The week ending March 8 saw a lot of activity in the ETF industry, with 17 new ETFs debuting and several closures. A range of ETFs also underwent or expect to enact material changes. Direxion, Sprott, Defiance, newcomer Cullen Capital Manaagement, Tidal and Simplify were among the firms debuting ETFs during the week.
Nuveen Debuts 1 Equity, 3 Fixed Income ETFs
Nuveen rolled out four new actively managed funds, with three targeting slices of the fixed income space and the fourth taking a sustainable approach to equities. All four funds list on the Nasdaq stock exchange.
The Nuveen Core Plus Bond ETF (NCPB) focuses on generating current income and invests in a range of types of fixed income securities. Generally, its managers will invest 65% of the portfolio in investment-grade debt securities drawn from the top four credit tiers. The remaining 35% will be invested in high-yield debt securities. It has an expense ratio of 0.30%.
The Nuveen Preferred and Income ETF (NPFI) aims to provide current income and total return to its shareholders. It does this by investing in a wide spectrum of preferred securities. The fund has an expense ratio of 0.55%.
The Nuveen Ultra Short Income ETF (NUSB) focuses on the preservation of investor capital. It primarily invests in investment-grade debt of different types with the intention of maintaining an average duration of no more than one year. It has an expense ratio of 0.17%.
The Nuveen Sustainable Core ETF (NSCR) is the only one of the four ETFs to focus on equities. It targets companies that align with the themes energy transition and innovation; inclusive growth and strong governance, according to its prospectus. NSCR invests primarily in large-cap U.S. companies and has an expense ratio of 0.45%.
Monarch Launches 4 New ETFs
Monarch Funds, which launched its first ETFs in March 2021 more than doubled its lineup with the addition of four new ETFs listing on the Cboe BZX Exchange.
The Monarch Dividend Plus Index ETF (MDPL) tracks an equal weighted index of domestic stocks selected from the Russell 1000 index that are paying out dividends and expected to increase those payments. The underlying index is reconstituted on a weekly basis, according to its prospectus. The fund charges an expense ratio of 1.25%.
The index underlying the Monarch Select Subsector Index ETF (MSSS) rotates its exposure to sectors and subsectors based on the economic cycle to hold other ETFs that are expected to do well given their historical performance. The fund has an expense ratio of 1.61%.
The Monarch Volume Factor Dividend Tree Index ETF (MVFD) invests in U.S. equities from the Russell 3000, selecting 40 stocks based on their cash flow and ability to pay dividends, according to the prospectus. However, the fund can rotate into five short-term Treasury ETFs if cash flows trend into negative territory. The methodology also takes into account volume and price. MVFD has an expense ratio of 1.25%.
Finally, the Monarch Volume Factor Global Unconstrained Index ETF (MVFG) invests in 25 other mainly global ETFs that exihibit positive cash flow. It switches to Treasury ETF exposures when cash flow trends turn negative. Leveraged and inverse ETFs are excluded form consideration. The fund has an expense ratio of 1.59%.
Closures
Two ETFs, the Defiance Pure Electric Vehicle ETF (EVXX) and the Simplify Tail Risk Strategy ETF (CYA), ceased to trade during the week. However, several new closures were also announced.
The VanEck Future of Food ETF (YUMY) will no longer trade after the market close on April 2, while the IQ Ultra Short Duration ETF (ULTR) will no longer trade after the market close on April 22. And Global X has postponed the closure of the Global X MSCI Next Emerging & Frontier ETF (EMFM) until April 12, moving the date from March 15.
Other Changes
Several funds underwent material changes during the week. Among them were funds from United States Commodity Funds, Monarch Funds, First Trust and Strive Asset Management.
The First Trust Large Cap US Equity Select ETF (RNLC) changed its name and ticker to the First Trust Bloomberg Shareholder Yield ETF (SHRY) and its index from the Nasdaq Riskalyze US Large Cap Index to the Bloomberg Shareholder Yield Index.
The Clough Long/Short Equity ETF (CBLS) changed its name to the Clough Hedged Equity ETF, while the USCF Gold Strategy Plus Income Fund (GLDX) changed its ticker to USG.
Strive Asset Management change the index for the Strive U.S. Semiconductor ETF (SHOC) from the Solactive United States Semiconductors 30 Capped Index to the Bloomberg US Listed Semiconductors Select Index.
Finally, the, as of March 15, the ProShares Short Bitcoin Strategy ETF (BITI) will change its index from the S&P CME Bitcoin Futures Index to the Bloomberg Galaxy Bitcoin Index. At the same time the ProShares Short Ether Strategy ETF (SETH) will change its index from the S&P CME Ether Futures Index to the Bloomberg Galaxy Ethereum Index.
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