The week ending April 12, 2024 saw the launch of a total of 10 new ETFs, including three funds from Fidelity that implement options strategies. There were also launches from Westwood Holdings, Obra Capital, and Strive Asset Management, among other issuers.
The three actively managed Fidelity funds provide liquid alternatives approaches that rely on options for their execution. The new products include the Fidelity Yield Enhanced Equity ETF (FYEE), the Fidelity Hedged Equity ETF (FHEQ), and the Fidelity Dynamic Buffered Equity ETF (FBUF). Although FYEE charges a net expense ratio of 0.28%, FHEQ and FBUF both have expense ratios of 0.48%. All three list on the Cboe BZX Exchange.
FYEE is a covered call fund that aims to provide investors with income in the form of distribution yield. It comes with an upside cap on the performance of its equity portfolio. Meanwhile, FHEQ looks to protect its shareholders from plunges in the market while not giving up too much upside. It buys put options to achieve its goals. Finally, FBUF seeks to protect against downside performance while giving up some upside performance. It engages in both put buying and call writing to execute its strategy.
More New ETFs
Newcomer PT Asset Management rolled out an actively managed short-term bond ETF that it manages using its in-house investment methodology, Shape Management. The Performance Trust Short Term Bond ETF (STBF) mainly invests in investment-grade bonds selected from across the fixed income asset class. It looks to maintain an average duration for its portfolio that tops out at four years.
The fund lists on the Cboe BZX Exchange and has an expense ratio of 0.66%.
The StockSnips AI-Powered Sentiment US All Cap ETF (NEWZ) relies on artificial intelligence to generate its “News Media Sentiment Signal” to identify companies that are likely to outperform because of favorable investor opinions. The fund has an expense ratio of 0.65% and lists on the Nasdaq stock market.
And Carbon Collective Investments debuted its second ETF, the Carbon Collective Short Duration Green Bond ETF (CCSB). The actively managed fund mainly holds a portfolio of investment-grade green bonds from corporate issuers. The prospectus notes that while up to 20% of the portfolio can represent bonds that are not classified as green, the methodology requires that the companies issuing those bonds primarily offer services and products that qualify as green or sustainable. CCSB has an expense ratio of 0.50% and lists on the Nasdaq stock market.
Closures
Closure activity was muted during the week. Both the AGF Global Infrastructure ETF (GLIF) and the iMGP RBA Responsible Global Allocation ETF (IRBA) ceased to trade after the market close on Friday.
Only one new closure was announced during the period. The Carbon Strategy ETF (KARB), which launched in September 2022, will no longer trade after May 3.
Other Changes
Several ETFs underwent or announced material changes during the week. The AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) changed its name to the Bahl & Gaynor Small/Mid Cap Income Growth ETF. And the Strive U.S. Energy ETF (DRLL) changed its index from the Solactive United States Energy Regulated Capped Index to the Bloomberg US Energy Select Index.
Looking ahead, the R3 Global Dividend Growth ETF (GDVD) will change its name to the Copper Place Global Dividend Growth ETF as of April 18. Meanwhile, the Astoria US Quality Kings ETF (ROE) will change its name to the Astoria US Equal Weight Quality Kings ETF.
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