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8 New ETFs of 2017 to Explode in 2018

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Over 270 ETFs were launched in 2017 and many are in the pipeline waiting for approval. But investors must be knowing that not all get to see the same success after months of trading. Some die an early death while some keep getting fuller with assets over time. Below we highlight a few new ETFs that may see smooth trading in 2018 and make a killing (read: 7 Successful New ETFs of 2017).

The AdvisorShares Vice ETF (ACT - Free Report)

The fund is actively managed and invests in securities of companies that derive at least 50% of their net revenues from tobacco & alcoholic beverages & companies that derive at least 50% of their net revenues from the marijuana & hemp industry.

All such industries have huge growth potential. The Zacks Industry Rank of Alcoholic beverage is in the top 36% and half of the fund goes to alcohol. The story is the same for marijuana. So, this $7.9-million fund, which went on board in mid-December, has high chances of outperformance ahead (read: Rush for Marijuana ETFs Getting Stronger).

Principal US Mega-Cap Multi-Factor ETF (USMC - Free Report)

The underlying index of the fund – the Nasdaq U.S. Mega Cap Select Leaders Index – uses a “quantitative model designed to identify equity securities of companies with the largest market capitalizations in the Nasdaq US 500 Large Cap Index, with higher weights given to securities that are less volatile.” Making a debut in October, the fund has already generated about $797 million in assets and has high chances of hitting $1 billion next year (read: 7 Successful New ETFs of 2017).

Entrepreneur 30 Fund (ENTR - Free Report)

The underlying index of the fund takes care of 30 U.S. companies with the highest market capitalization and composite scores based on six criteria — management, compensation, revenue, ownership, profitability and company statistics. Entering the market in November, the fund has scooped up about $53.7 million in assets within a short span.

IBD ETF Leaders ETF

Having entered the market about only 10 days ago, the fund gained about $26.8 million in assets. The underlying index of the fund looks to outperform the broader equity and fixed income markets. It has a fund of funds approach. Global X China Consumer ETF (CHIQ - Free Report) , ARK Innovation ETF (ARKK - Free Report) and Guggenheim Solar ETF (TAN - Free Report) are some of its top holdings.

KraneShares MSCI China Environment Index ETF (KGRN - Free Report)

China, the world's largest car market, intends to put an embargo on the manufacturing and sale of diesel and petrol cars and vans. Plus, owing to the Chinese government’s crackdown on pollution, state run Jiangxi Copper was asked to cut production lately. All such moves indicate that KGRN should see surge in assets in 2018. The fund has garnered about $6.3 million, having hit the market in October (read: Follow These ETFs as China's 19th National Congress Begins).

U.S. Tax Reform Fund

It is an actively managed exchange-traded fund that looks to attain its objective of capital appreciation by investing, both long and short positions, primarily in equity securities traded in the U.S. markets. Though the fund is light on assets, the passage of the tax bill should propel it higher ahead. This fund too hit the market in October (read: Tax Bill: What ETF Investors Need to Know).

Columbia Diversified Fixed Income Allocation ETF (DIAL - Free Report)

Columbia Diversified Fixed Income Allocation ETF follows the Beta Advantage Multi-Sector Bond Index. Having entered the market in October, the fund has amassed about $55.8 million in assets. U.S. high-yield corporate bonds account for about 30.2% of the fund while emerging markets sovereign debt (20%) and U.S. investment-grade corporate bonds (15%) take the next two spots. The 79-security fund charges 28 bps in fees.

ProShares Long Online/Short Stores ETF (CLIX - Free Report)

Though brick-and mortar retail sales put up a good show in the latest holiday season, the underlying trend is shifting toward online. This puts CLIX in focus. It entered the ETF universe in mid-November and has piled in about $15 million in assets.

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