Posted by: Lauren Young on April 21, 2008
While new issuance of exchange-traded funds (ETFs) is down this year, filings for exchange-traded notes (ETNs) are picking up. ETNs have accounted for roughly one in every two launches this year. What gives?
“Many of these ETNs are commodity and currency-focused; it’s a worrisome development in my mind,” says Jeffrey Ptak, who is director of exchange-traded securities analysis at Morningstar. “I worry we are nearing a top in commodities judging on the activity we’ve seen in the commodity space.”
For up-to-the-minute news on ETFs and ETNs, check out Ptak’s blog, which debuted in January: Basis Pointing. His post on a new frontier ETF is especially illuminating. As he quips: “Kazakhstan Bulls, Rejoice!”