ETF Odds & Ends: 1st Schwab Launch Since 2019

Last week, Schwab rolled out its first ETF in years, with several other ETFs also rolling out.

The Schwab International Dividend Equity ETF (SCHY) tracks the Dow Jones International Dividend 100 Index, which covers stocks from developing and emerging markets that have logged 10 years of consecutive dividend payments. It comes with an expense ratio of 0.14% and lists on the NYSE Arca. SCHY is the first fund to launch from Charles Schwab since 2019.

The week also saw the launch on Friday of the Formidable ETF (FORH), an actively managed equity fund that relies on both top-down and bottom-up research and analysis. The fund comes with a rather pricey expense ratio of 1.20% and lists on the NYSE Arca.

On the same day, the Applied Finance Valuation Large Cap ETF (VSLU) also hit the market. The actively managed ETF selects its portfolio of roughly 200 securities based on such criteria as valuation, projected future earnings, dividends, financing activity, growth potential, recent performance and business strategy, according to its prospectus. VSLU comes with an expense ratio of 0.49% and lists on the NYSE Arca.

Index Changes

There were also a few index changes announced or completed during the week. As of April 26, the VanEck Vectors Low Carbon Energy ETF (SMOG) changed its index from the Ardour Global Index to the MVIS Global Low Carbon Energy Index.

More changes are set to become effective on July 30, with the ETRACS Quarterly Pay 1.5X Leveraged Wells Fargo BDC Index ETN (BDCX) changing its index from the Wells Fargo Business Development Company Index to the MVIS US Business Development Companies Index.

The ETRACS Linked to Wells Fargo Business Development C Index ETN Series B (BDCZ) will change its index from the Wells Fargo Business Development Company Index to the MVIS US Business Development Companies Index at the same time.

Filing Highlights

There were also a number of unique filings for new ETFs during the week. The Amplify Thematic All-Stars ETF, for example, will invest in stocks held by leading thematic ETFs, encompassing themes such as disruptive technology, fintech and sustainability, among others.

Direxion has also planned to roll out four ETFs that will offer 200% and -200% exposure to clean energy and marijuana indexes. Those proposed funds include the following:

• Direxion Daily Global Clean Energy Bull 2X Shares
• Direxion Daily Global Clean Energy Bear 2X Shares
• Direxion Daily Cannabis Bull 2X Shares
• Direxion Daily Cannabis Bear 2X Shares

And Nuveen is looking to launch the Nuveen ESG Dividend ETF (NUDV), which will target companies paying “stable and persistent” dividends that are also among the highest-ranking securities based on ESG criteria.

Contact Heather Bell at [email protected]