The U.S. ETF industry saw a major slowdown in ETF launches during the week ending Aug. 18 as the summer slump continued. Only six new ETFs launched, while issuers announced only one new closure.
Among the fund debuts were two new actively managed ETFs from Global X covering Brazil and India, respectively. YieldMax launched an option income strategy ETF that targets the stock of Coinbase, while newcomer Madison Investments rolled out an actively managed dividend equity fund.
There were also two new launches from Tema ETFs. The Tema Oncology ETF (CANC) tracks an index of 15-100 companies deriving at least half of their revenues from oncology, including through pharmaceuticals, diagnostics, medical devices and other products and services, according to the prospectus.
CANC has an expense ratio of 0.75% and lists on the Nasdaq stock exchange.
The Tema Global Royalties ETF (ROYA) focuses on companies that generate 80% or more of their revenue from royalty or intellectual property income. The underlying index primarily covers companies operating in the healthcare, materials, communication services and energy sectors. The fund has an expense ratio of 0.75% and lists on Cboe Global Markets.
Closures have been on a tear in 2023, unlike ETF launches. However,expert only one new ETF shutdown was announced during the week. The final fund in the NightShares lineup, the NightShares 500 1x/1.5x ETF (NSPL) will see its last day of trading on Aug. 31.
And while the closure of the Asian Growth Cubs ETF (CUBS) was previously announced, its last day of trading has been moved to Aug. 28 from Aug. 30.
Beyond ETF Launches & Shutdowns
During the week, the GraniteShares XOUT U.S. Large Cap ETF (XOUT) changed its name to the GraniteShares Nasdaq Select Disruptors ETF and its ticker to DRUP. It also changed its index from the XOUT U.S. Large Cap Index to the Nasdaq US Large Cap Select Disruptors Index.
Due to a reorganization, the Grizzle Growth ETF (GRZZ) will change sits ticker to DARP after the close of business on Aug. 25. It is unclear if anything else about the fund will change.
Finally, on Aug. 28, the ASYMmetric Smart S&P 500 ETF (ASPY) will change its index from the Asymshares ASYMmetric S&P 500 ETF to the ASYMmetric Smart 500 Index.
There were some interesting filings during the week, with three standing out in particular.
Valkyrie was a latecomer to the deluge of Ethereum futures ETFs that were put into registration a couple of weeks ago, filing for the Valkyrie Ethereum Strategy ETF.
And SP Funds, which has a lineup of sharia-compliant ETFs, filed for another ETF. The SP Funds Dow Jones Sharia Global Technology ETF (SPTE) will track an index that covers the GICS Information Technology Sectors, but it will also screen the companies in that sector to ensure that they are acceptable based on Islam’s sharia standards.
The Janus Henderson Securitized Income ETF will be actively managed and invest primarily in securitized debt instruments like asset backed securities, mortgage-backed securities, collateralized loan obligations and collateralized mortgage obligations.
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