ETF Trends
ETF Trends

Got a case of TMI (Too Much Information)? ETF Trends takes a condensed look at latest ETF launches and happenings…

WisdomTree Launches Fundamental U.S. Corporate Bond ETF Suite

WisdomTree announced the launch of four U.S. Corporate Bond ETFs on the BATS Exchange on Wednesday.

The four new ETFs seek to offer an intuitive alternative to market cap-weighted fixed income:

  • WisdomTree Fundamental U.S. Corporate Bond Fund (BATS: WFIG)
  • WisdomTree Fundamental U.S. Short-Term Corporate Bond Fund (BATS: SFIG)
  • WisdomTree Fundamental U.S. High Yield Corporate Bond Fund (BATS: WFHY)
  • WisdomTree Fundamental U.S. Short-Term High Yield Corporate Bond Fund (BATS: SFHY)

WFIG and SFIG seek to provide investors with the potential to capture the performance of selected issuers in the U.S. investment-grade corporate bond market—they each have a net expense ratio of 0.18%1 .

WFHY and SFHY seek to provide investors with the potential to capture the performance of selected issuers in the U.S. high yield corporate bond market—they each have a net expense ratio of 0.38%.

For WFIG and SFIG focused on U.S. investment-grade corporate bonds, WisdomTree has identified deteriorating cash flows, rising leverage and weakening profitability compared to peers as effective markers for potential credit concerns. WisdomTree believes eliminating these issuers can generate a considerable improvement in the strategy’s downside risk protection.

For WFHY and SFHY focused on U.S. high-yield corporate bonds, the presence of negative cash flows over several years has provided a warning signal for speculative credits. The strategies focus on issuers exhibiting more favorable cash flow characteristics to mitigate downside risk and significantly reduce overall volatility.

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Global X Launches S&P 500 Catholic Values ETF ‘CATH’

Global X Funds launched on Tuesday the Global X S&P 500 Catholic Values Index ETF (Nasdaq: CATH).

CATH is designed to include the companies within the S&P 500 whose business practices adhere to the Socially Responsible Investment Guidelines as outlined by the United States Conference of Catholic Bishops (US CCB) and exclude those that do not. Given CATH’s alignment with the S&P 500, it is intended to be used by investors for their US Large Cap exposure.

Jim Glownia, CFA, Regional Director at Global X, said its company has the unique ability to help advisors and other investment professionals meet their clients’ investment needs.

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