As we head toward summer’s end, ETF launches remain muted if this week is anything to go by, with only nine new funds debuting, a slight uptick from the week ended July 28. Perhaps most notably, JPMorgan rolled out another two actively managed ETFs on Monday that were converted from mutual funds. There were additional launches from First Trust and AllianzIM as well as newcomers DGA and Academy.
The JPMorgan Equity Focus ETF (JPEF) and the JPMorgan Limited Duration Bond ETF (JPLD) both converted to ETF wrappers from mutual funds and began trading on Monday. JPEF, which had $856 million in assets as of Wednesday, invests in a concentrated portfolio of U.S. stocks. It has an expense ratio of 0.50%.
JPLD has nearly $825 million in assets and invests in mortgage-related debt and asset-backed securities. It has an expense ratio of 0.24%. Both funds list on Cboe Global Markets.
Tuesday saw the debut of the Astoria US Quality Kings ETF (ROE). The actively managed fund targets companies that exhibit strong quality and value characteristics while paying high dividends. ROE has an expense ratio of 0.49% and lists on the Nasdaq stock market.
Closures
Despite the number of ETF launches being nothing to write home about, closures remained steady. Four funds closed during the week, and different issuers announced the shutdowns of another XX in total.
Two of the three NightShares ETFs ceased to trade after the market close on Monday. The NightShares 2000 ETF (NIWM) and the NightShares 500 ETF (NSPY) both aimed to deliver the returns of the overnight performance of the Russell 2000 and the S&P 500 indexes.
Thursday was the last day of trading for the 2ndVote Society Defended ETF (EGIS) and the 2ndVote Life Neutral Plus ETF (LYFE). The funds were mainly focused on companies supporting the second amendment and the anti-abortion cause, respectively.
Van Eck continues to liquidate the VanEck Russia ETF (RSX) and the VanEck Russia Small-Cap ETF (RSXJ) which have not traded since March 4, 2022. The liquidation could continue through the end of this year.
Several more ETF closures were announced during the week. The Asian Growth Cubs ETF (CUBS) will close to trading after the market close on Aug. 30. And the Principal Millennial Global Growth ETF (GENY) will no longer trade after the market close on Oct. 13, while the BNY Mellon Short Duration Corporate Bond ETF (BKSB) will have its last day of trading on Sept. 6.
The entire FormulaFolios ETF family will cease to trade after the market close on Oct. 6. The closing funds include the following:
- FormulaFolios Hedged Growth ETF (FFHG)
- FormulaFolios Smart Growth ETF (FFSG)
- FormulaFolios Tactical Growth ETF (FFTG)
- FormulaFolios Tactical Income ETF (FFTI)
Other Changes
A number of other major changes to existing ETFs are in the works for the fourth quarter. The most dramatic is the overhaul of the First Trust US Equity Dividend Select ETF (RNDV). On Oct. 3, the fund will change its name to the First Trust S&P 500 Diversified Dividend Aristocrats ETF and its ticker to KNGZ. It will also adopt the S&P 500 Sector-Neutral Dividend Aristocrats Index as its benchmark, replacing the Nasdaq Riskalyze US Large Cap Select Dividend Index.
Just a day prior to that, the Roundhill Sports Betting & iGaming ETF (BETZ) will change its index from the Roundhill Sports Betting & iGaming Index to the Morningstar Sports Betting & iGaming Select Index.
And as of Nov. 15, five BNY Mellon ETFs will change their indexes as follows:
- The BNY Mellon Emerging Markets Equity ETF (BKEM) will switch out the Morningstar Emerging Markets Large Cap Index to adopt the Solactive GBS Emerging Markets Large & Mid Cap USD Index.
- The BNY Mellon International Equity ETF (BKIE) will switch out the Morningstar Developed Markets ex-US Large Cap Index to adopt the Solactive GBS Developed Markets ex United States Large & Mid Cap USD Index.
- The BNY Mellon US Large Cap Core Equity ETF (BKLC) will switch out the Morningstar US Large Cap Index to adopt the Solactive GBS United States 500 Index.
- The BNY Mellon US Mid Cap Core Equity ETF (BKMC) will switch out the Morningstar US Mid Cap Index to adopt the Solactive GBS United States 400 Index.
- The BNY Mellon US Small Cap Core Equity ETF (BKSE) will switch out the Morningstar US Small Cap Index to adopt the Solactive GBS United States 600 Index.
Finally, as of Aug. 1, the Franklin FTSE Europe Hedged ETF (FLEH) changed its name to the Franklin FTSE Eurozone ETF and its ticker to FLEU. It also changed its index from the FTSE Developed Europe RIC Capped Hedged to USD Index to the FTSE Developed Eurozone Index.
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