ETFs
US ETF Launch May 16-23, 2024
10 new ETF offerings launched for the week, each with a distinct value proposition for investors. Below are the respective launches of each asset manager.
Peerless Wealth has launched the Peerless Option Income Wheel ETF (ticker: WEEL), an actively managed solution that seeks to provide investors with current income. The fund’s strategy consists of two main elements: on the one hand, investing in a range of sector-specific ETFs and, in some cases, in individual securities, and on the other hand, implementing a “strategy wheel of options”. The options wheel strategy focuses on writing options on the fund’s holdings in sector ETFs and individual securities. By systematically entering positions below current market levels via the sale of put options, the fund aims to reduce risk compared to directly owning the sector while capitalizing on option premiums to enhance earnings from its sectoral ETF investments.
Virtus Investment Partners has launched the Virtus AlphaSimplex Managed Futures ETF (ticker: ASMF), an actively managed solution that aims to provide capital appreciation consistent with the risk/return characteristics of a basket of the world’s largest Managed Futures funds, as measured by the SG CTA Index. The ETF takes a diversified approach to identifying price trends by combining index replication techniques with information from AlphaSimplex’s own trend-following models. It takes positions in highly liquid futures contracts on 20 different assets in the global stock, bond, currency and commodity markets.
Collaborative Fund Advisors has launched the Anydrus Advantage ETF (ticker: NDOW). Sub-advised by Retireful, this actively managed multi-asset fund invests in a mix of equity and fixed income securities and other ETFs with the goal of providing its shareholders with capital appreciation and income. The fund uses quantitative approaches and internal analyzes to select its securities.
Otter Creek Advisors has launched the Otter Creek Focus Strategy ETF (ticker: OCFS). This actively managed solution will prioritize shares of small and mid-sized companies listed in the United States. In identifying companies for inclusion in the portfolio, Otter Creek selects companies based on qualitative attributes, such as their competitive advantage, long-term growth, the capabilities of their management team and their above-average financial profile. The company then applies quantitative screening using qualifiers, such as long-term profit growth, cash flow and return on capital.
In the final selection stage, the list of companies is narrowed down based on growth prospects and internal rates of return. Otter Creek’s concentrated portfolio leaves room for approximately 20 to 35 small- and mid-cap assets. The securities held by the fund will continue to be monitored to ensure optimal positioning of the fund.
JP Morgan Asset Management has launched the JPMorgan Active Developing Markets Equity ETF (ticker: JADE), an actively managed solution focused on emerging markets. JADE invests in various securities economically linked to emerging markets. This includes companies whose principal place of business is in an emerging market country or securities that trade primarily in an emerging market.
Additionally, issuers that have earned at least half of their revenues and profits from an emerging market or hold at least half of their assets in an emerging market may be considered. JADE’s portfolio may also contain companies or investment instruments that provide access to the economic risks and rewards of an emerging market country.
State Street Global Advisors has added the SPDR Portfolio Treasury ETF (ticker: SPTB), which will replicate the price and yield performance of the Bloomberg US Treasury Index. The Bloomberg US Treasury Index measures fixed-rate nominal debt, denominated in US dollars, released through the US Treasury. In particular, this index is composed of investment grade U.S. Treasury securities with a remaining maturity of one year or more. These securities must be fixed rate, non-convertible and denominated in US dollars.
YieldMax has launched the YieldMax Gold Miners Option Income Strategy ETF (Ticker: GDXY), an actively managed strategy that seeks to generate monthly income by selling/writing call options on the VanEck Gold Miners ETF (ticker: GDX). GDXY pursues a strategy that aims to reap attractive returns while maintaining a capped participation in GDX’s price gains.
Amplify ETFs launched the Amplify Weight Loss Drug & Treatment ETF (Ticker: THNR)an index ETF providing access to companies leading the development and commercialization of GLP-1 treatments.
THNR will track the VettaFi Weight Loss Drug & Treatment Index, an index composed of companies around the world that are either manufacturers or enablers of the GLP-1 pharmaceutical industry. The index holds 70 percent of its weight in manufacturers and about 30 percent in facilitators. To strengthen exposure and balance, each segment has a weighted, float-adjusted market capitalization.
Genter Capital Management has launched two fixed income ETFs, the Genter Capital Taxable Quality Intermediate ETF (ticker: GENT) and the Genter Municipal Quality Intermediate ETF (ticker: GENM).
GENT aims to provide investors with current income and limited risk to capital. The fund will invest in taxable quality securities rated BBB or higher and having an intermediate duration. Investment options include, among others, U.S. Treasury bills, Treasury inflation-protected securities, floating rate notes and U.S. agency bonds, and agency mortgage-backed securities.
GENM seeks to give investors access to current income exempt from federal income taxes by investing in municipal bonds. The credit rating of these bonds will be rated A or higher, although the fund may invest up to 30 percent of its assets in BBB-rated options. Even if the fund’s security rating falls below investment grade, GENM may still hold the option if the subadviser believes it would benefit the fund.
This article is sponsored by STOXX.
To view Canadian ETF launches for April, click here.
To view global ETF launches from May 16-23, 2024, click here.