Additionally, the HIGHLAND EQUITY HEDGE TECHNOLOGY ETF focuses on hedge fund picks of tech sector stocks while the HIGHLAND EQUITY HEDGE HEALTHCARE ETF tracks hedge fund picks of healthcare, biotech and pharmaceutical companies.
“We’re pleased to be announcing the registration of these new funds and to expand our ETF offerings,” Ethan Powell, Highland’s Chief Product Strategist, said in the press release. “This important step in launching our new suite of ETFs shows Highland’s dedication and commitment to the ETF space and our consistent drive to provide compelling and differentiated strategies to the investing public.”
The company currently offers one U.S.-listed ETF, the Highland/iBoxx Senior Loan ETF (NYSEArca: SNLN), which tracks the Markit iBoxx Liquid Leveraged Loan Index. The ETF tracks senior floating-rate bank loans. Due to their floating rate component, bank loans are seen as an attractive alternative to traditional high-yield corporate bonds in a rising rate environment. Bank loan securities allow their interest rate to shift, or float, along with the rest of the market, whereas a fixed interest rate stays constant until maturity. [Bank Loan ETFs: The Effects of an Illiquid Underlying Market]
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.