ETF Trends CEO Tom Lydon discussed the VanEck Vectors Brazil Small-Cap ETF (BRF) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

BRF offers targeted exposure to Brazil's small cap segment, making it a powerful tool that can be used to fine-tune equity portfolios. Given the granularity of this fund, BRF likely has some appeal to long-term investors with a buy-and-hold philosophy but it is more likely to appeal to those looking to implement a tactical shift or capitalize on perceived mispricings over a relatively short time horizon. However, some might view the product as a more accurate representation of the Brazilian economy instead of the top-heavy-- as well as energy and financial heavy-- EWZ. Small and mid caps are thought by many to offer more of a pure-play on national economies but small caps are likely to offer less stability than their mid cap brethren but could offer higher returns over the long run. However, this targeted exposure comes at a price as the fund has only about 40 holdings in total and it has high levels of concentration in some of its top holdings. But for efficient, targeted exposure to Brazil's small caps, BRF can certainly deliver. The expense ratio on this fund is comparable to other products in the category, and given its focus on small caps, this suggests that the fund is a pretty good value for investors and traders alike.

ETF Trends CEO Tom Lydon discussed the ETF of the Week: iShares Global Clean Energy (ICLN) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

This fund offers a way to invest in the global clean energy index, including both domestic and international stocks in its portfolio. Given the narrow focus, ICLN likely doesn't deserve a huge weighting in a long-term portfolio, but can be useful as a satellite holding to cover a corner of the market that is often overlooked by broad-based funds. For investors who maintain a long-term bullish outlook on the alternative energy space, this fund can be a nice way to achieve broad-based exposure; ICLN includes companies engaged in various sub-sectors, such as wind power, solar power, and other renewable sources. Those seeking more targeted exposure within the clean energy space have multiple options available for betting on solar power (such as TAN or KWT), nuclear power (URA or NLR), or wind power (FAN or PWND). The portfolio maintained by ICLN is somewhat limited; it has only a few dozen holdings, and some of the components account for big chunks of assets. But that is to be expected given the asset class represented; the number of public alternative energy companies is somewhat limited. Other options providing similar exposure include PBW, PBD, and GEX; a comparison of the expenses, allocation to emerging markets, depth of holdings, and breakdown by sub-sector will help to determine which fund is right for their objectives and risk tolerance.

ETF Trends CEO Tom Lydon discussed the SPDR S&P 500 ETF Trust (SPY) vs Invesco S&P 500 Equal Weight ETF (RSP) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

SPY is one of the largest and most heavily-traded ETFs in the world, offering exposure to one of the most well known equity benchmarks. While SPY certainly may have appeal to investors seeking to build a long-term portfolio and include large cap U.S. stocks, this fund has become extremely popular with more active traders as a way to toggle between risky and safe assets. A look at SPY's daily turnover reveals the short average holding period and the popularity with active traders.

RSP is linked to the S&P 500 Index, however its unique weighting methodology will make it useful for some, while impractical for active traders. Like many Rydex products, RSP is linked to an equal-weighted index, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as SPY, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive and less liquid than both SPY and IVV, though it is still extremely cost efficient compared to most mutual funds.

ETF Trends CEO Tom Lydon discussed the Defiance Nasdaq Junior Biotechnology ETF (IBBJ) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

IBBJ covers companies around the globe that are focused on various areas within the biotech or pharmaceuticals space. Included companies are those involved in genomics, DNA technology, genetic engineering, and molecular biology, as well as pharmaceutical manufacturers of prescription or over-the counter drugs. Its emphasis on pharmaceuticals makes IBBJ to differ from some peer funds and its segment benchmark. The underlying index concentrates its exposure to approximately 200 small-cap stocks that are exclusively listed on the NASDAQ Stock Market. Stocks selected must meet certain size and liquidity requirements. The index is market-cap weighted with 8% single security cap for five securities, and the excess is allocated proportionally across the rest. Index’s rebalance and reconstitution occurs semi-annually.

ETF Trends CEO Tom Lydon discussed the SPDR® S&P Homebuilders ETF (XHB) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

ETF Trends CEO Tom Lydon discussed the Global X Telemedicine & Digital Health ETF (EDOC) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

The Global X Telemedicine & Digital Health ETF (EDOC) seeks to invest in companies positioned to benefit from further advances in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Health Care Analytics, Connected Health Care Devices, and Administrative Digitization.

ETF Trends CEO Tom Lydon discussed the iShares MSCI Eurozone ETF (EZU) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

This ETF offers exposure to the equity markets of the EMU member countries: meaning only those who have adopted the Euro. This bloc of nations represents some of the strong economies east of the Atlantic, such as Germany, France, and Italy. This ETF offers exposure to some of Europe's largest companies as well, including the French energy firm Total SA, and the German conglomerate Siemens AG. From a sector standpoint, this fund does a good job of spreading its assets across the board, leaving investors with a healthy diversity when adding this fund to their portfolio. When it comes to countries, however, EZU does carry a bias towards France, Germany, and Spain, who account for the majority of the fund's asset allocation. This ETF may represent a strong play for investors who are looking to gain exposure to the euro through an equity structure, or for those who simply believe in these powerhouse economies.

ETF Trends CEO Tom Lydon discussed the Global X Education ETF (EDUT) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

EDUT provides a unique take on equities with high exposure to the education theme. Companies that facilitate digital learning, educational content publishing, for education at all levels around the world falls under this theme. EDUT undertakes extensive research to identify education companies based on industry reports, investment research and consumer data. Revenue-based company analysis is conducted to identify pure-play companies with greater than 50% revenues derived from facilitating e

ETF Trends CEO Tom Lydon discussed the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) was the first U.S.-listed ETF to offer direct exposure stocks listed in mainland Chinese markets in Shenzhen and Shanghai. ASHR tracks an index of 300 biggest and most liquid stocks. Unlike some other ETFs that use derivatives to mimic A-shares, ASHR buys the stocks directly. 

ETF Trends CEO Tom Lydon discussed the Direxion Work From Home ETF (WFH) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

The Direxion Work From Home ETF offers exposure to companies across four technology pillars, allowing investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment. The four pillars include Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses keywords to evaluate large volumes of publicly available information, such as annual reports, business descriptions, and financial news.