Daily ETF Watch: 3 Funds Launch

December 11, 2014

Validea Launches ‘Legends’ Fund

West Hartford, Connecticut-based Validea Capital Management burst onto the ETF scene with the rollout of a fund designed to mimic the strategies of Wall Street’s best investors.

The Validea Market Legends ETF (VALX) is actively managed but relies on a complex quantitatively and fundamentally based strategy to replicate the strategies of 10 of the most successful and studied Wall Street investors, according to its prospectus.

Validea has developed investment models based on the published information available about the strategies of “Wall Street legends” like Warren Buffett and Benjamin Graham. VALX represents the top 10 choices from each of the 10 best-performing models developed by Validea.

The strategy resembles that of an index-based fund, the Global X Guru ETF (GURU | B-54), which represents the investment positions of some of the largest hedge funds, as reflected by their public filings. GURU, which launched in June 2012, has nearly $420 million in assets under management.

GURU charges 75 basis points in expense ratio, while VALX comes with an expense ratio of 79 basis points.

DB Adds To Currency-Hedged Lineup
Deutsche Bank added the Deutsche X-trackers MSCI EMU Hedged Equity ETF (DBEZ) to its extensive lineup of currency-hedged equity ETFs, bringing the total number of funds in the series to an even dozen.

DBEZ’s index, according to its prospectus, covers nearly 700 stocks from 10 developed European countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. The fund comes with an expense ratio of 0.45 percent.

iShares, one of DB’s biggest competitors in the currency-hedged space alongside WisdomTree, launched a fund tracking the same index in July. The iShares Currency Hedged MSCI EMU ETF (HEZU) comes with an expense ratio of 51 basis points and so far has accumulated about $35 million in assets under management.

Last year, Deutsche Bank launched a currency-hedged ETF covering the entire developed Europe market. The Deutsche X-trackers MSCI Europe Hedged Equity ETF (DBEU | B-64) also comes with an expense ratio of 45 basis points, but it includes Denmark, Norway, Sweden, Switzerland and the United Kingdom in the countries it selects its stocks from, in addition to the 10 countries covered by DBEZ. DBEU has more than $690 million in assets under management.


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