Daily ETF Watch: iShares Delays Launch

December 06, 2013

An active bond fund has to wait a bit longer to see the light of day.

iShares, the largest purveyor of ETFs in the world, has filed paperwork with regulators detailing a delay until next year the launch of an actively managed bond fund that would invest in dollar-denominated corporate and government debt.

The iShares Liquidity Income Fund—an ETF designed to generate current income and preserve capital—would join the likes of the Guggenheim Enhanced Core Bond ETF (GIY | C-41), which launched in February 2008, but has only attracted $4.9 million in assets to date.

The portfolio will be made up of primarily investment-grade fixed- and floating-rate debt that’s dollar-denominated, the filing said. It would also have a dollar-weighted average life of one year or less—that’s the weighted average of the times by which the principal has to be repaid.

Filings

  1. ALPS Advisors is delaying the launch of its U.S. Equity Synthetic Reverse Convertible Index Fund (RVCT) until next year, according to a filing. Reverse convertibles are structured products offered by major banks to investors looking for high levels of income. The fund will track performance of an index that measures the return of a hypothetical portfolio consisting of over-the-counter put options that have been written on 13 of the most volatile U.S. stocks. It has an expense ratio of 0.95 percent, or $95 for every $10,000 invested.
  2. AdvisorShares is currently prepping an actively managed high-dividend fund, dubbed the AdvisorShares Athena High Dividend ETF. It will launch sometime next year. The fund will bet on U.S. and foreign equity securities of any capitalization range and American depositary receipts, according to a filing.

    To a lesser extent, the fund will also invest in other ETFs and exchange-traded notes, as well as real estate investment trusts, master limited partnerships and closed-end funds. No fund ticker or fees were detailed in the filing.

     

     

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