Even the worst economy since the Great Depression and a president who chastises white-collar financial workers for not “making anything” hasn’t stopped the intense pace of innovation in the ETF space, where no fewer than 250 funds await regulatory approval. These aren’t the usual bevy of large-cap lookalikes full of Exxon Mobil (XOM: 66.67, -1.77, -2.58%) and Google (GOOG: 395.97, +4.50, +1.14%). Previously unattainable markets, from commodities, currencies and real estate will soon be as easy to trade as General Electric (GE: 12.65, +0.43, +3.51%)… if the SEC ever gets around to permitting them to list. Here are a few of the upcoming products I’m anticipating the most.
1. ETFs Palladium Trust (No Ticker Yet)
Palladium, a sister metal to platinum, is used extensively in auto catalysts, which accounts for roughly 55% of the total demand. It’s also used in dentistry, electronics and jewelry, giving it somewhat of a split personality. It’s an industrial metal that’s often closely correlated with gold and silver. The majority of supply comes from Russia and South Africa, where disruptions in production can often lead to sharp spikes in price.
Longtime readers know I’ve had some success in the past with palladium-related equities such as North American Palladium (PAL: 1.81, +0.07, +4.02%) and Stillwater Mining (SWC: 4.51, +0.01, +0.22%). Not unlike SPDR Gold Trust (GLD: 87.27, -1.06, -1.20%) or iShares Silver Trust (SLV: 12.21, -0.34, -2.70%), the ETFs Palladium Trust will aim to simply track the price of palladium, less expenses, making it easier and less cumbersome to trade than futures contracts or actually taking physical delivery. A small and comparatively illiquid market, palladium likely will move quite quickly once signs of an economic recovery begin to appear. For those interested in this unusual opportunity, the prospectus is an informative read.
Full Story: http://www.smartmoney.com/Investing/ETFs/Three-New-ETFs-Worth-Waiting-For/