ETF ETN Review

PowerShares DB Commodity Index Tracking Fund (DBC)

2008-08-14T12:18:00.004-04:00

The PowerShares DB Commodity Index Tracking Fund (DBC) started trading in February 2006. It tracks the Optimum Yield Excess Return version of the Deutsche Bank Liquid Commodity Index, minus expenses and fees.

The Optimum Yield Excess Return Index consists of futures contracts on aluminum, corn, crude oil, gold, heating oil, and wheat. These are the six most heavily traded commodities. The index is rebalanced annually in November.

The fund has an expense ratio of 0.75%. Additional expenses include an estimated 0.08% futures brokerage fee. Because the fund trades futures contracts, there are important tax considerations that potential investors should discuss with a tax professional.

As of August 2008, the PowerShares DB Commodity Index Tracking Fund had the following commodity breakdown:

Aluminum 10.49%
Corn 11.71%
Gold 7.74%
Heating Oil 22.21%
Crude Oil 36.7%
Wheat 11.16%

The fund pays out an annual distribution.

iShares Global Infrastructure Index ETF (IGF)

2008-08-13T14:22:00.007-04:00

The iShares Global Infrastructure Index ETF (IGF) started trading in December 2007. As its name suggests, it tracks the S&P Global Infrastructure Index, minus expenses and fees. The ETF's approach to tracking the index is full replication. That is, IGF attempts to own every stock in the index whenever possible.

The S&P Global Infrastructure Index tracks the performance of the world's leading publicly listed infrastructure companies. The index includes companies from both developed and emerging economies. It has 75 components.

As of August 2008, the ETF had the following sector breakdown:

Energy 23.35%
Industrials 35.3%
Utilities 40.9%

The ETF is passively managed, with an expense ratio of 0.48%. The fund's most recent turnover rate was 1%.

Although this is subject to change, the ETF pays a quarterly dividend in March, June, September and December. The distribution amount varies from quarter to quarter.

As of August 2008, the iShares Global Infrastructure Index ETF held 75 stocks. International holdings comprise almost 3/4 of the portfolio.

The ETF's holdings are listed below.

SPDR DJ Wilshire Global Real Estate ETF (RWO)

2008-08-13T12:26:00.007-04:00

The SPDR DJ Wilshire Global Real Estate ETF (RWO) started trading in May 2008. The ETF tracks the Dow Jones Wilshire Global Real Estate Securities Index, minus expenses and fees. The ETF takes a sampling approach to tracking the index, attempting to own most of the index's 236 components.

The Dow Jones Wilshire Global Real Estate Securities Index tracks publicly traded real estate securities, both in developed and emerging markets.

As of August 2008, the ETF had the following industry breakdown:

Apartments 7.79%
Diversified 15.55%
Factory outlets 0.22%
Health care 4.9%
Hotels 2.46%
Industrial 4.82%
Industrial/Office 4.17%
Manufactured homes 0.25%
Office 12.59%
Real estate operating companies 20.64%
Regional malls 16.51%
Specialty 0.07%
Storage 2.44%
Strip centers 6.47%
Other 1.13%

The nation breakdown was the following:

United States 46.32%
Japan 10.48%
Australia 9.84%
United Kingdom 7.81%
Canada 5.53%
France 5.05%
Hong Kong 4.9%
Singapore 3.74%
Austria 1.87%
Netherlands 1.45%
Switzerland 0.73%
Sweden 0.68%
Belgium 0.52%
Germany 0.33%
New Zealand 0.33%
South Africa 0.26%
Italy 0.1%
China 0.04%
Spain 0.02%

The ETF is passively managed, with an expense ratio of 0.5%.

Although this is subject to change, the ETF pays a quarterly distribution in March, June, September, and December. Distributions may include regular income, short and long term capital gains, unrecaptured section 1250 gains, and return of capital.

As of August 2008, the SPDR DJ Wilshire Global Real Estate ETF held 217 stocks. Its holdings are listed below.

SPDR Lehman International Treasury Bond ETF (BWX)

2008-08-13T12:05:00.005-04:00

The SPDR Lehman International Treasury Bond ETF (BWX) started trading in October 2007. The ETF tracks the Lehman Global Treasury ex-US Index, minus expenses and fees.

The Lehman Global Treasury ex-US Index measures the performance of fixed rate local currency investment grade government debt. It includes both developed and emerging market government debt.

The ETF is passively managed, with an expense ratio of 0.5%.

As of August 2008, Japan represented almost a quarter of the fund's holdings. Germany and Italy were in the top three, representing about 1/8 each.

The ETF pays a monthly distribution. The ex-date is usually the first trading day of the month.

The SPDR Lehman International Treasury Bond ETF's holdings, as of August 2008, are listed below.

Note that the ETF's holdings may, from time to time, include currencies.

SPDR DB International Government Inflation Protected Bond ETF (WIP)

2008-08-13T11:44:00.007-04:00

The SPDR DB International Government Inflation Protected Bond ETF (WIP) started trading in mid March 2008. The ETF tracks the DB Global Government ex-US Inflation Linked Bond Capped Index, minus expenses and fees.

The DB Global Government ex-US Inflation Linked Bond Capped Index measures the performance of inflation linked foreign government bonds. It includes both developed and emerging market government debt.

The ETF is passively managed, with an expense ratio of 0.5%. It pays out a monthly distribution, which varies. The ex-date is usually the first trading day of the month.

As of August 2008, the top ten nations represented were:

Brazil 4.97%
Canada 4.68%
France 19.33%
Germany 4.52%
Israel 4.27%
Italy 4.68%
Japan 4.78%
Mexico 4.7%
Sweden 5.74%
United Kingdom 19.54%

The SPDR DB International Government Inflation Protected Bond ETF's holdings, as of August 2008, are listed below.

Note that the ETF's holdings may, from time to time, include currencies.

SPDR Barclays Capital TIPS ETF (IPE)

2008-08-13T11:14:00.007-04:00

The SPDR Barclays Capital TIPS ETF (IPE) started trading in late May 2007. The ETF tracks the Barclays US Government Inflation-linked Bond Index, minus expenses and fees.

The Barclays US Government Inflation-linked Bond Index tracks the US Treasury Inflation Protected Securities market.

The ETF is passively managed, with an expense ratio of 0.1845%. It pays out a monthly distribution, which varies. The ex-date is usually the first trading day of the month.

The SPDR Barclays Capital TIPS ETF's holdings, as of August 2008, are listed below.

Claymore/BNY Mellon Frontier Markets ETF (FRN)

2008-08-12T14:56:00.005-04:00

The Claymore/BNY Mellon Frontier Markets ETF (FRN) started trading in mid June 2008. The ETF tracks the Bank of New York Mellon New Frontier DR Index, minus expenses and fees. FRN takes a replication approach to tracking the index, attempting to own all of the index's components. At times, however, the fund may use a sampling approach to track the index, and may hold futures or other derivatives.

The Bank of New York Mellon New Frontier DR Index measures the performance of American Depository Receipts and Global Depository Receipts of frontier market nations, which trade on the AMEX, LSE, NASDAQ, and NYSE exchanges.

As of July 2008, the index had the follow sector breakdown:

Basic materials 14.85%
Consumer cyclical 0.89%
Consumer staples 4.68%
Energy 10.55%
Financials 39.42%
Industrials 6.87%
Telecommunication 14.68%
Utilities 8.07%

The ETF is passively managed, with an expense ratio of 0.65%. The expense ratio is capped at 0.65% until the end of 2010, after which it may be higher.

As of August 2008, the Claymore/BNY Mellon Frontier Markets ETF held 48 stocks with the following nation breakdown:

Poland 23.64 %
Chile 20.36 %
Egypt 17.63 %
Kazakhstan 7.67 %
Peru 5.47 %
Lebanon 3.37 %
Nigeria 3.24 %
Czech 3.24 %
Kuwait 3.03 %
Pakistan 3.01 %
Oman 2.28 %
Colombia 2.02 %
Ukraine 1.90 %
Bahrain 1.42 %
United Arab Emerites 0.89 %
Georgia 0.61 %
Estonia 0.22 %

The Claymore/BNY Mellon Frontier Markets ETF's holdings, as of August 2008, are listed below.

Vanguard REIT Index ETF (VNQ)

2008-08-12T14:32:00.005-04:00

The Vanguard REIT Index ETF (VNQ) started trading in late September 2004. The ETF tracks the MSCI US REIT Index, minus expenses and fees. VNQ takes a replication approach to tracking the index, attempting to own all of the index's components.

The MSCI US REIT Index measures the performance of around 67% of the US Real Estate Investment Trust market.

The ETF is passively managed, with an expense ratio of 0.1%. The fund's most recent annual turnover rate was 36%.

Although this is subject to change, VNQ pays a quarterly distribution in March, June, September, and December. Distributions may include regular income, short and long term capital gains, unrecaptured section 1250 gains, and return of capital.

As of July 2008, the Vanguard REIT Index ETF held 97 stocks with the following industry breakdown:

Diversified 8.3%
Industrial 9.5%
Office 16.5%
Residential 15.1%
Retail 28.3%
Specialized 22.3%

The Vanguard REIT Index ETF's holdings, as of July 2008, are listed below.

Vanguard Total Bond Market Index ETF (BND)

2008-08-12T14:07:00.005-04:00

The Vanguard Total Bond Market Index ETF (BND) started trading in April 2007. The ETF tracks the Lehman US Aggregate Bond Index, minus expenses and fees. BND takes a sampling approach to tracking the index, owning over a third of the index's components.

The Lehman US Aggregate Bond Index measures the performance of the US bond universe. This includes asset backed securities, corporate backed securities, government securities, and mortgage backed securities.

The ETF is passively managed, with an expense ratio of 0.11%. The fund's most recent annual turnover rate was 54%.

Although this is subject to change, BND pays a monthly distribution. The ex-date is usually the first trading day of every month. Distribution amounts vary.

As of July 2008, the Vanguard Total Bond Market Index ETF held 3,410 bonds. They had an average maturity of 7.5 years, and an average credit quality of AA1/AA2. The average coupon was 5.5%.

Vanguard Emerging Markets Stock Index ETF (VWO)

2008-08-12T12:53:00.007-04:00

The Vanguard Emerging Markets Stock Index ETF (VWO) started trading in March 2005. The ETF tracks the MSCI Emerging Markets Index, minus expenses and fees. VWO takes a sampling approach to tracking the index.

The MSCI Emerging Markets Index measures the performance of around 85% of the publicly available emerging market capitalization. It is market capitalization weighted and reviewed quarterly.

The ETF is passively managed, with an expense ratio of 0.25%. The fund's most recent annual turnover rate was 9%.

Although this is subject to change, VWO pays an annual dividend in December.

As of July 2008, the Vanguard Emerging Markets Stock Index ETF held 822 stocks. The following is a country breakdown, along with the ETF's top 25 holdings.

FTSE All World Except US Index ETF (VEU)

2008-08-11T16:21:00.004-04:00

The FTSE All World Except US Index ETF (VEU) started trading in late March 2007. As its name suggests, it tracks the FTSE All World ex-US Index, minus expenses and fees. VEU takes a sampling approach to tracking the index. As of July 2008, the ETF owned just over 81% of the index's components.

The FTSE All World ex-US Index measures the performance of over 90% of the world equity market capitalization, excluding the United States. As of August 2008, the index had around 2,700 component stocks.

The ETF is passively managed, with an expense ratio of 0.25%. The fund's most recent annual turnover rate was 10%.

Although this is subject to change, VEU pays an annual dividend in December.

As of July 2008, the FTSE All World ex-US Index ETF held 2,192 stocks, with the following country breakdown.

Vanguard Total Stock Market Index ETF (VTI)

2008-08-11T14:50:00.006-04:00

The Vanguard Total Stock Market Index ETF (VTI) started trading in late May 2001. It tracks the MSCI US Broad Market Index, minus expenses and fees. VTI takes a sampling approach to tracking the index. It aims to own roughly 95% of the index's components.

The MSCI US Broad Market Index measures the performance of over 99% of the US equity market capitalization. As of August 2008, the index had almost 4,000 component stocks.

The ETF is passively managed, with an expense ratio of 0.07%. The fund's most recent annual turnover rate was 4%.

Although this is subject to change, VTI pays a quarterly dividend in March, June, September, and December. The dividend is irregular, and past distributions have ranged from $0.13 a share to $0.3925 a share.

As of July 2008, the Vanguard Total Stock Market Index ETF held 3,538 stocks, with the following sector breakdown.

Basic materials 4.4%
Consumer cyclical 8.9%
Consumer staples 9.3%
Energy 15.2%
Financials 14.6%
Health care 11.8%
Industrials 11.7%
Information technology 16.8%
Telecommunications 3.1%
Utilities 4.2%

Market Vectors Global Alternative Energy ETF (GEX)

2008-08-04T15:29:00.007-04:00

The Market Vectors Global Alternative Energy ETF (GEX) started trading in May 2007. It tracks the Ardour Global Index, minus expenses and fees. Its approach in tracking the index is full replication. The ETF attempts to own all of the index's components.

The Ardour Global Index measures the performance of corporations deriving at least half of their revenues from alternative energy. Components must have market caps over $100 million and an average share price of at least $1 over the last three months. Out of stocks meeting these criteria, Ardour selects the 30 with the highest market caps and trading volumes. Index components may include stocks traded on international exchanges.

The ETF is passively managed, with an expense ratio of 0.65%. Expenses are capped at 0.65% until May 2009, after which they may be higher.

The ETF has not paid dividends in the past.

As of August 2008, the Market Vectors Global Alternative Energy ETF holds all 30 stocks in its underlying index. Its holdings are listed below.

Market Vectors Solar Energy ETF (KWT)

2008-08-04T15:05:00.006-04:00

The Market Vectors Solar Energy ETF (KWT) started trading in late April 2008. It tracks the Ardour Solar Energy Index, minus expenses and fees. Its approach in tracking the index is full replication. The ETF attempts to own all of the index's components.

The Ardour Solar Energy Index measures the performance of corporations deriving at least two thirds of their revenues from solar cells, solar heating, or solar lighting. Components must have market caps over $100 million, free floats over $50 million, and an average daily trading volume of at least $1 million. Index components may include stocks traded on international exchanges.

The ETF is passively managed, with an expense ratio of 0.65%. Expenses are capped at 0.65% until May 2009, after which they may be higher.

The ETF has not paid dividends in the past.

As of August 2008, the Market Vectors Solar Energy ETF holds all 34 stocks in its underlying index. Its holdings are listed below.

PowerShares WilderHill Clean Energy Portfolio ETF (PBW)

2008-08-04T14:27:00.011-04:00

The PowerShares WilderHill Clean Energy Portfolio ETF (PBW) started trading in March 2005. It tracks the WilderHill Clean Energy Index, minus expenses and fees.

The WilderHill Clean Energy Index measures the performance of corporations that stand to benefit from clean energy use and energy conservation. Component weightings are determined qualitatively, by what WilderHill deems their significance, influence, and relevance in using clean energy and preventing energy pollution. The index is rebalanced quarterly, and may hold American Depository Receipts.

The ETF is passively managed, with an expense ratio of 0.7%. The most recent annual turnover rate was 20%.

As of August 2008, the ETF had the following sector breakdown:

Consumer cyclical 7.47%
Consumer staples 2.39%
Energy 6.48%
Health care 0.89%
Industrials 30.89%
Information technology 28.54%
Materials 8.85%
Utilities 14.49%

The ETF paid a dividend of $0.01 per share in June 2006.

As of August 2008, the PowerShares WilderHill Clean Energy Portfolio ETF holds 54 stocks. Its holdings are listed below.

PowerShares Global Wind Energy Portfolio ETF (PWND)

2008-08-04T13:56:00.005-04:00

The PowerShares Global Wind Energy Portfolio ETF (PWND) started trading in July 2008. It tracks the NASDAQ OMX Clean Edge Global Wind Energy Index, minus expenses and fees.

The NASDAQ OMX Clean Edge Global Wind Energy Index measures the performance of corporations involved in developing, distributing, installing, manufacturing, and using wind energy products. Components include both US companies and American Depository Receipts.

The ETF is passively managed, with an expense ratio of 0.75%.

As of August 2008, the ETF had the following sector breakdown:

Basic materials 5.59%
Consumer staples 1.09%
Energy 2.22%
Industrials 56.03%
Utilities 33.64%
Other 1.43%

The ETF has not paid dividends in the past.

As of August 2008, the PowerShares Global Wind Energy Portfolio ETF holds 32 stocks. Its holdings are listed below.

PowerShares Cleantech Portfolio ETF (PZD)

2008-08-04T13:13:00.011-04:00

The PowerShares Cleantech Portfolio ETF (PZD) started trading in late October 2006. It tracks the Cleantech Index, minus expenses and fees.

The Cleantech Index measures the performance of corporations deriving at least half of their operating profits or revenues from clean technologies. This includes companies involved in additives for making traditional fuels burn cleaner, biofuels, solar energy, and wind energy. Components include both US companies and American Depository Receipts.

The ETF is passively managed, with an expense ratio of 0.71%. The fund's most recent annual turnover rate was 23%.

As of August 2008, the ETF had the following sector breakdown:

Basic materials 6.37%
Consumer cyclical 1.12%
Health care 3.06%
Industrials 65.33%
Information technology 17.5%
Utilities 6.21%
Other 0.4%

The ETF has not paid dividends in the past.

As of August 2008, the PowerShares Cleantech Portfolio ETF holds 49 stocks. Its holdings are listed below.

First Trust NASDAQ Clean Edge US Liquid Series Index Fund ETF (QCLN)

2008-08-04T12:52:00.007-04:00

The First Trust NASDAQ Clean Edge US Liquid Series Index Fund ETF (QCLN) started trading in February 2007. As its name suggests, it tracks the NASDAQ Clean Edge US Liquid Series Index, minus expenses and fees.

The NASDAQ Clean Edge Index measures the performance of US corporations involved in clean energy development, distribution, installation, and manufacturing. This includes companies involved in bio-fuels, solar energy, and wind energy. The index is rebalanced quarterly.

The ETF is passively managed, with an expense ratio of 0.6%. The expense ratio is capped at 0.6% until mid May 2009, after which it may rise.

As of August 2008, the ETF had the following sector breakdown:

Basic materials 4.52%
Consumer goods 0.49%
Industrials 49.57%
Technology 41.77%
Utilities 3.65%

The ETF has not paid dividends in the past.

As of August 2008, QCLN holds 49 stocks. Its holdings are listed below.

First Trust ISE Global Wind Energy Index Fund (FAN)

2008-08-04T12:06:00.010-04:00

The First Trust ISE Global Wind Energy Index Fund (FAN) started trading in mid June 2008. It tracks the International Securities Exchange Global Wind Energy Index, minus expenses and fees.

The International Securities Exchange Global Wind Energy Index measures the performance of corporations involved in wind energy development, management of wind farms, production or distribution of electricity derived from wind power, or the design, manufacture, or distribution of equipment primarily for wind energy. The index is rebalanced and reconstituted twice a year. The index includes American Depository Receipts, European Depository Receipts, and Global Depository Receipts.

The ETF is passively managed, with an expense ratio of 0.6%. The expense ratio is capped at 0.6% until mid June 2010, after which it may rise.

The ETF has no history of dividend payments.

As of August 2008, the First Trust ISE Global Wind Energy Index Fund holds 67 stocks. Its holdings are listed below.

Claymore/MAC Global Solar Energy ETF (TAN)

2008-08-04T11:37:00.005-04:00

The Claymore/MAC Global Solar Energy ETF (TAN) started trading in mid April 2008. It tracks the MAC Global Solar Energy Index, minus expenses and fees. The ETF uses a replication approach in tracking the index, attempting to own all of the index's components.

The MAC Global Solar Energy Index measures the performance of corporations involved in supplying materials for or servicing solar equipment producers, derive at least one third of their revenues from solar energy finance, installation, and integration, or specialize in producing electricity from solar power. Component stocks must have market capitalizations of $250 million or over, and at least a $150 million monthly trading volume when the index is reconstituted. The index is reconstituted quarterly. The MAC Global Solar Energy Index includes both American Depository Receipts and Global Depository Receipts.

The ETF is passively managed, with an expense ratio of 0.65%. The expense ratio is capped at 0.65% until January 2011, after which it may rise.

The ETF has no history of dividend payments. Should there be distributions, they will be paid out annually.

As of August 2008, the Claymore/MAC Global Solar Energy ETF held all of the index's components. Its holdings are listed below.

ProShares UltraShort Financials ETF (SKF)

2008-08-03T17:03:00.003-04:00

The ProShares UltraShort Financials ETF (SKF) started trading in late January 2007. It tracks double the inverse of the Dow Jones U.S. Financials Index, minus expenses and fees. The ETF is supposed to go up twice as much as the index goes down, and down twice as much as the index goes up. The ETF's approach to tracking double the inverse of the index involves swap agreements and futures contracts. It does not short individual stocks.

The Dow Jones U.S. Financials Index, as its name suggests, tracks the performance of financial services companies in the US. As of August 2008, the index had 281component stocks. Their industry breakdown, as of July 2008 was the following:

Banks 33.95%
General financial 28.41%
Insurance 16.41%
Life insurance 7.19%
REITs 13.27%
Real estate services 0.77%

The index's holdings, as of August 2008 are as follows:

The ProShares UltraShort Financials ETF has an expense ratio of 0.95%.

The ETF pays quarterly dividends, in March, June, September, and December. Past distributions have been irregular and have ranged from $0.17 a share to $0.774 per share.

ProShares Short Financials ETF (SEF)

2008-08-03T16:12:00.005-04:00

The ProShares Short Financials ETF (SEF) started trading in mid June 2008. It tracks the inverse of the Dow Jones U.S. Financials Index, minus expenses and fees. The ETF is supposed to go up when the index goes down, and down when the index goes up. The ETF's approach to tracking the inverse of the index involves short selling swap agreements and futures contracts.

The Dow Jones U.S. Financials Index, as its name suggests, tracks the performance of financial services companies in the US. As of August 2008, the index had 281 component stocks. Their industry breakdown, as of July 2008 was the following:

Banks 33.95%
General financial 28.41%
Insurance 16.41%
Life insurance 7.19%
REITs 13.27%
Real estate services 0.77%

The index's holdings, as of August 2008 are as follows:

The ProShares Short Financials ETF has an expense ratio of 0.95%.

Note that since this is a new ETF, it may not perform as expected. Its average daily trading volume is just over $2.8 million.

Rydex S&P 500 Pure Growth ETF (RPG)

2008-07-26T15:23:00.009-04:00

The Rydex S&P 500 Pure Growth ETF (RPG) started trading in March 2006. It tracks the S&P 500/Citigroup Pure Growth Index, minus expenses and fees. The ETF uses a replication approach to track the index. It attempts to own all the index's components.

The S&P 500/Citigroup Growth Index selects stocks from the S&P 500 based on their 5-year earnings per share growth, 5-year sales per share growth, and 5-year internal growth. It rebalances annually.

As of late July 2008, the ETF had the following sector breakdown:

Consumer cyclical 17.94%
Energy 13.52%
Financials 8.53%
Health care 18.75%
Information technology 18.17%
Other (basic materials, consumer staples, utilities, cash) 23.09%

The ETF is passively managed, with an expense ratio of 0.35%. The fund's most recent annual turnover rate was 24%.

Although this is subject to change, the ETF pays a quarterly dividend in March, June, September and December. The dividend is irregular, and past distributions have ranged from $0.026238 a share to $0.083544 a share.

The Rydex S&P 500 Pure Growth ETF held 151 stocks and a small amount of cash as of late July 2008. Its holdings are listed below.

Market Vectors Agribusiness ETF (MOO)

2008-07-25T12:43:00.006-04:00

The Market Vectors Agribusiness ETF (MOO) started trading at the end of August 2007. It tracks the DAXglobal Agribusiness Index, minus expenses and fees. The ETF uses a replication approach in tracking the index, attempting to own all of the index's components.

The DAXglobal Agribusiness Index measures the performance of corporations involved in agriculture whose shares are traded domestically and abroad. The index is market cap weighted and its components are selected based on the following criteria:

They must be agribusinesses that have a monthly trading volume of at least 250,000 shares in the trailing six months, an average daily dollar volume of at least $1 million in each of the last two months as well as over the past six months, and a market cap of at least $150 million.

As of the end of June 2008, the ETF had the following industry breakdown:

Agriculture chemicals 45.3%
Agriculture equipment 17.3%
Agriproducts 31.7%
Bio fuel 1.7%
Livestock 4%

The ETF is passively managed, with an expense ratio of 0.65%. The expense ratio is capped at 0.65% until May 2009, after which it may rise. The fund's most recent annual turnover rate was 4%.

The ETF has not paid any dividends in the past. It is designed to limit distributions.

The Market Vectors Agribusiness ETF held 43 stocks, as of July 2008. Its holdings are listed below.

S&P 500 Growth Index Fund ETF (IVW)

2008-07-23T15:30:00.009-04:00

The S&P 500 Growth Index Fund ETF (IVW) started trading in late May 2000. It tracks the S&P 500/Citigroup Growth Index, minus expenses and fees. The ETF uses a sampling approach to track the index, and may at times hold stocks not in the index as well as contracts and cash equivalents.

The S&P 500/Citigroup Growth Index tracks those S&P 500 components that have the highest price/book ratios.

As of mid July 2008, the ETF had the following sector breakdown:

Basic Materials 3.12%
Consumer discretionary 7.6%
Consumer staples 12%
Energy 22.67%
Financials 5.82%
Health care 14.96%
Industrials 8.87%
Information Technology 24.17%
Telecom Services 0.08%
Utilities 0.65%

The ETF is passively managed, with an expense ratio of 0.18%. The fund's most recent annual turnover rate was 26%.

Although this is subject to change, the ETF pays a quarterly dividend in March, June, September and December. The dividend is irregular, and past distributions have ranged from $0.0236 a share to $0.5237 a share.

The S&P 500 Growth Index Fund held 307 stocks as of July 2008. Its holdings are listed below.