 - - - - - 1,741 - - -<br />
Global Equity - Ex <strong>US</strong><br />
SPDR S&P World ex-<strong>US</strong> GWL 0.34 144.0 4.01 14.22 11.29 28.63 -1.33 - 23,353 14.1 27.30 2.19<br />
SPDR MSCI ACWI ex-<strong>US</strong> CWI 0.34 468.1 3.54 13.73 11.60 37.14 0.10 - 32,051 14.3 28.71 2.24<br />
Vanguard FTSE All-World ex-<strong>US</strong> VEU 0.22 7,375.0 3.33 13.36 11.79 37.61 -0.79 - 26,800 14.3 28.90 2.07<br />
iShares MSCI ACWI ex <strong>US</strong> ACWX 0.35 923.3 3.20 11.85 10.44 36.28 -1.58 - 30,141 14.8 29.26 2.22<br />
Vanguard FTSE All-Wrld ex-<strong>US</strong> SmCap VSS 0.33 968.5 2.32 22.84 25.63 - - - 1,462 15.5 - 2.14<br />
iShares S&P Asia 50 AIA 0.52 239.2 1.90 20.69 19.56 60.79 5.38 - 52,107 13.1 29.99 1.54<br />
SPDR DJ International Real Estate RWX 0.59 1,745.4 0.74 21.52 21.83 36.34 -3.99 - 6,138 9.4 30.92 8.79<br />
Vanguard Global ex-<strong>US</strong> Real Estate VNQI 0.35 130.7 -0.02 - - - - - 5,445 11.6 - -<br />
iShares MSCI All Country Asia ex-Jpn AAXJ 0.69 2,010.4 -1.13 12.86 16.22 68.40 - - 20,370 13.2 - 1.53<br />
Global Equity - Developed<br />
iShares MSCI Spain EWP 0.54 290.6 15.46 6.88 -18.61 32.89 -6.46 4.79 35,535 - 37.61 5.10<br />
Guggenheim Canadian Energy Inc ENY 0.70 260.7 13.71 31.34 22.60 60.41 1.27 - 6,563 20.7 40.43 2.27<br />
iShares MSCI Italy EWI 0.54 155.3 13.43 4.10 -14.20 21.97 -11.05 -4.49 25,122 11.2 36.39 1.71<br />
iShares S&P NA Natural Resources IGE 0.48 2,501.0 12.53 38.23 23.34 37.10 4.57 9.16 37,152 18.9 30.42 1.36<br />
SPDR Euro STOXX 50 FEZ 0.29 170.3 10.73 8.79 -7.75 25.23 -6.74 1.03 61,660 13.0 34.13 3.14<br />
iShares MSCI France EWQ 0.54 353.9 10.14 10.91 -2.38 27.12 -4.58 1.23 38,636 15.0 33.03 2.47<br />
iShares MSCI EMU EZU 0.54 874.9 9.84 11.11 -3.00 26.41 -7.16 0.83 34,804 13.2 34.10 2.39<br />
iShares MSCI Netherl<strong>and</strong>s EWN 0.53 192.7 9.29 15.04 4.95 40.67 -3.61 3.39 20,328 15.1 33.41 1.40<br />
iShares MSCI Canada EWC 0.53 6,470.6 8.42 22.54 19.80 53.07 5.35 8.95 24,814 19.7 31.87 1.49<br />
iShares MSCI Germany EWG 0.53 2,869.1 8.40 20.46 8.31 20.31 -3.50 4.90 41,382 12.8 33.85 1.10<br />
iShares MSCI Kokusai TOK 0.25 659.8 8.08 18.12 11.45 31.45 1.21 - 42,341 15.0 24.48 1.96<br />
WisdomTree Intl Div ex-Financials DOO 0.58 149.9 7.16 15.48 5.70 33.13 -3.30 - 27,177 11.9 30.78 4.01<br />
iShares S&P Europe 350 IEV 0.60 1,343.1 6.47 12.23 3.74 28.90 -4.25 1.70 45,612 13.2 29.53 2.35<br />
Vanguard European VGK 0.14 3,157.2 5.83 13.04 6.05 31.33 -4.02 2.12 39,809 12.6 29.82 4.45<br />
WisdomTree DEFA DWM 0.48 458.0 5.36 11.34 5.19 27.12 -3.53 - 30,859 12.7 27.57 3.21<br />
WisdomTree Intl LargeCap Dividend DOL 0.48 164.5 5.29 8.96 1.87 24.99 -3.84 - 59,800 12.4 27.78 3.33<br />
iShares MSCI South Korea EWY 0.61 4,830.2 5.16 29.84 29.58 71.72 6.13 7.68 16,580 14.9 42.29 0.69<br />
iShares MSCI Sweden EWD 0.53 631.1 5.00 32.27 36.11 55.00 6.38 8.04 18,879 11.5 35.96 1.68<br />
iShares MSCI Austria EWO 0.54 223.8 4.79 20.19 15.81 57.66 -8.22 -2.78 5,894 16.0 44.65 1.07<br />
iShares MSCI Australia EWA 0.53 3,219.4 4.64 14.81 15.35 67.90 5.50 10.56 33,204 15.6 34.71 3.13<br />
PowerShrs F/R Dev Mkts ex-<strong>US</strong> SmMid PXF 0.75 250.0 4.49 12.28 6.81 36.02 -0.97 - 30,691 13.6 31.52 2.34<br />
iShares MSCI EAFE Value EFV 0.40 1,458.3 4.41 8.54 4.59 28.28 -3.55 0.26 36,065 11.8 29.45 3.11<br />
WisdomTree Intl MidCap Dividend DIM 0.58 156.0 4.37 14.86 11.31 33.99 -0.76 - 5,777 13.2 28.96 2.99<br />
Schwab International Equity SCHF 0.13 601.5 4.04 12.12 9.31 - - - 29,593 14.0 - 1.66<br />
Schwab Intl Small-Cap Equity SCHC 0.35 147.3 3.84 23.21 - - - - 1,752 13.3 - 2.21<br />
IQ Canada Small Cap CNDA 0.69 118.9 3.38 40.33 - - - - 1,945 22.7 - 1.34<br />
Vanguard MSCI EAFE VEA 0.15 6,102.7 3.24 10.45 8.33 27.52 -2.79 - 31,214 13.8 27.83 2.42<br />
iShares MSCI EAFE EFA 0.35 39,097.9 3.19 10.31 8.25 26.88 -3.01 1.15 32,535 14.4 27.68 2.33<br />
iShares MSCI United Kingdom EWU 0.53 1,338.2 3.11 13.22 10.28 36.12 -2.56 1.19 54,664 14.6 27.12 2.38<br />
iShares MSCI Pacic ex-Japan EPP 0.50 4,029.9 2.83 16.62 17.77 63.22 5.62 10.68 26,065 14.7 32.36 3.22<br />
WisdomTree Intl SmCap Dividend DLS 0.58 475.7 2.72 16.10 19.43 37.09 -0.70 - 1,123 13.5 29.08 2.64<br />
iShares MSCI EAFE Small Cap SCZ 0.40 1,511.6 2.68 19.46 21.51 42.78 0.26 - 1,504 14.5 29.80 2.78<br />
SPDR S&P International Small Cap GWX 0.59 928.9 2.43 21.25 24.96 38.30 1.61 - 1,151 14.4 29.04 2.31<br />
iShares MSCI EAFE Growth EFG 0.40 1,416.8 1.91 12.17 13.11 24.15 -2.74 1.93 29,363 17.9 26.36 1.75<br />
WisdomTree Intl Real Estate DRW 0.58 122.7 1.90 19.10 17.68 43.07 -4.79 - 5,879 9.8 32.66 9.28<br />
iShares FTSE E/N Dev Real Estate ex-<strong>US</strong> IFGL 0.48 399.3 1.72 15.84 14.57 42.86 -4.63 - 7,037 9.8 30.99 6.19<br />
PowerShares DWA Dev Mkts Tech Ldrs PIZ 0.80 133.7 0.90 17.93 21.07 37.76 -1.33 - 10,905 16.5 30.64 0.43<br />
iShares MSCI Switzerl<strong>and</strong> EWL 0.53 496.3 0.84 11.24 14.48 22.05 0.98 5.34 57,307 13.7 24.24 1.28<br />
iShares S&P Dev Ex-<strong>US</strong> Property WPS 0.48 146.5 0.37 16.82 18.13 37.27 -3.84 - 6,125 10.1 32.19 5.42<br />
iShares MSCI Hong Kong EWH 0.53 1,845.5 0.05 19.42 24.16 54.94 5.33 10.04 19,104 12.5 28.28 2.37<br />
SPDR Russell/Nomura SmCap Japan JSC 0.55 113.7 -1.05 7.57 17.98 3.91 1.52 - 943 16.5 21.75 1.64<br />
iShares MSCI Singapore EWS 0.53 1,877.2 -1.30 22.78 24.51 67.83 6.23 13.20 13,638 12.5 33.75 3.10<br />
Vanguard Pacic VPL 0.14 1,571.6 -2.12 6.30 15.50 20.35 -0.50 -0.29 19,965 16.8 24.85 4.02<br />
iShares MSCI Israel Capped EIS 0.61 127.4 -2.40 4.10 15.39 81.19 9.10 - 6,431 15.1 26.52 3.23<br />
WisdomTree Japan SmCap Dividend DFJ 0.58 235.7 -2.53 5.38 17.40 0.94 0.56 - 816 15.4 20.58 1.74<br />
WisdomTree Japan Hedged Equity DXJ 0.48 495.0 -3.41 -11.66 -1.77 1.19 -7.34 - 12,044 13.2 21.73 1.21<br />
iShares MSCI Japan EWJ 0.54 7,402.4 -5.45 0.21 13.61 3.14 -4.57 -5.35 17,036 16.2 22.88 1.36<br />
iShares S&P/TOPIX 150 ITF 0.50 108.4 -5.66 -0.19 14.05 3.36 -4.79 -5.23 22,202 13.9 23.26 1.58<br />
Global Equity - Emerging<br />
SPDR S&P Emerging Europe GUR 0.59 280.7 10.96 22.05 15.70 78.98 -2.08 - 18,336 13.0 41.32 0.86<br />
SPDR S&P Russia RBL 0.59 145.6 10.46 30.11 - - - - 26,963 - - 0.49<br />
Market Vec<strong>to</strong>rs Russia RSX 0.62 3,938.5 9.81 21.79 22.14 139.25 -2.49 - 37,688 12.7 50.45 0.44<br />
SPDR S&P BRIC 40 BIK 0.50 557.5 7.55 18.54 11.37 78.35 3.97 - 89,718 12.7 34.00 1.45<br />
Yield<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
18 ETFR • May 2011
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Global Equity - Emerging (continued)<br />
iShares MSCI Pol<strong>and</strong> EPOL 0.61 121.3 6.58 - - - - - 5,548 13.8 - -<br />
First Trust ISE Chindia FNI 0.60 168.3 6.00 20.84 18.17 82.55 10.15 - 16,153 21.6 37.49 0.65<br />
SPDR S&P China GXC 0.59 717.4 5.39 13.09 7.58 60.45 6.69 - 34,036 13.7 33.23 1.20<br />
iShares S&P Emrg Mkts Infrastructure EMIF 0.75 136.0 4.83 18.92 18.66 - - - 7,907 16.5 - 2.52<br />
PowerShares Golden Dragon China PGJ 0.70 436.5 4.47 13.09 11.31 63.14 4.54 11.86 9,494 15.3 34.16 0.64<br />
iShares FTSE/Xinhua China 25 FXI 0.72 7,958.1 4.22 8.29 3.51 47.28 1.54 14.31 84,779 11.6 33.05 1.41<br />
iShares MSCI Thail<strong>and</strong> THD 0.62 589.4 3.41 43.73 56.76 81.30 13.05 - 6,477 - 36.75 2.37<br />
Market Vec<strong>to</strong>rs Indonesia IDX 0.60 451.5 2.87 29.85 41.77 - - - 7,831 16.6 - 0.92<br />
iShares MSCI Malaysia EWM 0.53 948.7 2.85 29.96 38.97 49.34 11.11 18.07 8,714 19.4 21.99 2.34<br />
Guggenheim BRIC EEB 0.60 752.2 2.77 13.13 10.70 86.11 3.55 - 46,650 13.3 34.90 1.82<br />
iShares MSCI Indonesia EIDO 0.61 208.3 2.58 - - - - - 9,411 18.3 - -<br />
iShares MSCI BRIC BKF 0.69 1,226.2 2.40 10.55 9.21 85.39 2.12 - 33,625 13.4 36.74 1.70<br />
iShares MSCI Emrg Mkts EEM 0.69 38,230.2 2.16 17.29 16.54 68.82 4.73 9.89 18,667 14.5 32.76 1.33<br />
First Trust BICK BICK 0.64 196.3 2.13 - - - - - 20,244 16.3 - -<br />
PowerShares FTSE RAFI Emrg Mkts PXH 0.85 554.0 1.98 15.72 13.26 67.02 5.77 - 36,857 12.5 33.09 1.00<br />
Vanguard MSCI Emrg Mkts VWO 0.22 47,079.8 1.67 18.13 19.45 76.29 4.07 10.30 20,255 14.8 32.41 1.67<br />
iShares MSCI Mexico EWW 0.53 1,617.5 1.50 18.92 27.95 53.82 3.72 12.08 20,157 17.8 34.33 0.86<br />
SPDR S&P Emrg Mkts GMM 0.59 225.5 1.25 17.57 18.78 72.29 4.92 - 18,639 14.9 32.72 1.43<br />
PowerShares BLDRS Emrg Mkts 50 ADR ADRE 0.30 623.5 0.81 12.21 10.98 65.54 2.07 10.64 51,980 13.6 31.39 1.64<br />
Schwab Emerging Markets Equity SCHE 0.25 403.4 0.79 17.24 - - - - 22,558 15.1 - 0.80<br />
PowerShares Emrg Mkts Infrastructure PXR 0.75 201.7 0.55 21.48 26.20 86.98 - - 7,027 14.0 - 0.83<br />
SPDR S&P Emerging Asia Pacic GMF 0.59 731.4 0.51 18.43 19.50 70.33 5.91 - 15,946 15.3 33.74 1.31<br />
PowerShrs DWA Emrg Mkts Tech Ldrs PIE 0.90 287.0 0.41 20.22 25.11 57.65 -5.32 - 4,609 16.9 37.04 0.34<br />
iShares MSCI Brazil EWZ 0.61 13,201.8 0.14 9.27 7.69 121.50 4.50 17.91 32,246 12.6 40.22 3.65<br />
iShares S&P Latin America 40 ILF 0.50 2,672.5 -0.13 14.23 15.53 91.00 4.66 16.38 38,599 14.9 34.98 2.18<br />
SPDR S&P Emerging Latin America GML 0.59 230.9 -1.21 13.10 15.39 103.84 5.16 - 27,913 14.3 37.55 2.55<br />
WisdomTree Emrg Mkts SmCap Div DGS 0.63 927.5 -1.67 23.27 30.19 83.15 10.47 - 1,565 12.5 32.62 2.62<br />
Market Vec<strong>to</strong>rs Brazil Small-Cap BRF 0.65 942.0 -1.68 31.94 24.12 - - - 1,792 17.3 - 1.34<br />
EGS DJ Emrg Mkts Consumer Titans ECON 0.85 194.7 -2.01 - - - - - 16,685 22.3 - -<br />
iShares MSCI South Africa EZA 0.61 641.5 -2.34 23.83 36.91 51.23 13.03 8.18 13,838 15.0 36.02 2.49<br />
Guggenheim China Small Cap HAO 0.75 374.1 -2.89 7.13 15.85 96.55 10.51 - 1,934 12.1 38.61 1.52<br />
iShares MSCI Turkey TUR 0.61 572.4 -3.58 13.93 25.64 102.82 13.39 - 5,628 11.5 45.94 2.00<br />
iShares S&P India Nifty 50 INDY 0.89 203.9 -4.34 12.52 24.45 - - - 21,859 21.8 - 0.41<br />
Global X China Consumer CHIQ 0.65 165.5 -4.50 0.85 10.79 - - - 4,750 18.4 - 1.11<br />
Global X/InterBolsa FTSE Colombia 20 GXG 0.78 135.0 -4.74 27.85 51.44 - - - 5,073 18.1 - 0.65<br />
iShares MSCI Taiwan EWT 0.71 3,387.8 -4.85 20.65 22.70 73.62 1.60 6.50 10,489 19.5 34.87 1.95<br />
Market Vec<strong>to</strong>rs Africa AFK 0.83 112.6 -5.00 7.29 25.27 35.00 - - 6,772 19.3 - 1.16<br />
SPDR S&P Emrg Mkts Small Cap EWX 0.65 641.7 -5.53 12.18 23.51 94.66 - - 1,007 15.4 - 0.51<br />
SPDR S&P Emrg Middle East/Africa GAF 0.59 159.1 -5.56 15.06 30.55 49.96 9.33 - 8,482 15.2 28.77 2.13<br />
PowerShares India PIN 0.78 567.1 -5.66 6.37 16.29 79.68 -0.01 - 20,081 12.6 41.16 0.98<br />
WisdomTree India Earnings EPI 0.88 1,487.1 -6.03 6.93 20.28 95.08 3.42 - 13,865 15.3 42.99 0.58<br />
iPath MSCI India ETN INP 0.89 847.0 -6.35 8.80 21.23 102.47 3.36 - 16,117 7.9 44.87 -<br />
iShares MSCI All Peru Capped EPU 0.62 550.5 -9.24 39.50 57.69 - - - 4,951 17.5 - 2.00<br />
Market Vec<strong>to</strong>rs Vietnam VNM 0.76 283.8 -9.36 -4.40 4.10 - - - 1,822 13.4 - 1.48<br />
Guggenheim Frontier Markets FRN 0.70 182.9 -9.74 17.77 33.88 54.34 - - 7,048 9.7 - 0.56<br />
iShares MSCI Chile ECH 0.61 852.5 -9.75 31.92 46.57 86.02 12.22 - 7,402 26.1 26.39 0.70<br />
Global Equity - Dividend<br />
WisdomTree DEFA Equity Income DTH 0.58 131.5 7.84 10.79 -0.99 33.11 -4.32 - 37,405 11.9 29.99 4.09<br />
iShares DJ Intl Select Dividend IDV 0.50 471.2 7.16 18.36 11.84 60.56 0.10 - 17,109 12.8 33.32 3.74<br />
SPDR S&P International Dividend DWX 0.45 399.1 6.43 14.68 7.89 62.12 -1.66 - 9,617 10.2 35.35 4.37<br />
PowerShares Intl Dividend Achievers PID 0.57 521.2 5.55 16.81 13.47 37.96 -1.02 3.24 26,902 12.2 28.59 2.88<br />
First Trust DJ Global Select Dividend FGD 0.60 112.0 5.47 19.14 12.60 59.96 1.01 - 9,153 11.5 33.53 3.76<br />
WisdomTree Emrg Mkts Equity Income DEM 0.63 1,325.2 2.68 21.05 24.67 58.07 10.28 - 10,071 12.5 28.22 3.22<br />
Fixed Income - Broad Market<br />
Vanguard Intermediate-Term Bond BIV 0.12 1,892.1 0.39 7.17 9.14 3.93 5.79 - - - 7.79 3.99<br />
iShares Barclays Intmdt Gov/Cred Bond GVI 0.20 537.6 0.31 4.39 5.46 1.99 4.30 - - - 5.16 2.85<br />
iShares Barclays Gov/Credit Bond GBF 0.20 107.2 0.24 4.70 5.71 3.25 4.56 - - - 6.02 3.18<br />
Vanguard Total Bond Market BND 0.12 9,308.5 0.24 4.99 6.20 3.67 5.04 - - - 4.97 3.42<br />
SPDR Barclays Aggregate Bond LAG 0.17 222.2 0.20 4.97 6.25 3.57 5.42 - - - 4.13 2.94<br />
Vanguard Short-Term Bond BSV 0.12 6,097.9 0.04 2.94 3.89 1.55 3.51 - - - 3.80 2.18<br />
iShares Barclays Aggregate Bond AGG 0.24 10,951.2 -0.01 4.67 6.37 3.01 4.94 5.70 - - 5.43 3.45<br />
Vanguard Long-Term Bond BLV 0.12 336.3 -0.28 7.70 10.01 0.11 6.16 - - - 13.10 5.00<br />
Fixed Income - <strong>US</strong> Government<br />
iShares Barclays TIPS Bond TIP 0.20 19,810.3 1.94 7.97 6.13 8.95 3.78 6.10 - - 8.75 2.68<br />
SPDR Barclays TIPS IPE 0.18 393.4 1.88 8.00 6.25 10.23 3.67 - - - 8.42 2.49<br />
Schwab <strong>US</strong> TIPS SCHP 0.14 133.5 1.82 - - - - - - - - -<br />
PIMCO 1-5 <strong>Year</strong> <strong>US</strong> TIPS STPZ 0.20 1,084.8 1.76 4.61 3.51 - - - - - - 1.38<br />
PIMCO 15+ <strong>Year</strong> <strong>US</strong> TIPS LTPZ 0.20 251.4 0.56 10.03 8.66 - - - - - - 2.80<br />
iShares Barclays MBS Bond MBB 0.33 2,484.0 0.40 4.26 5.58 4.69 5.38 - - - 3.51 3.43<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
Yield<br />
ETFR • May 2011 19
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Fixed Income - <strong>US</strong> Government (continued)<br />
iShares Barclays Agency Bond AGZ 0.20 383.1 0.15 2.98 3.74 1.50 - - - - - 1.87<br />
SPDR Barclays Intermediate Treasury ITE 0.13 198.7 0.11 3.88 4.93 -1.55 3.36 - - - 3.91 2.02<br />
iShares Barclays Short Treasury Bond SHV 0.15 4,166.2 0.01 0.11 0.12 0.16 0.63 - - - 0.33 0.09<br />
Vanguard Short-Tm Gov Bond VGSH 0.15 111.8 0.01 1.49 2.29 - - - - - - 0.68<br />
SPDR Barclays 1-3 Month T-Bill BIL 0.13 921.8 0.00 -0.02 -0.04 0.27 0.34 - - - 0.40 -<br />
iShares Barclays 3-7 Yr Treasury Bond IEI 0.15 1,349.2 -0.09 4.84 6.31 -1.69 3.79 - - - 4.74 2.08<br />
iShares Barclays 1-3 Yr Treasury Bond SHY 0.15 7,837.1 -0.12 1.46 2.28 0.36 2.01 3.96 - - 1.54 0.99<br />
iShares Barclays 10-20 Yr Treas Bond TLH 0.15 190.2 -0.23 7.52 9.69 -9.08 4.83 - - - 12.37 3.60<br />
PIMCO 1-3 <strong>Year</strong> <strong>US</strong> Treasury TUZ 0.09 106.5 -0.32 1.51 2.43 - - - - - - 0.80<br />
iShares Barclays 7-10 Yr Treas Bond IEF 0.15 2,766.5 -0.38 7.21 9.36 -6.56 4.21 6.78 - - 8.53 3.16<br />
PowerShares 1-30 Laddered Treasury PLW 0.25 281.9 -0.93 6.15 8.80 -11.09 3.65 - - - 11.22 3.30<br />
iShares Barclays 20+ Yr Treasury Bond TLT 0.15 2,978.5 -1.44 7.22 9.04 -21.75 2.75 5.62 - - 17.96 4.25<br />
Vanguard Ext Duration Treasury EDV 0.13 114.5 -3.77 8.12 9.90 -35.63 0.69 - - - 29.03 4.60<br />
Fixed Income - Municipal<br />
iShares S&P Calif Muni Bond CMF 0.25 199.4 2.93 -0.95 -2.62 8.19 3.01 - - - 7.85 4.02<br />
SPDR Barclays Muni Bond TFI 0.23 824.5 2.21 0.93 -0.51 9.99 4.17 - - - 6.49 3.58<br />
PowerShares Build America Bond BAB 0.29 672.2 1.94 6.88 9.38 - - - - - - 5.81<br />
Market Vec<strong>to</strong>rs Intermediate Muni ITM 0.24 209.8 1.27 2.07 1.63 10.67 4.36 - - - 6.68 3.50<br />
iShares S&P Short Tm Natl Muni SUB 0.25 409.7 0.98 1.19 0.36 4.24 - - - - - 1.27<br />
iShares S&P Natl AMT-Free Muni MUB 0.25 1,959.4 0.89 -0.16 0.10 7.09 3.53 - - - 6.12 3.75<br />
Market Vec<strong>to</strong>rs High-Yield Muni HYD 0.35 194.5 0.82 -1.13 0.34 - - - - - - 6.29<br />
iShares BarCap Short Term Muni Bond SHM 0.20 1,270.6 0.33 1.32 1.02 4.24 3.10 - - - 2.91 1.55<br />
PowerShares VRDO Tax-Free Weekly PVI 0.25 452.5 0.12 0.41 0.29 1.00 1.33 - - - 0.53 0.41<br />
PowerShares Insured Natl Muni Bond PZA 0.28 476.6 -0.12 -1.71 -0.48 17.58 3.09 - - - 7.86 4.94<br />
Fixed Income - Corporate<br />
PowerShares Financial Preferred PGF 0.65 1,813.0 4.76 12.46 16.00 38.50 3.82 - 32,469 - 39.64 6.92<br />
SPDR Wells Fargo Preferred S<strong>to</strong>ck PSK 0.45 104.9 3.76 11.65 13.98 - - - - - - 5.83<br />
PowerShrs Fundamntl HiYld Corp Bond PHB 0.50 452.9 3.48 10.89 9.07 23.69 1.07 - - - 20.86 7.17<br />
iShares S&P <strong>US</strong> Preferred S<strong>to</strong>ck PFF 0.48 7,082.0 3.36 10.41 13.83 38.70 6.34 - - - 32.98 7.35<br />
PowerShares Preferred PGX 0.50 1,395.6 3.33 10.07 11.56 19.69 -1.56 - - - 29.25 6.65<br />
SPDR Barclays High Yield Bond JNK 0.40 7,252.6 3.29 13.07 14.20 37.65 8.93 - - - 21.66 8.65<br />
iShares iBoxx $ HiYld Corp Bond HYG 0.50 8,475.3 3.16 13.06 11.96 28.86 8.11 - - - 19.31 8.00<br />
SPDR Barclays Convertible Bond CWB 0.40 772.8 3.00 12.72 14.01 - - - - - - 3.99<br />
SPDR Barclays <strong>US</strong> Interm Corp Bond ITR 0.15 153.4 1.01 5.42 7.16 - - - - - - 3.57<br />
iShares Barclays Credit Bond CFT 0.20 790.1 0.97 6.74 8.42 11.19 6.53 - - - 8.80 4.51<br />
Vanguard Intermediate Corp Bond VCIT 0.15 392.5 0.96 8.03 9.98 - - - - - - 3.85<br />
iShares Barclays Intermdt Credit Bond CIU 0.20 3,180.1 0.79 5.53 6.83 12.79 5.82 - - - 7.08 4.10<br />
iShares iBoxx $ Inv Gr Corp Bond LQD 0.15 12,808.7 0.58 7.36 9.33 8.58 6.50 6.06 - - 12.27 4.85<br />
SPDR Barclays Short Tm Corp Bond SCPB 0.12 333.0 0.57 2.95 2.80 - - - - - - 1.89<br />
iShares Barclays 1-3 <strong>Year</strong> Credit Bond CSJ 0.20 7,958.7 0.52 2.29 2.88 7.17 3.88 - - - 4.17 2.36<br />
Vanguard Short-Term Corporate Bond VCSH 0.15 1,374.5 0.21 3.68 5.27 - - - - - - 1.95<br />
Fixed Income - International<br />
SPDR Barclays Short Term Intl Treas BWZ 0.35 206.3 4.11 8.78 1.59 - - - - - - -<br />
SPDR DB Intl Gov In-Protected Bond WIP 0.50 1,141.9 4.07 11.68 6.56 17.14 1.64 - - - 16.18 2.16<br />
iShares S&P/Citigroup 1-3 Yr Intl Treas ISHG 0.35 128.3 3.15 7.26 1.09 - - - - - - 1.02<br />
iShares S&P/Citigroup Intl Treasury IGOV 0.35 208.0 2.58 6.62 1.59 - - - - - - 2.26<br />
SPDR Barclays Intl Treasury Bond BWX 0.50 1,433.7 2.36 7.60 3.82 5.44 2.56 - - - 12.21 0.61<br />
Market Vec<strong>to</strong>rs Em Mkt Lcl Curr Bond EMLC 0.49 288.3 1.75 - - - - - - - - -<br />
WisdomTree Emrg Mkts Local Debt ELD 0.55 729.2 0.80 - - - - - - - - -<br />
PowerShares Emrg Mkts Sov Debt PCY 0.50 918.2 0.55 6.85 10.84 35.70 7.22 - - - 21.96 5.87<br />
iShares JPM <strong>US</strong>D Emrg Mkts Bond EMB 0.60 2,311.4 0.44 7.67 10.86 15.50 7.76 - - - 19.46 5.14<br />
PIMCO Enh Short Maturity Strategy MINT 0.35 1,190.3 0.38 1.71 1.64 - - - - - - 0.79<br />
WisdomTree Asia Local Debt ALD 0.55 172.7 - - - - - - - - - -<br />
Currency<br />
CurrencyShares Euro FXE 0.40 431.1 6.06 4.78 -6.87 2.53 -2.80 4.89 - - 15.10 0.01<br />
WisdomTree Dreyfus Brazilian Real BZF 0.45 171.0 3.92 17.57 12.46 34.01 - - - - - -<br />
CurrencyShares Canadian Dollar FXC 0.40 679.8 3.09 4.66 4.96 15.24 2.21 - - - 13.12 0.04<br />
CurrencyShares British Pound Sterling FXB 0.40 135.4 2.41 5.43 -3.33 10.62 -6.15 - - - 12.18 -<br />
WisdomTree Commodity Currency CCX 0.55 131.3 2.29 - - - - - - - - -<br />
CurrencyShares Australian Dollar FXA 0.40 731.5 2.11 16.94 17.87 29.29 8.16 - - - 19.42 3.31<br />
CurrencyShares Swiss Franc FXF 0.40 525.1 1.53 14.31 10.54 2.21 2.51 - - - 14.87 -<br />
WisdomTree Emerging Currency CEW 0.55 449.8 1.42 6.80 6.40 - - - - - - -<br />
WisdomTree Chinese Yuan CYB 0.45 639.1 -0.04 1.41 1.21 1.20 - - - - - -<br />
CurrencyShares Japanese Yen FXY 0.40 166.8 -2.46 11.98 14.20 -3.16 5.81 - - - 11.67 -<br />
PowerShares DB <strong>US</strong> Dollar Bullish UUP 0.75 865.8 -4.05 -8.45 -1.60 -6.52 -0.69 - - - 11.80 -<br />
Yield<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
20 ETFR • May 2011
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Commodity - Broad Market<br />
iPath S&P GSCI ETN GSP 0.75 127.3 11.92 23.62 8.36 15.25 -13.12 - - - 32.66 -<br />
PowerShares DB Commodity DBC 0.85 6,347.9 10.74 29.72 11.90 16.19 -4.64 6.35 - - 27.09 -<br />
iShares S&P GSCI GSG 0.75 2,032.3 9.53 19.87 7.17 11.22 -13.58 - - - 32.07 -<br />
United States Commodity <strong>US</strong>CI 0.95 422.2 9.43 - - - - - - - - -<br />
ELEMENTS RICI ETN RJI 0.75 914.2 9.42 32.85 17.86 26.45 -4.78 - - - 27.66 -<br />
UBS E-TRACS CMCI ETN UCI 0.65 157.7 6.95 28.70 18.61 40.58 - - - - - -<br />
GreenHaven Continuous Commodity GCC 0.85 809.6 6.92 40.47 25.19 20.07 2.89 - - - 21.38 -<br />
iPath DJ-UBS Commodity ETN DJP 0.75 3,284.9 4.54 28.83 16.23 20.09 -5.78 - - - 24.15 -<br />
Commodity - Agricultural<br />
iPath DJ-UBS Cot<strong>to</strong>n ETN BAL 0.75 278.1 42.72 168.57 96.22 28.59 - - - - - -<br />
iPath DJ-UBS Softs ETN JJS 0.75 244.0 9.55 98.77 58.86 43.31 - - - - - -<br />
iPath DJ-UBS Lives<strong>to</strong>ck ETN COW 0.75 108.5 6.70 9.48 9.20 -15.92 -6.45 - - - 13.47 -<br />
PowerShares DB Agriculture DBA 0.75 3,887.0 5.81 41.33 22.35 0.99 -1.50 - - - 23.23 -<br />
ELEMENTS RICI Agriculture ETN RJA 0.75 738.7 5.69 59.80 35.01 6.29 0.67 - - - 26.57 -<br />
iPath DJ UBS Agriculture ETN JJA 0.75 429.3 4.04 67.53 38.40 13.17 4.31 - - - 28.26 -<br />
iPath DJ UBS Grains ETN JJG 0.75 352.5 2.87 60.54 29.85 -1.86 -3.09 - - - 32.78 -<br />
Commodity - Energy<br />
United States Gasoline UGA 0.60 156.4 19.60 32.98 15.11 87.97 1.26 - - - 43.51 -<br />
PowerShares DB Energy DBE 0.75 239.8 17.00 21.99 2.63 30.36 -6.17 - - - 34.22 -<br />
PowerShares DB Oil DBO 0.75 684.7 14.32 14.72 2.36 42.92 -4.63 - - - 36.24 -<br />
United States 12 Month Oil <strong>US</strong>L 0.60 286.2 12.30 18.42 6.52 35.36 -6.13 - - - 35.15 -<br />
iPath S&P GSCI Crude Oil ETN OIL 0.75 780.7 10.11 5.78 -1.04 11.22 -22.44 - - - 42.68 -<br />
United States Oil <strong>US</strong>O 0.45 2,166.3 9.23 5.73 -0.71 18.67 -19.40 - - - 40.29 -<br />
iPath DJ-UBS Natural Gas ETN GAZ 0.75 115.8 7.45 -8.85 -43.63 -51.15 -48.48 - - - 39.08 -<br />
United States Natural Gas UNG 0.60 2,287.8 -4.03 -16.79 -40.56 -56.50 -50.87 - - - 38.09 -<br />
Commodity - Industrial Metals<br />
iPath DJ-UBS Tin ETN JJT 0.75 194.4 17.58 76.15 58.74 66.19 - - - - - -<br />
PowerShares DB Base Metals DBB 0.75 652.2 -0.04 8.49 8.58 88.92 -0.25 - - - 30.24 -<br />
iPath DJ-UBS Copper ETN JJC 0.75 225.4 -3.72 17.81 29.04 133.55 1.68 - - - 37.00 -<br />
Commodity - Precious Metals<br />
ETFS Physical Silver SIVR 0.30 698.3 22.06 114.96 82.16 - - - - - - -<br />
iShares Silver SLV 0.50 13,556.9 21.84 114.53 82.48 47.67 29.22 - - - 36.57 -<br />
PowerShares DB Silver DBS 0.75 412.5 21.35 113.11 81.16 47.07 28.25 - - - 36.70 -<br />
ETFS Physical Precious Metal Basket GLTR 0.60 228.9 8.44 - - - - - - - - -<br />
PowerShares DB Precious Metals DBP 0.75 338.4 4.88 42.09 37.56 26.58 17.30 - - - 22.98 -<br />
iShares Gold Trust IAU 0.25 5,780.1 0.86 28.59 29.46 23.90 15.64 19.21 - - 20.66 -<br />
ETFS Physical Swiss Gold SGOL 0.39 1,282.3 0.85 28.36 29.23 - - - - - - -<br />
SPDR Gold GLD 0.40 56,017.2 0.82 28.37 29.27 24.03 15.65 19.21 - - 20.70 -<br />
PowerShares DB Gold DGL 0.75 222.6 0.62 27.10 27.89 22.03 14.00 - - - 20.78 -<br />
ETFS Physical Platinum PPLT 0.60 760.0 -0.20 6.98 - - - - - - - -<br />
ETFS Physical Palladium PALL 0.60 785.2 -4.80 58.89 - - - - - - - -<br />
Alpha-Seeking<br />
First Trust Value Line 100 FVL 0.70 112.7 9.76 32.62 28.27 14.19 -1.16 1.32 3,280 15.2 24.42 -<br />
PowerShares DWA Technical Leaders PDP 0.70 392.9 9.06 26.32 26.59 28.03 1.86 - 9,262 20.0 26.23 0.22<br />
PowerShares Dynamic Market PWC 0.60 190.4 6.85 20.16 17.33 18.47 1.90 0.66 11,645 14.3 20.79 1.35<br />
Guggenheim Insider Sentiment NFO 0.60 165.9 5.97 23.36 26.79 48.69 12.00 - 4,187 14.4 29.31 0.58<br />
PowerShares S&P 500 High Quality PIV 0.50 108.4 4.90 19.89 20.50 12.59 -3.06 -3.12 22,440 16.5 21.72 0.56<br />
PowerShares CEF Income Composite PCEF 1.62 203.0 3.33 7.42 - - - - 41,437 15.0 - 8.72<br />
PowerShares DB G10 Currency Harvest DBV 0.75 364.8 2.61 3.26 0.85 21.22 -1.31 - - - 15.00 -<br />
Cambria Global Tactical GTAA 1.29 145.3 2.58 - - - - - 10,797 17.6 - -<br />
PowerShares S&P 500 BuyWrite PBP 0.75 119.1 1.28 5.34 4.89 24.00 -2.28 - 50,690 16.1 17.14 1.20<br />
iShares Diversied Alternatives ALT 0.95 127.4 0.55 2.62 1.62 - - - - - - -<br />
IQ Hedge Multi-Strategy Tracker QAI 1.13 124.3 -0.32 1.97 2.59 - - - 19,995 14.7 - 1.52<br />
iPath S&P 500 VIX Mid-Tm Futures ETN VXZ 0.89 570.8 -16.29 -18.48 -14.43 - - - - - - -<br />
iPath S&P 500 VIX Shrt-Trm Futures ETN VXX 0.89 1,436.7 -21.91 -65.05 -72.40 - - - - - - -<br />
<strong>Asset</strong> Allocation<br />
iShares S&P Growth Allocation AOR 0.32 104.1 3.63 11.82 11.14 18.99 - - 19,063 16.5 - 1.89<br />
Leveraged<br />
Direxion Daily Energy Bull 3x ERX 1.03 376.1 53.60 131.33 48.96 14.71 - - - - - 0.06<br />
ProShares Ultra Silver AGQ 0.95 1,057.0 41.93 289.63 182.44 78.25 - - - - - -<br />
ProShares Ultra Oil/Gas DIG 0.95 468.2 35.24 81.71 33.69 20.59 -10.82 - - - 53.62 0.34<br />
Direxion Daily Small Cap Bull 3x TNA 1.03 755.6 21.70 61.51 69.81 42.94 - - - - - -<br />
ProShares Ultra MidCap 400 MVV 0.95 157.8 17.93 52.21 52.88 68.15 6.15 - - - 51.83 0.01<br />
Direxion Daily Large Cap Bull 3x BGU 1.18 305.8 17.27 41.35 39.81 65.15 - - - - - 0.19<br />
Yield<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
ETFR • May 2011 21
May 2011 U.S.-<strong>Listed</strong> <strong>ETFs</strong> <strong>Sorted</strong> <strong>by</strong> <strong>Asset</strong> <strong>Class</strong> <strong>and</strong> <strong>Year</strong>-<strong>to</strong>-<strong>Date</strong> <strong>Return</strong><br />
Issue No. 126<br />
Fund Name Ticker Exp Ratio <strong>Asset</strong>s YTD 12-Mo 2010 2009 3-Yr 5-Yr Mkt Cap P/E Std Dev<br />
Leveraged (continued)<br />
Direxion Daily Real Estate Bull 3x DRN 1.03 139.9 17.02 49.17 63.51 - - - - - - 0.58<br />
ProShares UltraPro S&P 500 UPRO 0.95 302.5 16.70 38.34 36.37 - - - - - - 0.13<br />
ProShares Ultra Russell 2000 UWM 0.95 273.3 15.34 47.54 50.63 42.89 1.78 - - - 54.77 0.01<br />
ProShares UltraPro QQQ TQQQ 0.95 203.8 15.11 53.02 - - - - - - - -<br />
Direxion Daily Semiconduc<strong>to</strong>r Bull 3X SOXL 1.03 134.7 14.90 35.25 - - - - 12,669 14.8 - 0.01<br />
ProShares Ultra DJ-UBS Crude Oil UCO 0.95 302.6 14.03 9.09 -1.46 -7.38 - - - - - -<br />
ProShares Ultra Dow30 DDM 0.95 347.9 13.72 30.53 25.37 39.71 -3.26 - - - 40.64 0.48<br />
ProShares Ultra Real Estate URE 0.95 534.9 13.51 42.20 48.36 12.10 -27.39 - - - 72.30 0.72<br />
ProShares Ultra S&P 500 SSO 0.92 1,777.5 11.13 27.82 26.86 47.27 -5.89 - - - 44.59 0.63<br />
ProShares Ultra QQQ QLD 0.95 889.8 10.49 37.48 36.90 121.20 8.77 - - - 51.08 -<br />
ProShares Ultra Basic Materials UYM 0.95 398.3 10.37 56.42 57.39 126.82 -10.36 - - - 70.16 0.06<br />
Direxion Daily Financial Bull 3x FAS 1.02 1,928.3 8.75 -5.84 13.02 -41.44 - - - - - -<br />
PowerShares DB Ag Dbl Long ETN DAG 0.75 127.3 6.40 110.26 30.88 5.70 - - - - - -<br />
ProShares Ultra Technology ROM 0.95 140.7 5.90 23.64 19.91 146.38 6.72 - - - 51.52 -<br />
ProShares Ultra Financials UYG 0.95 1,274.4 5.41 3.06 18.04 -5.50 -37.76 - - - 66.66 0.06<br />
Direxion Daily Technology Bull 3x TYH 2.25 262.6 4.18 23.72 21.28 240.15 - - - - - -<br />
ProShares Ultra Gold UGL 0.95 250.7 0.58 56.74 58.28 41.39 - - - - - -<br />
PowerShares DB Gold Double Long ETN DGP 0.75 500.3 0.30 58.89 62.37 46.16 23.70 - - - 41.90 -<br />
Direxion Daily Emrg Mkts Bull 3x EDC 1.01 381.1 0.10 25.99 24.29 206.32 - - - - - 0.49<br />
Yield<br />
Inverse<br />
PowerShares DB <strong>US</strong> Dollar Bearish UDN 0.75 157.8 3.84 6.07 -1.60 5.19 -1.36 - - - 11.34 -<br />
ProShares UltraShort Yen YCS 0.95 368.4 3.83 -24.11 -26.43 -2.52 - - - - - -<br />
Direxion Daily 30-Yr Treasury Bear 3x TMV 0.65 487.3 1.18 -33.76 -36.69 - - - - - - -<br />
ProShares UltraShort 20+ Yr Treasury TBT 0.95 6,022.8 1.08 -23.11 -25.74 32.20 - - - - - -<br />
ProShares Short 20+ Yr Treasury TBF 0.95 960.6 0.16 -11.20 -12.39 - - - - - - -<br />
ProShares UltraShort 7-10 Yr Treasury PST 0.95 478.1 -0.05 -17.92 -21.51 2.43 - - - - - -<br />
ProShares Short MSCI Emrg Mkts EUM 0.95 215.4 -3.36 -21.03 -20.92 -50.67 -25.34 - - - 26.86 -<br />
ProShares Short S&P 500 SH 0.92 1,563.4 -6.09 -16.85 -16.59 -27.02 -10.39 - - - 20.71 -<br />
ProShares Short QQQ PSQ 0.95 271.0 -6.14 -20.77 -20.61 -40.20 -17.21 - - - 23.34 -<br />
ProShares Short Dow30 DOG 0.95 237.9 -7.08 -16.99 -15.29 -23.66 -9.90 - - - 19.37 -<br />
ProShares UltraShort MSCI Emrg Mkts EEV 0.95 126.8 -7.35 -41.42 -41.82 -79.25 -57.94 - - - 49.61 -<br />
ProShares UltraShort Financials SKF 0.95 304.8 -8.33 -25.30 -35.33 -76.48 -50.34 - - - 66.18 -<br />
ProShares Short Russell 2000 RWM 0.95 295.9 -8.48 -26.65 -27.39 -32.86 -20.09 - - - 26.18 -<br />
ProShares UltraShort China 25 FXP 0.95 179.7 -11.87 -32.54 -28.30 -76.27 -61.46 - - - 55.95 -<br />
ProShares UltraShort S&P 500 SDS 0.90 2,202.8 -11.95 -32.49 -32.21 -50.59 -26.42 - - - 39.11 -<br />
ProShares UltraShort Euro EUO 0.95 381.8 -12.11 -14.18 8.61 -12.04 - - - - - -<br />
ProShares UltraShort QQQ QID 0.95 722.6 -12.38 -39.12 -38.90 -66.80 -37.86 - - - 44.34 -<br />
ProShares UltraShort Dow 30 DXD 0.95 321.6 -13.77 -32.39 -29.76 -44.98 -24.45 - - - 36.67 -<br />
ProShares UltraShort Real Estate SRS 0.95 202.1 -14.77 -48.81 -51.63 -85.21 -67.65 - - - 70.63 -<br />
Direxion Daily Financial Bear 3x FAZ 1.15 687.8 -14.88 -40.29 -51.36 -94.56 - - - - - -<br />
ProShares UltraShort Russell 2000 TWM 0.95 445.2 -16.86 -49.33 -50.14 -60.27 -44.17 - - - 50.03 -<br />
ProShares UltraPro Short S&P 500 SPXU 0.95 291.1 -17.88 -46.96 -46.51 - - - - - - -<br />
ProShares UltraShort DJ-UBS Crude Oil SCO 0.95 136.8 -18.78 -32.68 -25.49 -56.89 - - - - - -<br />
Direxion Daily Large Cap Bear 3x BGZ 1.02 182.6 -18.81 -49.11 -48.74 -70.71 - - - - - -<br />
PowerShares DB Cr Oil Dbl Short ETN DTO 0.75 138.7 -19.87 -28.63 -20.26 -54.19 - - - - - -<br />
Direxion Daily Small Cap Bear 3x TZA 1.15 628.9 -25.09 -67.35 -68.34 -79.41 - - - - - -<br />
ProShares UltraShort Silver ZSL 0.95 127.9 -40.61 -85.70 -79.50 -72.65 - - - - - -<br />
READ IT IN<br />
FIRST ETFR<br />
The print version of the April 2011 issue of ETFR had incorrect data in the columns labeled “2010,” “2009,” “3-Yr,” <strong>and</strong> “5-Yr” in the<br />
data section. That has been corrected in the downloadable PDF currently available on the website. The error did not appear in the<br />
exp<strong>and</strong>ed data available in the online version of ETFR.<br />
Data for every U.S.-listed ETF can be found in the online version (both in printlike PDF format or in searchable HTML at www.indexuniverse.com/ETFR) for<br />
paid subscribers. For exp<strong>and</strong>ed data coverage including more than 40 data points for indexes, index funds <strong>and</strong> <strong>ETFs</strong>, visit www.indexuniverse.com/data<br />
Data as of 03/31/2011. Source: Morningstar. Exp Ratio is annual expense ratio. <strong>Asset</strong>s are net assets in $<strong>US</strong> millions. YTD is year-<strong>to</strong>-date. 12-Mo is 12-month <strong>to</strong>tal return.<br />
3- <strong>and</strong> 5-year returns are annualized. Mkt Cap is geometric average market capitalization. P/E is price-<strong>to</strong>-earnings ratio. Std Dev is 3-year st<strong>and</strong>ard deviation.<br />
Yield is 12-month. Includes all U.S.-listed <strong>ETFs</strong> <strong>and</strong> ETNs with assets over $100 million.<br />
22 ETFR • May 2011
VWO<br />
Vanguard MSCI Emerging Markets ETF<br />
Because every client’s portfolio should<br />
include some Vanguarding. ®<br />
VWO has a 65% lower expense ratio than the industry average. *<br />
Lower expense ratios mean your clients can keep more of their returns. So take a<br />
closer look at the Vanguard MSCI Emerging Markets ETF. With a lower expense ratio<br />
than the industry average, it can help your clients build a more solid portfolio.<br />
Are you Vanguarding your clients’ portfolios?<br />
To take a closer look, visit advisors.vanguard.com/VWO<br />
All investments are subject <strong>to</strong> risk. Vanguard funds are not insured or guaranteed.<br />
To buy or sell Vanguard ETF Shares, contact your financial advisor. Usual commissions apply. Not redeemable.<br />
Market price may be more or less than NAV.<br />
For more information about Vanguard ETF Shares, visit advisors.vanguard.com/VWO, call 800-453-3398,<br />
or contact your broker <strong>to</strong> obtain a prospectus. Investment objectives, risks, charges, expenses, <strong>and</strong> other<br />
important information are contained in the prospectus; read <strong>and</strong> consider it carefully before investing.<br />
Foreign investing involves additional risks including currency fluctuations <strong>and</strong> political uncertainty. S<strong>to</strong>cks of<br />
companies in emerging markets are generally more risky than s<strong>to</strong>cks of companies in developed countries.<br />
The funds or securities referred <strong>to</strong> herein are not sponsored, endorsed, or promoted <strong>by</strong> MSCI, <strong>and</strong> MSCI bears<br />
no liability with respect <strong>to</strong> any such funds or securities. For any such funds or securities, the prospectus or the<br />
Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with<br />
The Vanguard Group <strong>and</strong> any related funds.<br />
*Source: Morningstar as of 6/14/2010. Based on 2010 industry average expense ratio for emerging market <strong>ETFs</strong><br />
of 0.62% <strong>and</strong> Vanguard VWO expense ratio of 0.22%.<br />
© 2011 The Vanguard Group, Inc. All rights reserved. U.S. Pat. No. 6,879,964 B2; 7,337,138. Vanguard Marketing Corporation, Distribu<strong>to</strong>r.