Over 270 ETFs were launched in 2017 and many are in the pipeline waiting for approval. But investors must be knowing that not all get to see the same success after months of trading. Some die an early death while some keep getting fuller with assets over time. Below we highlight a few new ETFs that may see smooth trading in 2018 and make a killing (read: 7 Successful New ETFs of 2017).
The AdvisorShares Vice ETF ACT
The fund is actively managed and invests in securities of companies that derive at least 50% of their net revenues from tobacco & alcoholic beverages & companies that derive at least 50% of their net revenues from the marijuana & hemp industry.
All such industries have huge growth potential. The Zacks Industry Rank of Alcoholic beverage is in the top 36% and half of the fund goes to alcohol. The story is the same for marijuana. So, this $7.9-million fund, which went on board in mid-December, has high chances of outperformance ahead (read: Rush for Marijuana ETFs Getting Stronger).
Principal US Mega-Cap Multi-Factor ETF USMC
The underlying index of the fund – the Nasdaq U.S. Mega Cap Select Leaders Index – uses a “quantitative model designed to identify equity securities of companies with the largest market capitalizations in the Nasdaq US 500 Large Cap Index, with higher weights given to securities that are less volatile.” Making a debut in October, the fund has already generated about $797 million in assets and has high chances of hitting $1 billion next year (read: 7 Successful New ETFs of 2017).
Entrepreneur 30 Fund ENTR
The underlying index of the fund takes care of 30 U.S. companies with the highest market capitalization and composite scores based on six criteria — management, compensation, revenue, ownership, profitability and company statistics. Entering the market in November, the fund has scooped up about $53.7 million in assets within a short span.
IBD ETF Leaders ETF LDRS
Having entered the market about only 10 days ago, the fund gained about $26.8 million in assets. The underlying index of the fund looks to outperform the broader equity and fixed income markets. It has a fund of funds approach. Global X China Consumer ETF CHIQ, ARK Innovation ETF ARKK and Guggenheim Solar ETF TAN are some of its top holdings.
KraneShares MSCI China Environment Index ETF KGRN
China, the world's largest car market, intends to put an embargo on the manufacturing and sale of diesel and petrol cars and vans. Plus, owing to the Chinese government’s crackdown on pollution, state run Jiangxi Copper was asked to cut production lately. All such moves indicate that KGRN should see surge in assets in 2018. The fund has garnered about $6.3 million, having hit the market in October (read: Follow These ETFs as China's 19th National Congress Begins).