Daily ETF Watch: 3 ETNs Debut

Two are retreads of previously existing products.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Three new ETNs launched today on the NYSE Arca. Credit Suisse rolled out an oil ETN, while UBS launched new versions of two funds it had shut down at the start of the month.

The Credit Suisse X-Links WTI Crude Oil Index ETN (OIIL) tracks an index from Bloomberg and comes with an expense ratio of 0.55%. With oil prices drastically low, investors could find this product appealing if they think the commodity is due for a turnaround.

The ETNs from UBS also have an energy-related theme. The firm liquidated the Etracs 2X Monthly Leveraged Long Alerian MLP Infrastructure ETN (MLPL) and Etracs 2x Monthly Leveraged S&P MLP Index ETN (MLPV) at the start of February, presumably due to their steeply declining prices. Today UBS rolled out the Etracs 2xMonthly Leveraged Alerian MLP Infrastructure ETN Series B (MLPQ) and the Etracs 2xMonthly Leveraged S&P MLP Index ETN Series B (MLPZ), which are essentially the same products.

MLPQ charges tracking fee of 0.85%, while MLPZ charges 0.95%.

Goldman Plans 2 Funds

A new filing from Goldman Sachs outlines its plans to roll out two more ETFs. One will focus on stocks with high Sharpe ratios, and the other will invest in equities held by hedge funds. Both funds track in-house indexes.

The Goldman Sachs High Sharpe Ratio ETF will track an index that selects the stocks from a universe of large-cap U.S. equities that have the highest projected Sharpe ratios in their respective sectors, with the intention of reflecting the general sector weights over the overall universe. The index ultimately includes 50 equities and equal-weights them.

The Goldman Sachs Hedge Fund VIP ETF’s underlying index will use regular U.S. hedge fund 13F filings to select a portfolio of stocks that are most often included in the top 10 holdings of the hedge funds in the targeted universe. The equal-weighted index held 50 components as of June 30, 2015, according to the prospectus, which also specifically notes that the index is not designed to mimic hedge fund performance.

The two funds are slated to list on the NYSE Arca. However, the filing did not include expense ratios or tickers.


Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.