Daily ETF Watch: 3 First Trust Launches

First Trust, the Wheaton, Illinois-based fund sponsor known for its interesting mix of strategies, today is rolling out three ETFs focused on different pockets of the investment universe—emerging market bonds denominated in local currencies; short-dated mortgage-backed securities; and an international version of its successful domestic fund focused on initial public offerings.

The three funds and their annual expense ratios are as follows:

• First Trust Emerging Markets Local Currency Bond ETF (FEMB), an actively managed fund that has an annual expense ratio of 85 basis points, or $85 for each $10,000 invested
• First Trust Low Duration Mortgage Opportunities ETF (LMBS), an actively managed fund that has an annual expense ratio of 65 basis points
• First Trust International IPO ETF (FPXI), an index ETF that has an annual expense ratio of 70 basis points

The three launches bring to 94 the number of ETFs First Trust has listed in the U.S. market. While the firm’s $29 billion in total ETF assets under management make it a second-tier firm, it has carved out a distinct reputation for itself as a purveyor of interesting funds that are either actively managed, indexed or, like its AlphaDex family, squarely in the realm of enhanced beta securities.

All three funds launching today have their primary listings on the Nasdaq exchange.

Fund Shutterings

On the flip side, VelocityShares decided to shutter three ETFs for lack of assets.

The funds—all of which focus on various aspects of the emerging markets—and their assets are as follows:

• VelocityShares Emerging Markets DR ETF (EMDR | F-51), $2.5 million
• VelocityShares Russia Select DR ETF (RUDR | F-77), $1.94 million
• VelocityShares Emerging Asia DR ETF (ASDR | F-34), $9.05 million

The funds will be in the process of closing down from Nov. 5 through Nov. 21, and will close to new investors on Nov. 18, according to regulatory paperwork about the fund shutterings that was dated Nov. 4.

Shareholders of record remaining on Nov. 21 will receive cash at the net asset value of their shares as of that date. That payout will include any capital gains and dividends as of such date, the filing said.