Posted by: Aaron Pressman on November 29, 2006
Commenter Eli Nahass asks, after reading a recent post about the booming market for derivatives exchanges, if there are any ETFs that invest primarily in such shares. The answer is, I’m afraid, not really.
You can see which ETFs hold a big position in a stock by looking on the stock’s “components” page on Yahoo Finance. For example, the Chicago Board of Trade (Symbol: BOT) isn’t listed in the top 10 holdings of any ETF. It went public just over a year ago so maybe that’s not surprising. Cross-town rival Chicago Mercantile Exchange (CME) checks in at 5% of the iShares Dow Jones U.S. Broker-Dealers ETF (IAI) and an unspecified percentage of the streetTRACKS KBW Capital Markets ETF (KCE). ETFconnect.com, another good source of ETF info, says KCE holds almost 6% of its assets in the CME. But both of those ETFs are primarily owners of big brokerage companies like Goldman Sachs (GS) and Merrill Lynch (MER).
The New York Stock Exchange (NYX) is listed as a top 10 holding only in the First Trust IPOX-100 Index ETF (FPX), which essentially buys shares of major IPOs on the seventh day after they go public and holds them for a set period of 1,000 days. The New York Mercantile Exchange (NMX), which had its heady debut just the other day, isn’t yet a major holding in any ETF. So no holiday ETF cheer for derivatives exchanges, Eli.