Although it hasn’t been a very prosperous year for most investors, it has been a great year for the ETF industry. In 2011, the industry introduced 188 new funds, and those funds thus far have gathered a combined $5.7 billion in new assets.
Here’s a short list of some of the best and brightest of this year’s new offerings:
iShares High Dividend Equity Fund (HDV). This fund has captured $650 million in assets, trades 186,000 shares per day on average, and offers exposure to large-cap, dividend-paying equities.
PowerShares S&P 500 Low Volatility (SPLV). The fund has $650 million in assets, trades 600,000 shares per day, and offers exposure to the 100 lowest volatility companies in the S&P 500 Index.
PowerShares Senior Loan Portfolio (BKLN). At $170 million in assets and 90,000 shares traded per day, this is the smallest fund on our list of new ETFs. What’s interesting is that the fund is the first of its kind in the senior loan ETF space. It also boasts an attractive current yield of 5%.
Vanguard Total International Stock Index (VXUS). The fund has captured $440 million in assets and trades 130,000 shares per day. It tracks the stocks in the All Country World Index, which excludes the U.S. market.
WisdomTree Asia Local Debt (ALD). This bond fund has $417 million in assets, trades 167,000 shares per day, and invests in local debt denominated in Asian countries such as Indonesia, Malaysia, Singapore, South Korea and Thailand.
WisdomTree Managed Futures Strategies (WDTI). The fund holds $260 million in assets and trades 68,000 shares per day. It’s the first ETF of its kind to give you exposure to the managed futures market, a sector that typically only hedge funds tap.
As the ETF universe continues to grow, look for 2012 to be another banner year for the industry -- and that increased choice represents a win for investors.