The first full week of trading in 2024 was a momentous one, with the debut of 10 physical bitcoin ETFs, the first of their kind. WisdomTree; Grayscale; Bitwise Asset Management; ARK Investment Management and 21Shares; Invesco and Galaxy, Fidelity Investments, Franklin Templeton, BlackRock, VanEck, and Valkyrie all unveiled new ETFs tracking spot bitcoin performance on Thursday.
However, those weren’t the only new ETFs during the week, with additional funds introduced by Matthews Asia, Vest and the T-REX partnership between REX Shares and Tuttle Capital, as well as by IDX and Langar.
Beyond Bitcoin ETFs
The two Matthews Asia funds are actively managed and primarily invest in small- and midcap stocks in their targeted markets. The Matthews China Discovery Active ETF (MCHS) and the Matthews Emerging Markets Discovery Active ETF (MEMS) both have expense ratios of 0.89% and list on the Nasdaq stock exchange. The funds’ strategy focuses on companies whose fundamentals indicate they are likely to see sustainable growth, according to the prospectus for each.
Meanwhile, the T-REX brand debuted three 2X single-stock ETFs offering leveraged exposure to the performance of the stocks of Apple (AAPL), Alphabet (GOOG) and Microsoft (MSFT). The three funds all list on the Cboe BZX Exchange with expense ratios of 1.05%. The funds include the following:
- T-Rex 2X Long Apple Daily Target ETF (AAPX)
- T-Rex 2X Long Alphabet Daily Target ETF (GOOX)
- T-Rex 2X Long Microsoft Daily Target ETF (MSFX)
Additional Launches
Vest, which recently changed its name from Cboe Vest, launched the Vest 2 Year Interest Rate Hedge ETF (HYKE). The actively managed fund will generally rise when the two-year rate increases, though it is also expected to experience declines when the rate falls. HYKE invests in a variety of derivatives and in ETFs linked to U.S. Treasury bills. It looks to prevent any losses greater than 20% within a single quarter and provide upside performance up to a cap that varies from quarter to quarter within a range between 5% and 35%. HYKE lists on the Cboe BZX Exchange and has an expense ratio of 0.85%.
IDXShares rolled out its second fund, the IDX Dynamic Fixed Income ETF (DYFI). The new ETF is actively managed and invests mainly in other ETFs tracking segments of the fixed income markets. It uses a quantitative methodology to update the portfolio weekly and allocate across sectors, selecting five to 15 funds based on a range of criteria. DYFI weights holdings based on their volatility for purposes of risk management. It has an expense ratio of 1.33% and lists on the Nasdaq stock exchange.
Closures
A total of three funds saw their last day of trading during the week. They include the following:
- Goldman Sachs ActiveBeta Paris-Aligned Climate US Large Cap Equity ETF (GPAL)
- V-Shares US Leadership Diversity ETF (VDNI)
- V-Shares MSCI World ESG Materiality and Carbon Transition ETF (VMAT)
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