During an especially busy week, the ETF industry saw the launch of multiple ETFs and the completion of a major round of closures, not to mention some very interesting filings. BlackRock’s iShares arm roll out a fund focused on companies that are leaders in the transition to a low-carbon economy. Finnish pension fund Ilmarinen has invested more than $2 billion in the fund. And Goldman Sachs launched a cap-weighted global ex-US ETF.
There were several other debuts during the week. Franklin Templeton rolled out a multi-asset income fund on Thursday, and that same day saw the launch of the Running Oak Efficient Growth ETF (RUNN). The actively managed fund holds a portfolio of 50-75 stocks selected for their quality and with the intent of managing downside risk. RUNN lists on the Nasdaq stock exchange and has an expense ratio of 0.58%.
The LHA Risk-Managed Income ETF (RMIF) rolled out on Friday. The fund is actively managed and invests primarily in other ETFs across a wide range of categories within the fixed income space. Grimes & Co. serves as the subadvisor, managing the fund with a proprietary model that takes into account price and volatility trends, according to its prospectus. RMIF has an expense ratio of 1.27% and lists on the NYSE Arca.
Closures
Closures resembled a firehose this week with Barclays delisting 21 of its iPath ETNs on June 7. The affected products include the following:
- iPath Series B Bloomberg Cotton Subindex Total Return ETN (BAL)
- iPath Pure Beta Broad Commodity ETN (BCM)
- iPath Series B Bloomberg Livestock Subindex Total Return ETN (COW)
- iPath Series B Bloomberg Natural Gas Subindex Total Return ETN (GAZ)
- iPath S&P GSCI Total Return Index ETN (GSP)
- iPath Series B Bloomberg Agriculture Subindex Total Return ETN (JJA)
- iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC)
- iPath Series B Bloomberg Energy Subindex Total Return ETN (JJE)
- iPath Series B Bloomberg Grains Subindex Total Return ETN (JJG)
- iPath Series B Bloomberg Industrial Metals Subindex Total Return ETN (JJM)
- iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN)
- iPath Series B Bloomberg Precious Metals Subindex Total Return ETN (JJP)
- iPath Series B Bloomberg Softs Subindex Total Return ETN (JJS)
- iPath Series B Bloomberg Tin Subindex Total Return ETN (JJT)
- iPath Series B Bloomberg Aluminum Subindex Total Return ETN (JJU)
- iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO)
- iPath Bloomberg Lead Subindex Total Return ETN (LD)
- iPath Bloomberg Cocoa Subindex Total Return ETN (NIB)
- iPath Pure Beta Crude Oil ETN (OIL)
- iPath Series B Bloomberg Platinum Subindex Total Return ETN (PGM)
- iPath Series B Bloomberg Sugar Subindex Total Return ETN (SGG)
Additional launches were announced by First Trust during the week. The First Trust Developed International Equity Select ETF (RNDM) will see its last day of trading on June 20, while the First Trust BICK Index Fund (BICK) and the EquityCompass Risk Manager ETF (ERM) will cease to trade after the market close on July 14.
Another pair of funds offered through Tidal Inc. will also close. The Constrained Capital ESG Orphans ETF (ORFN) will see its last day of trading on July 24, while the Constrained Capital ESG Orphans Daily Inverse ETF (SRFN) will no longer trade after June 30.
Other Changes in ETFs
There were other changes that completed or were announced during the week. On Wednesday, 11 equal-weighted sector ETFs in Invesco’s lineup changed their tickers as follows:
- Invesco S&P 500 Equal Weight Communication Services ETF (EWCO), RSPC
- Invesco S&P 500 Equal Weight Real Estate ETF (EWRE), RSPR
- Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD), RSPD
- Invesco S&P 500 Equal Weight Industrials ETF (RGI), RSPN
- Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS), RSPS
- Invesco S&P 500 Equal Weight Materials ETF (RTM), RSPM
- Invesco S&P 500 Equal Weight Energy ETF (RYE), RSPG
- Invesco S&P 500 Equal Weight Financials ETF (RYF), RSPF
- Invesco S&P 500 Equal Weight Health Care ETF (RYH), RSPH
- Invesco S&P 500 Equal Weight Technology ETF (RYT), RSPT
- Invesco S&P 500 Equal Weight Utilities ETF (RYU), RSPU
First Trust will change its First Trust US Equity Dividend Select ETF (RNDV) to the First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) on or around August 24. The fund will also switch its index from the Nasdaq Riskalyze US Large Cap Select Dividend Index to the S&P 500 Sector-Neutral Dividend Aristocrats Index at the same time.
And on July 24, the Sound Equity Income ETF (DIVY) will change its name to the Sound Equity Dividend Income ETF.
Filings Highlights
Notable filings during the week included plans for three ETFs from Toroso’s Tidal Trust that will be managed by MSA Power Funds. The document outlines plans for three actively managed funds that will invest in companies “without falling afoul of US sanctions or compromising American values or national interests.”
The three funds include the following:
- CoreValues Alpha China Tech ETF
- CoreValues Alpha India Growth ETF
- CoreValues Alpha China A-Shares Tech ETF
iMGP Funds filed for the Polen Capital Global Growth ETF (PCGG), a global actively managed fund that selects its components largely based on earnings growth as well as ESG criteria. PCGG will hold a high-conviction portfolio of 25-40 stocks.
Harbor Capital is planning two new funds. The Harbor Long-Short Equity ETF will be managed by Disciplined Alpha and invest mainly in mid- and large-cap US. stocks via a long/short strategy. Meanwhile, the Harbor Small Cap Explorer ETF (QWST) will be actively managed by a team multiple subadvisors and target the small-cap segment of the U.S. market.
Tema filed for the Tema Asian Middle Class ETF. The actively managed fund will invest in emerging markets companies that primarily provide their productrs and services to Asia’s middle class. It can hold from 15 to 100 individual companies in its portfolio.
REX Shares plans to roll out the actively managed REX FANG Equity Premium Income ETF (FEPI). The fund will invest in eight key stocks associated with the “FAANG” concept: Apple (AAPL), Amazon (AMZN), Meta Platforms (META), Alphabet (GOOGL), Microsoft (MSFT), Netflix (NFLX), NVIDIA (NVDA) and Tesla (TSLA). It will also invest in seven technology stocks selected based on trading volume from several categories within the sector. The fund’s strategy includes writing covered calls on its holdings to generate income via options premiums, according to the prospectus.
Finally, last month Calamos Investments filed to launch a convertible securities ETF. The firm is known for its expertise in the sector. The actively managed Calamos Convertible High Delta ETF will use a quantitative approach.
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