Although the week’s ETF news was dominated by ARK and 21Shares teaming up to launch five cryptocurrency-related ETFs, there were additional new ETFs from other firms, including Simplify, newcomer GMO, Amplify, SoFi, DWS, and Virtus.
ARK & 21Shares Partner on New ETFs
On Tuesday and Wednesday, ARK and 21 Shares rolled out a total of five actively managed ETFs targeting cryptocurrency futures or crypto-related equities. Those funds and their expense ratios are as follows:
- ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA), 0.70%
- ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), 0.70%
- ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), 0.93%
- ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD), 0.90%
- ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), 1.00%
ARKA and ARKZ invest in futures contracts on bitcoin and Ethereum, respectively. Meanwhile ARKC shifts between cash equivalents and bitcoin futures depending on whether bitcoin’s expected trend is bearish or bullish based on on-chain transaction data.
ARKD primarily invest in the equities of companies involved in the blockchain and digital economy industries and can allocate assets to bitcoin futures based on qualitative and quantitative data, according to its prospectus. ARKY allocates its assets between bitcoin and Ethereum futures based on a range of criteria and factors.
All five funds list on Cboe Global Markets.
During the week, Goose Hollow debuted the Goose Hollow Multi-Strategy Income ETF (GHMS). The actively managed fund allocates its assets among ETFs covering domestic and foreign corporate debt; domestic and foreign government debt; and agency or mortgage-backed debt, the prospectus says. GHMS lists on Cboe Global Markets and has an expense ratio of 1.20%.
Finally, the IDX Dynamic Innovation ETF (DYNI) is, like GHMS, an ETF-of-ETFs. It allocates its assets among ETFs that capture disruptive innovation trends based on a quantitative approach. The methodology takes into account the ETFs’ momentum and volatility for purposes of portfolio selection and weightings. It has an expense ratio of 1.05% and lists on the Nasdaq stock market.
There were also a number of completed and announced closures during the week.
Both the ETC Gavekal Asia Pacific Government Bond ETF (AGOV) and the Cabana Target Drawdown 5 ETF (TDSA) saw their last day of trading on Wednesday. Similarly, the Clouty Tune ETF (TUNE), which focused on the entertainment industry, ceased to trade about six months from its inception.
Another five impending closures were also announced. Those funds and their last days of trading are as follows:
- SPDR S&P Internet ETF (XWEB), January 2, 2024
- Kelly Hotel & Lodging Sector ETF (HOTL), November 30
- Kelly Residential & Apartment Real Estate ETF (RESI), November 30
- Kelly CRISPR & Gene Editing Technology ETF (XDNA), November 30
- A.D. ETF (BAD), November 28
Five BNY Mellon ETFs changed their underlying benchmarks from Morningstar indexes to Solactive indexes. during the week. Those changes are as follows:
- The BNY Mellon Emerging Markets Equity ETF (BKEM) changed its index from the Morningstar Emerging Markets Large Cap Index to the Solactive GBS Emerging Markets Large & Mid Cap USD Index.
- The BNY Mellon International Equity ETF (BKIE) changed its index from the Morningstar Developed Markets ex-US Large Cap Index to the Solactive GBS Developed Markets ex United States Large & Mid Cap USD Index.
- The BNY Mellon US Large Cap Core Equity ETF (BKLC) changed its index from the Morningstar US Large Cap Index to the Solactive GBS United States 500 Index.
- The BNY Mellon US Mid Cap Core Equity ETF (BKMC) changed its index from the Morningstar US Mid Cap Index to the Solactive GBS United States 400 Index.
- The BNY Mellon US Small Cap Core Equity ETF (BKSE) changed its index from the Morningstar US Small Cap Index to Solactive GBS United States 600 Index.
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