ETF TMI: Latest ETF Launches, Transitions & Jumps

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

New ETF Launches: IGRO & FAAR

Bats Exchange on Thursday launched the iShares International Dividend Growth ETF (BATS: IGRO).

IGRO seeks to track the investment results of the Morningstar Global ex-US Dividend Growth Index. iShares, which was the first issuer to list products on Bats, now has 41 ETFs listed on Bats’ U.S. market.

Also on Thursday, Nasdaq launched the First Trust Alternative Absolute Return Strategy ETF (Nasdaq: FAAR).

FAAR is actively managed and seeks to provide investors with long-term total return by investing primarily in exchange-listed commodity futures contracts through a wholly-owned subsidiary of the fund. The fund’s investment process involves taking long and short positions in commodity futures contracts through its subsidiary.

Guggenheim Transitions Spin-Off and Timber ETFs to New Indices

Effective today, Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, will change the underlying indices for Guggenheim Spin-Off ETF (CSD) and Guggenheim Timber ETF (CUT). The name of each ETF also will be changed to reflect its new underlying index. The ticker symbol of each ETF will remain the same.

The S&P Index is a rule-based index comprised of, as of February 29, 2016, approximately 58 securities of U.S. companies that have recently been spun-off from larger corporations and meet market capitalization requirements. Any eligible spin-offs occurring at least seven business days prior to the rebalancing date are included in the index at the monthly rebalancing.

The MSCI Index is a rules-based index comprised of, as of February 29, 2016, approximately 90 securities of companies in developed and emerging markets that own and/or manage forests and timberlands and produce wood-based products.

Fidelity Plans to Jump Into The Smart Beta ETF Market

Written by Todd Rosenbluth, Director of ETF & Mutual Fund Research, S&P Global Market Intelligence

Non-market-cap weighted smart-beta ETFs have been gaining traction with investors in 2016, led by iShares Edge MSCI USA Minimum Volatility (USMV) and iShares Edge MSCI EAFE Minimum Volatility (EFAV). These two ETFs have gathered $5.24 billion and $2.36 billion in new assets year to date through May 19, according to data, and are among the 10 most popular ETFs to buy this year. In addition, with bonds providing limited income, investors have gravitated toward dividend ETFs. PowerShares S&P 500 High Dividend Low Volatility (SPHD), offered by Invesco, pulled in $985 million of fresh money.

Related: Smart Beta ETF Industry Gets Vote of Confidence from Central Bank