New ETF tracks Wal-Mart business partners

Posted Dec 5th 2007 1:00PM by Brian White
Filed under: Other Issues, Wal-Mart (WMT), Kellogg Co (K), Mattel, Inc (MAT)

If you've ever wanted to own a mutual fund or exchange traded fund that invested primarily in companies which do a significant amount of business with the world's largest retailer, your day has come.

A new investment company named FocusShares is developing funds based on indexes created by International Securities Exchange Holdings, Inc. (NYSE: ISE). One of the new ETFs, called the FocusShares ISE-REVERE Wal-Mart (NYSE: WSI), tracks companies that get a large amount of their business from Wal-Mart Stores, Inc. (NYSE: WMT), the world's largest retailer.

The new fund includes over 30 well-known names as Del Monte Foods (NYSE: DLM) DLM, Kellogg Co. (NYSE: K) and Mattel, Inc. (NYSE: MAT). It also contains many firms that are significant Wal-Mart suppliers even though they aren't huge blue chips.

Want some numbers? Here you go: Del-Monte gets 31% of its business from Wal-Mart, Kellogg gets 18% and Mattel almost 20%. That's putting some awfully large eggs in one basket, but you can own them now for a lowly 0.35% to 0.6% in fees if you'd like. The fund opened November 30 for trading.

Tags: dlm, ETF, FocusShares, International Securities Exchange, InternationalSecuritiesExchange, ise, k, Large-cap ETF, Large-capEtf, mat, Wal-Mart, Wal-Mart exchange-trded fund, Wal-martExchange-trdedFund, WMT, wsi