ETF Trends
ETF Trends

The exchange traded fund universe has steadily expanded with many new additions and strategies this year.

There are now 1,961 U.S.-listed exchange traded products, which include both exchange traded funds and exchange traded notes, with a little over $2.5 trillion in assets under management.

The most popular new ETF options available to investors of 2016 include some that track leveraged high-yield strategies, a dynamically hedged international equity position, another that screens companies for gender equality in the evolving age and a forward momentum investment style.

The two most popular ETP strategies of 2016 include two ETNs that specifically focus on high-yield generation for income-minded investors. The UBS ETRACS FI Enhanced Global High Yield ETN (NYSEArca: FIHD), which began trading in February 22, has accumulated $525.7 million in assets under management and UBS ETRACS FI Enhanced Europe 50 ETN (NYSEArca: FIEE), which started trading in February 12, has $418.6 million in assets.

FIHD takes a two times leveraged long exposure to the performance of the MSCI World High Dividend Yield USD Gross Total Return Index, which is designed to reflect the performance of the parent MSCI World Index with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. Unlike other leveraged ETPs that takes a daily leveraged performance of the underlying index, FIHD takes a quarterly compounded performance.

Additionally, FIEE follows the two times leveraged long exposure of the STOXX Europe 50 USD Index, Europe’s leading blue-chip index that covers 50 stocks across 17 European countries. The ETN also takes the quarterly compounded performance of the index.

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