ETFs
A busy week to welcome 22 new ETFs
The U.S. ETF industry saw the launch of 22 new ETFs last week, the best number of launches in several months. Issuers launching funds include Capital Group, Direction, First trust, Invesco, NEOS, Neuberger Bermannewcomer Capital of night view, PGIM, Strive, TCW And YieldMax.
First Trust launched three more ETFs this week in addition to its new Economic Moat fund. These new funds included the ETF FT Vest US Equity Equal Weight Buffer – June (RSJN )which was the issuer’s first defined outcome ETF based on the Invesco S&P 500 Equal Weight ETF (RSP A-). First Trust also launched the FT Vest US Equity Buffer & Premium Income ETF – June (XIJN ) and the ETF FT Vest US Equity Max Buffer – June (JUNM).
XIJN invests in flexible exchange options (FLEX) that are linked to the performance of the SPDR S&P 500 Index Fund (TO SPY A) and short-term U.S. Treasury securities, according to the prospectus. The fund has no upside potential due to price appreciation, although it may experience downside potential. XIJN seeks to provide 7.36% annualized income before fees while protecting against the first 10% of losses in SPY’s price performance. The fund has an expense ratio of 0.85% and is listed on the Cboe BZX exchange.
JUNM, on the other hand, tracks the price performance of SPY up to a cap of 9.08% while protecting itself against 100% of losses over the one-year performance period. It has an expense ratio of 0.85% and is listed on the Cboe BZX exchange.
Beyond the flood of new ETFs
While the number of launches is perhaps the biggest news, there are other actions in the ETF space worth mentioning.
Direxion has announced the upcoming closure of three of its ETFs. The following funds will have their last trading day on July 19:
- ETF Direxion Hydrogen (HJEN B+)
- Actions Direxion Daily Global Clean Energy Bull 2X (Klné VS)
- Direxion Moonshot Innovators Exchange Traded Fund (ETF)MOON B-)
Also during the week, the Columbia Emerging Markets Consumer ETF (ECON VS) changed its name to Columbia Research Enhanced Emerging Economies ETF and its index, the Dow Jones Emerging Markets Consumer Titans Index, to Beta Advantage Research Enhanced Solactive Emerging Economies Index. At the same time, the FMC Excelsior Focus Equity ETF (FMCCX C+) changed its name to FM Focus Equity ETF.
THE ETF FT Vest International Equity Buffer – June (YJUN ) changed its name to FT Vest International Equity Moderate Buffer ETF effective July 1. The issuer converted all fund names in the series to include the word “Moderate.”
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