The week ended May 24, 2024 saw the rollout of 17 new ETFs, including six defined outcome funds. The total count was the highest it’s been in several weeks, with launches slowing notably in the weeks around the Easter and Passover holidays.
The new ETFs that debuted during the week included launches from Amplify, iShares, State Street Global Advisors and YieldMax as well as newcomers Genter Capital and Otter Creek.
6 Defined Outcome ETFs
Several of the funds launching during the week were defined outcome, or buffer, ETFs that list on the Cboe BXZ Exchange. These include four new funds from PGIM, which appears to be focused on rolling out its entire suite of buffer ETFs in just a few months. It launched both the November and December funds for its “Buffer 12” and “Buffer 20” lineups within a few days of each other. The funds both track the price performance of the SPDR S&P 500 Index ETF (SPY) while protecting against downside performance up to 12% and 20%, respectively, before expenses.
The PGIM US Large-Cap Buffer 12 ETF – November (NOVP) and PGIM US Large-Cap Buffer 20 ETF – November (PBNV) both reset after the end of their initial outcome periods on ) October 31. Meanwhile, the PGIM US Large-Cap Buffer 12 ETF – December (DECP) and PGIM US Large-Cap Buffer 20 ETF – December (PBDE) reset after the end of their respective initial outcome periods on November 29.
NOVP started with a pre-expense cap of 6.43%, while PBNV’s cap was 5.53%. DECP had a starting cap of 7.66%, and PBDE’s was 6.46%. All four funds have expense ratios of 0.50%.
The FT Vest brand further added to its own buffer lineup with the debuts of the FT Vest Nasdaq-100 Moderate Buffer ETF – May (QMMY) and the FT Vest U.S. Equity Enhance & Moderate Buffer ETF – May (XMAY). The former offers exposure to the price performance of the Invesco QQQ Trust (QQQ) up to a pre-expense cap of 15.93%, with a downside buffer of 15%. The latter tracks the price performance of SPY, with a pre-expense cap of 10.87%, also with a downside buffer of 15%.
QMMY has an expense ratio of 0.90%, and XMAY has an expense ratio of 0.85%.
Additional New ETFs
The four launches from iShares during the week involved its iBonds family of fixed income ETFs, two of which list on the Cboe BZX Exchange. The iShares iBonds 2031 Term High Yield and Income ETF (IBHK) tracks an index of mostly junk bonds but also bonds rated BBB that all mature between January 1, 2031, and December 15, 2031. It has an expense ratio of 0.35%.
The iShares iBonds Dec 2030 Term Muni Bond ETF (IBMS) tracks an index of investment-grade municipal bonds maturing by Dec. 2, 2030.
Finally, Roundhill launched the actively managed Roundhill GLP-1 & Weight Loss ETF (OZEM), which will compete directly with Amplify’s launch of THNR on the same day. The fund invests in companies that offer GLP-1 drugs and other weight loss medications that have been approved by the FDA or that are still in clinical trials. Companies based outside the U.S. are subject to the testing and approvals processes implemented by their domestic regulatory agency. The fund has an expense ratio of 0.59% and lists on the Nasdaq stock exchange.
Closures
Closures continued to march along steadily, with four ETFs ceasing to trade during the week. Those funds are as follows:
- JPMorgan Alerian MLP Index ETN due on May 24, 2024 (AMJ)
- Capital Link Global Fintech Leaders ETF (KOIN)
- Defiance Israel Fixed Income ETF (CHAI)
- Xtrackers S&P SmallCap 600 ESG ETF (SMLE)
However, it should be noted that AMJ’s closure is not the result of a decision to shutter the ETN. Rather, the product’s closure is the result of reaching its maturity date.
Teucrium also announced during the week that it would be closing the Teucrium AiLA Long-Short Base Metalsteucrium Strategy ETF (OAIB), with the fund’s liquidation set for June 6. The fund has assets under management of just $3 million and has been trading a little more than a year.
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