MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, October 2, 2012 There's (Another) New Player in the ETF Market The Nashville-based LocalShares is joining the ETF market. Cinthia Murphy reports for Index Universe that the money management firm has prepped paperwork for LocalShares Nashville ETF, which will invest solely on Nashville-based companies. Murphy writes that the fund would replicate a proprietary index that tracks the performance of Nashville companies that have a minimum of $100 million in market capitalization and that have seen at least 50,000 shares in average daily trading volume during the prior three months. Decker Wealth Management is the subadvisor. The fund will charge annual fees of 49 basis points. Launching a fund based on state geography is not new, writes Murphy, but it's definitely rare. She notes that LocalShares "tops its list of risk warnings" to investor by pointing out that this nondiversified strategy is a "new fund," and as such it might not attract enough assets to keep tracking error to a minimum or to even reach an "economically viable size." The firm, it seems, has listed the possibility of liquidation as the biggest risk associated with the fund. To read more about this Nashville fund, go to the article here. Printed from: MFWire.com/story.asp?s=41471 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |