Daily ETF Watch: Van Eck Adds MLP Funds

The Yorkville MLP ETFs transition to Van Eck’s Market Vectors family.

Reviewed by: Heather Bell
Edited by: Heather Bell

Today the Yorkville MLP ETFs transferred over to Van Eck’s Market Vectors arm. Going forward, the Yorkville High Income MLP ETF (YMLP) and the Yorkville High Income Infrastructure MLP ETF (YMLI) will be known as the Market Vectors High Income MLP ETF and Market Vectors High Income Infrastructure MLP ETF, respectively, and will continue to trade under the same tickers.

The reorganized funds join Market Vectors’ range of energy-focused ETFs covering everything from companies engaged in fracking to oil refiners to renewable energy resources fields. Until now, Van Eck did not have any funds targeting the MLP space specifically.

The move is unusual, but similar to the Market Vectors acquisition and reorganization of several of the Merrill Lynch HOLDRs in late 2011. The ETF issuer acquired the HOLDRs, which were sector-focused exchange-traded baskets that had static components; the products were never rebalanced or updated. Van Eck transformed the six funds into standard 1940 Act ETFs that were tied to indexes.

UBS Debuts New Global High-Yield ETN

UBS has rolled out another exchange-traded note created for Fisher Investments. The UBS AG FI Enhanced Global High Yield ETN (FIHD) tracks the MSCI World High Dividend Yield USD Gross Total Return Index.

Barclays, Credit Suisse and UBS have all launched ETNs designed for Fisher Investments. Some of the ETNs even track the same indexes, but are provided by different issuers. This helps to diversify the counterparty risk that comes with investing in an ETN.

FIHD is very similar to the $1.2 billion Barclays ETN+ FI Enhanced Global High Yield ETN (FIGY), which tracks the same index. FIGY has an expense ratio of 0.76%, according to ETF.com, while the annual tracking rate for FIHD is listed as 0.80%.

Dynamic Credit Fund Filed

Virtus has filed for an actively managed ETF that will target fixed-income sectors in which the subadvisor expects the companies to see improvements to their credit rating. The Virtus Newfleet Dynamic Credit ETF (BLHY) will be subadvised by Newfleet Asset Management, which also subadvises the Virtus Newfleet Multi-Sector Unconstrained Bond ETF (NFLT | F).

The fund can invest in a wide range of “credit investments” including interest rate futures, loans, asset-backed securities, and regular corporate and sovereign bonds as well as ETFs that invest in all of the preceding.

BLHY can invest in any level of credit rating, but the prospectus seems to suggest the fund will have a significant concentration of high-yield investments, and indicates the subadvisor will use a bottom-up, fundamental-focused approach that targets a duration on par with that of the Barclays U.S. High-Yield 2% Issuer Capped Bond Index. The ETF will also be able to invest in securities of any maturity.

The filing indicated BLHY will come with a net expense ratio of 0.68% and list on the Nasdaq stock exchange.

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.