Three New ETF Clones From GlobalShares
Wednesday, April 7th, 2010Ron Rowland submits:
Old Mutual added three ETFs to its GlobalShares lineup yesterday (4/6/10). Similar to its previous two fund launches, these new funds are nearly identical to existing products from other sponsors. Joining an already crowded field are GlobalShares FTSE All-World Fund (GSW), GlobalShares FTSE All-World ex-US Fund (GSO), and GlobalShares FTSE All-Cap Asia Pacific ex-Japan Fund (GSZ).
Old Mutual’s ETF strategy is unclear. Launching funds that are essentially clones of ETFs from proven sponsors that enjoy lower expense ratios and better brand recognition sounds like a recipe for disaster. Old Mutual has tried a few tricks like zero expense ratio teasers and share splitsto attract attention, but those attempts have failed so far. I anticipate seeing all five of the GlobalShares funds on ETF Deathwatch once their six-month grace periods expire.
