A Genocide Free ETF?
Just when you had thought you had seen it all with exchange-traded funds, Barclay’s ups the standard by announcing the release of a “Genocide-Free” ETF. The new fund will avoid companies that are directly or indirectly involved in profiting from regions and businesses that are so called benefactors of genocide.
Gimmick or Realistic?
Just as the Oklahoma ETF (OOK) was said to be a gimmick, I can only expect that this one would earn the same label. Though there is merit to avoiding regions and businesses that profit from genocide, I can’t imagine that people are willing to stake the returns of their portfolio based solely on avoiding genocide. Will the ETF avoid most African investments? Diamond producers? Or will the company go further, opting to dissuade itself from weapons manufacturers? Who knows, Barclay’s didn’t seem to want to shed too many details in the new exchange-traded fund.
Are ETFs Getting A Little Crazy?
Exchange traded funds have certainly highlighted some interesting portfolio options. From the obscure (think Oklahoma based stocks) to the frightening (genocide-free?), exchange-traded funds seem to be quick to fill even the smallest of voids. I know of very few investors myself who have wanted to invest only in Oklahoma and even fewer who voiced their discontent regarding investments in companies that benefit from genocide. In fact, I haven’t even once questioned that genocide is profitable. Who knows.
Are Gimmicks the Future of ETFs?
Exchange-traded funds have virtually exhausted every sector, commodity, or geographical investment any investor could ever need. Want small cap exposure to China? There’s and ETF for that. BRIC large caps? There’s an ETF for that too. In the landgrab that was exchange-traded funds, ETF issuers are either going to have to go out of the box, or replicate another successful fund. I’m betting it will be a mixture of both.
