Fund action - Tuesday, August 5, 2008
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SPA Eyes International ETFs
SPA ETFs is looking into its first international exchange-traded funds. The firm, which has offices in New York and London, offers six ETFs that invest only in U.S. stocks but is considering launches of at least one offering that invests in European companies and at least one offering that invests in Asian companies sometime next year. Neil Michael, head of quantitative strategies, said European clients demand European funds to gain access to stocks on their continent. An Asian fund makes sense, he added, because SPA wants to offer a line of ETFs that is broad enough for advisors to build entire portfolios out of, and a diverse portfolio should have exposure to the growing Asian economies.
SPA is also readying sector offerings that could include a financials ETF, an energy ETF and an information technology ETF. The firm hopes to launch them by year’s end. The financials ETF, said Michael, could be timely as recovery play, as he feels banks are beginning to repair their balance sheets. FA first reported that SPA would launch sector ETFs last month (FA, 6/2).
SPA ETFs use a strategy that combines active and passive elements. Through a deal with MarketGrader, the offerings track that firm’s quantitative indexes. The strategy involves 24 fundamental factors.
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