The Worst New ETFs of 2007
Our list of the ill-conceived and sublimely wacky ETFs that launched last year.
Last week we presented our short list of the "Best New ETFs of 2007." But when the ETF universe nearly doubles within 12 months, as it did last year, there are bound to be some duds. So, we'd be remiss if we didn't also tally up the worst that 2007 had to offer. These are ETFs that for reasons of (poor) timing, (nosebleed) valuation, or other factors (inexplicable daffiness) left us straining for adjectives.
"Don't Tase Me, Bro!"
ETF providers launched a number of funds in categories that, to put it charitably, looked frothy entering 2007. Emerging markets and real estate topped that list, though natural-resources funds weren't far behind. All told, 72 such ETFs launched in 2007.
No, there's not necessarily cynical intent behind all of these launches. For instance, some can argue that despite their strong run, commodities aren't yet stretched given seemingly unquenchable worldwide demand and constrained supply.