Welcome to the World of Niche-tfs
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Today the world of niche ETFs got a little larger, as the Sustainable North American Oil Sands ETF (NYSE: SNDS) began trading. As you might guess, SNDS invests in companies related oils sands, although it is unclear why it is being call 'sustainable'.
SNDS is the latest ETF serving what is turning out to be a cottage industry for investors, the "niche" ETF.
The idea is nothing new. ETFs have been getting more and more sector specific for years, and some of the most popular ETF include (NYSE: CUT) invests in the timber industry, (NYSE: MOO) invests in agriculture, and (NYSE: SOCL) which invests in social media companies. These investments go hand and hand with more commonly know ETFs like GLD and USO.
If you want an extreme example, there is even an ETF that invests in common stocks using investment principals that meet strict Islamic principles (NYSE: JVS). And why not? After all, certain businesses are simply incompatible with Shari'ah laws.
Despite what at first glance might seem like unnecessary investments vehicles, the truth is no one is complaining about niche ETFs. Why would they? They cater to investor tastes, which as it turns out is as varied as an iPod playlist. Considering the fact that ETFs now represent one-third of equity exchange volume, the list of 'niche-tfs'’ is likely to grow in the coming months and years.
SNDS is the latest ETF serving what is turning out to be a cottage industry for investors, the "niche" ETF.
The idea is nothing new. ETFs have been getting more and more sector specific for years, and some of the most popular ETF include (NYSE: CUT) invests in the timber industry, (NYSE: MOO) invests in agriculture, and (NYSE: SOCL) which invests in social media companies. These investments go hand and hand with more commonly know ETFs like GLD and USO.
If you want an extreme example, there is even an ETF that invests in common stocks using investment principals that meet strict Islamic principles (NYSE: JVS). And why not? After all, certain businesses are simply incompatible with Shari'ah laws.
Despite what at first glance might seem like unnecessary investments vehicles, the truth is no one is complaining about niche ETFs. Why would they? They cater to investor tastes, which as it turns out is as varied as an iPod playlist. Considering the fact that ETFs now represent one-third of equity exchange volume, the list of 'niche-tfs'’ is likely to grow in the coming months and years.
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