Amid the flurry of new ETFs coming to market this week, it appears I missed the launch of First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) on Tuesday (11/17/09). This ETF focuses on stocks in the electric energy infrastructure and distribution grid subsector. The fund will typically invest in companies engaged in electric grid, metering equipment and devices, networks, energy storage and management, and enabling software used within the smart grid infrastructure.
The underlying index uses a modified capitalization weighting with “pure play” companies receiving an 80% allocation and “diversified” companies receiving just a 20% allocation. The expense ratio will be capped at 0.70% for two years.
The top sectors are currently Industrials 42.2%, Technology 15.1%, and Utilities 7.0%. Top holdings include SMA Solar Technology AG 12.1%, Schneider Electric S.A. 8.9%, ITC Holdings 7.1%, Quanta Services 7.0%, and NGK Insulators 6.9%. I could not find information on country breakdown.
Additional information can be found in the Smart Grid Investor Guide, ETF summary page, fact sheet pdf, and list of complete holdings.
Disclosure compliant with FTC 16 CFR Part 255 covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.