According to an article on the Resource Investor website, Van Eck has a nuclear energy ETF in the works under their Market Vectors brand.It looks as though the fund will have uranium miners, nuclear energy producers and everything in between.
I tend to think these very narrow ideas can be a good thing. When it comes to very narrow themes (like uranium, exchanges or oil sands) it seems that non stockpickers are left out.
No one bats an eye if a do-it-yourselfer buys shares of Cameco (CCJ) with 2% of their portfolio but if someone buys the HealthShares Metabolic Endocrine Disorders ETF (HHM) with 2% Jack Bogle writes an op-ed in the Journal.
That someone can learn a lot about one small-ish industry but still not want to take single stock risk seems more than plausible. I'm not sure that an investment product with ten global exchanges or seven Australian banks can be an ETF but the name of the product means a lot less than what the product owns.
I will concede that it seems unlikely that too many investment companies will take the risk that goes with something like this but maybe there will be another company that does take these risks like HealthShares does.
There are probably one or two very narrow themes that interest you for whatever reason. That you might not think of yourself of a stockpicker doesn't mean you can't add one or two stocks to your portfolio.
8 comments:
It seems to me that most of the likely investors in a nuclear power ETF are implicitly looking for an active mgmt. that saves them time in terms of researching the industry and the investment opportunities. Whatever else the ETF does, it should be very explicit about its policies with regard to current and future portfolio composition and criteria.
What were you saying about ETF's Roger?
I was distracted by the picture on the right.
OG
hearty chuckle, the ad will be gone this week.
apologies for the offensive picture.
Well, I see that the buxom "lady" leads one to P-trades. (I didn't click on it until I saw your post and figured that is was "safe" to peek).
I may be the target market for the said ETF. I hope you remind us all when it hits market. Do you pick the ads on the site or does google?
hope it's not Roger.
For those of us with AdBlock Plus installed we can only imagine the photo being discussed.
You can temporarily "whitelist" the site by right clicking the Adblock menu on the status bar at the bottom of the browser. I actually thought the ad was somewhat humorous.
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