Two GDP-Weighted ETFs Proposed; A Better Mousetrap?

With growth levels in the U.S. stagnating thanks to high unemployment levels and minimal policy options due to massive debt burdens, many investors have looked beyond American shores in order to find investment allocations that can potentially offer more growth and greater returns. While there is no shortage of international and emerging market ETFs on the market today, some investors have expressed frustration with the “exposure biases” built into the largest and most liquid options available. That is particularly the case with many of the diversified global equity ETFs available; many of these funds concentrate holdings into a small handful of countries using weighting strategies that don’t correspond to true economic size [see How Global Is Your Global ETF? for a closer look at this issue]. As ETF issuers evolve their product lines and the industry continues to evolve, two new GDP-weighted ETFs have been proposed by Van Eck to [...] Click here to read the original article on ETFdb.com. Related Stories: Revenue Weighted ETFs Continue Impressive Run Are Your Cap-Weighted ETFs Leaders Or Laggards? Citi Rebalancing Highlights Benefits of Revenue Weighted ETFs