New ETFs

From time to time we like to cover what may be considered obscure, if not completely unrecognized ETPs, many of which are relatively new to the marketplace or simply follow a strategy that the public has not yet embraced.

VLU (SPDR S&P 1500 Value Tilt, Expense Ratio 0.35%) debuted in October of last year, and has very little going on in terms of daily volume or asset flows (475 shares traded on an average daily basis with $7 million in assets under management).

Structured as an “all-cap” product, VLU over-weights stocks in the S&P 1500 Index that have relatively low valuations while under-weighting those in the index with relatively high valuations.

Performance since inception, although it is extremely hard to follow this ETF on a point and figure if not a simple candlestick chart, has been encouraging, although one will note that sometimes the ETF will not trade for days on end at times.

A second ETF in the “S&P 1500” all category that was recently re-branded in terms of symbol and name, is ITOT (iShares Core S&P Total U.S. Stock Market, Expense Ratio 0.07%). ITOT as a fund has been around since 2004, and as the name S&P 1500 implies, the index includes all equity components of the S&P 500 (Large), S&P 400 (Mid-Cap), and S&P 600 (Small-Cap) indices.

ITOT has seen a recent pick-up in interest and has a healthy $774 million in assets under management currently, and averages about 115,000 shares traded daily.