These 10 ETFs all launched in 2013, and they’ve made gathering assets look like child’s play.
More than 60 new ETFs have entered the arena since the start of the year, and as the midway point in in 2013 approaches, it’s time for a routine check to see how the newest players are faring in gathering assets under management.
Bond funds have been the hot-ticket investment vehicles this year, as easing monetary policies throughout the world pushed borrowing rates into the dirt until recently. In addition, high-yielding master limited partnerships have piqued plenty of interest from the ETF investor world. Dividend strategies have remained attractive, too.
The salient theme among the 10 most successful new fund launches of 2013 in two words would be “actively managed.”
Of the funds that have launched in 2013, the top asset gainers are all a spin on one of these popular strategies, and the majority of the funds are actively managed.
In reverse order, here are the biggest asset gainers of new ETFs so far in 2013, according to IndexUniverse data.
Vanguard Emerging Markets Government Bond
Launch Date: 5/31/2013
AUM: $70.72 million
The Vanguard Emerging Markets Government Bond fund (NYSEArca: VWOB) serves up access to emerging market debt at a time when investors are searching for higher yield. VWOB has pulled in $71 million since it launched at the end of May.
Cambria Shareholder Yield
Launch Date: 5/14/2013
AUM: $76.17 million
One-month-old Cambria Shareholder Yield fund (NYSEArca: SYLD) is a high-yielding active fund, combining the payout of dividend stocks with the popular payout strategy of share buybacks. At only 59 basis points, the actively managed fund is competitive in terms of expense ratios. Its cheap price tag, coupled with a compelling yield strategy, has surely helped it scoop up $76 million since it launched in May.
First Trust Preferred Securities and Income
Launch Date: 2/11/2013
AUM: $76.22 million
The actively managed First Trust Preferred Securities and Income fund (NYSEArca: FPE) promises a dividend yield of around 5.5 percent, and that’s attractive. Plus, it’s the first fund of its kind, combining active management with a preferred stock portfolio. Investors are keen on preferred stocks because they trade like an equity but offer the steady distribution of a corporate bond. First Trust pioneered something solid with FPE; it’s grabbed almost $80 million in just four months.
AdvisorShares Newfleet Multi-Sector Income
Launch Date: 3/19/2013
AUM: $84.45 million
When the AdvisorShares Newfleet Multi-Sector Income ETF (NYSEArca: MINC) entered the market in March of this year, there was skepticism regarding how it could compete with similar funds like Pimco’s Enhanced Short Maturity Strategy ETF (NYSEArca: MINT), which has almost half the expense ratio of MINC.
MINC is diversified across 14 different bond sectors, and it’s actively managed. Plus, it has global and domestic reach. These factors set it apart from competition like MINT, and while MINT has $3.38 billion in AUM compared with MINC’s $84 million, with just three months of trading under its belt, it’s fair to say MINC has made a splash in the bond sphere.