I knew ETFs were getting big, but to be honest, I haven't really followed the area all that closely. I'm not sure how seriously to take the tone of this blog post about the new ETFs coming to market next year, but still, some out-there stuff, no? I'm most intrigued by the AirShares EU Carbon Allowances ETF, which is somehow an ETF based on carbon emissions, as explained here. I don't quite get how that's supposed to work, but maybe you can find a place for it in your portfolio. I think I'll start paying more attention to new ETF issues, if only for the sheer enjoyment of it.
(via Abnormal Returns)
I believe the EU has allows certain industries to auction/trade pollution (carbon dioxide, sulfer dioxide, etc.) credits in order to help lower emissions. This ETF seems to be a based off of a futures of these credits. I have no idea how they are priced or anything of that sort.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/12/03/MNMMTJUS1.DTL
Posted by: Max Power | December 27, 2007 at 09:23 PM
I think there will be a day when ETF's get hit with bad press about how they misrepresent the exposure they offer investors. Not that they are all bad, its great to let common people get exposure to exotic financial instruments for cheap, but as with everything there are now some complex etf's which need to perform some financial gymnastics in order to try and mimic the exposure they advertise. As this gets more exotic one can imagine that some will have questionable years whereby they completely fail to mimic the exposure investors want. (for example, something a bit vague like an "asia consumer" etf losing value while asia retail demand soars)
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