Two investment advisory groups debuted a total of five new ETFs in separate launches Tuesday, seeking to expand on their combined $1.6 billion in assets under management.
Cabana Opens Algorithmic Fund-Of-Funds Family
Cabana Asset Management launched a trio of new funds Tuesday, seeking to move some algorithm-based trading mechanisms into an ETF product.
The Arkansas-based firm’s new funds are the Cabana Target Leading Sector Conservative ETF (CLSC), Cabana Target Leading Sector Moderate ETF (CLSM) and the Cabana Target Leading Sector Aggressive ETF (CLSA), all trading on the NYSE Arca.
The white label firm Exchange Traded Concepts issued the funds on behalf of Cabana.
The three funds are all actively managed and will buy into other sector-specific ETFs that Cabana believes will outperform based on broader economic conditions. Reallocations are based on the fund’s target investment style, ranging from the low-volatility conservative option to the maximum-growth aggressive fund.
All three of the funds carry initial expense ratios of 0.69%, but will rise to 0.9% after a one-year fee waiver expires.
Cabana is bringing $500 million in customer assets to the three funds upon their launch, following a strategy it used when it launched its family of five “targeted drawdown” funds last fall. Those funds currently hold approximately $1.54 billion in assets under management.
Pacer, Metaurus Advisors Launch Large Cap Dividend Funds
Meanwhile, Pacer ETFs launched two new funds on behalf of Metaurus Advisors, three years after the latter group issued its first funds.
The Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF (TRPL) and the Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL) carry 80% of their assets in a component following the S&P 500 and the rest in S&P dividend futures contracts.
The goal of holding those futures positions is to produce returns that are respectively triple or quadruple what an investor would receive if they held a dividend-producing ETF following the S&P 500 Index, in exchange for only having 92% and 88% of the price exposure that they’d have by holding a fund just following the index.
Both funds carry an expense ratio of 0.79%, and are trading on the NYSE Arca
Metaurus launched two other dividend products in its foray into ETFs in 2018, with a combined $66.1 million in assets so far.