Focusing On Terrorism, Vices And Wal-Mart

12 5 2007 12:29PM

Here are more ETFs for the what-will-they-come-up-with-next category. FocusShares, an investment management startup, has floated a new family of ETFs based on indexes developed by the International Securities Exchange (NYSE:ISE - News):

FocusShares ISE Homebuilders Index (NYSEArca:SAW - News): Holds 23 names in residential home construction or prefabricated home building including Beazer Homes USA (NYSE:BZH - News) and WCI Communities (NYSE:WCI - News).

It overlaps a great deal with the iShares Dow Jones U.S. Home Construction (NYSE:ITB - News). Both exclude home improvement suppliers, such as Home Depot (NYSE:HD - News), Lowe's (NYSE:LOW - News), Sherwin-Williams (NYSE:SHW - News), which are in the SPDR S&P Homebuilders (AMEX:XHB - News).

FocusShares ISE SINdex (NYSEArca:PUF - News): Holds 30 companies involved in alcohol, tobacco or gambling from AmBev (NYSE:ABV - News) to Wynn Resorts (NasdaqGS:WYNN - News).

It's the first ETF of its kind, but hardly a novel concept. That honor goes to the Vice Fund (NASDAQ:VICEX - News), which started August 2002. But it also includes defense and aerospace companies. The mutual fund has gained 19% year to date. It has returned 17.2% and 21.3% on a three- and five-year annualized basis.

FocusShares ISE-CCM Homeland Security Index (NYSEArca:MYP - News): Holds 30 Department of Homeland Security contracted companies that provide services related to counterterrorism, defense, intelligence, protection and emergency preparedness and response, including L-3 Communications (NYSE:LLL - News), McAfee (NYSE:MFE - News), Thermo Fisher (NYSE:TMO - News) and Taser International (NasdaqGS:TASR - News).

It overlaps some with the broader PowerShares Aerospace and Defense (AMEX:PPA - News) and iShares Dow Jones U.S. Aerospace & Defense Index-ITA. It includes technology and biotechs such as Cepheid (NasdaqGM:CPHD - News) and Avi Biopharm (NasdaqGM:AVII - News). They're both developing products to deal with potential bioterrorism.

It has jumped 23.2% year to date, according to the ISE.

ISE used research data provided by Cronus Capital Markets (CCM), investment information firm, to screen for the index components.

FocusShares ISE-REVERE Wal-Mart Supplier Index (NYSEArca:WSI - News):

Holds 30 companies that get a large portion of their revenues from the world's largest retailer , such as Del Monte Foods (NYSE:DLM - News), Hanesbrands (NYSE:HBI - News), Kellogg (NYSE:K - News) and Mattel (NYSE:MAT - News).

This is a basket of household names. But it's very different from the broader Consumer Staples Select Sector SPDR (AMEX:XLP - News). It doesn't hold blue chips, such as Procter & Gamble (NYSE:PG - News)and Coca Cola (NYSE:KO - News), although their products also are found in Wal-Mart stores.

Wal-Mart accounted for 31% of Del Monte's sales the prior fiscal year, Kellogg 18% and Mattel nearly 20%.

ISE teamed up with Revere Data, an equity analytics firm to devise the screen for the index. It has risen 1.17% year to date, trailing Wal-Mart, which is ahead 4%.

All four started trading Nov. 30. They charge 0.35% to 0.6% in fees.

Focusing On Terrorism, Vices And Wal-Mart

Dow Jones , WCI Communities , Department of Homeland Security , Wal , Mart stores , Beazer Homes USA , Business , Investor's Business Daily , Focusing , Terrorism , Vices , Mart

Focusing On Terrorism, Vices And Wal-Mart

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