ETF Odds & Ends: An Active Week
Despite it being a week before a holiday, the ETF industry didn’t slow down.
Among the launches was the Friday rollout of the Day Hagan/Ned Davis Research Smart Sector International ETF (SSXU).
The actively managed fund lists on the NYSE Arca with an expense ratio of 0.79%. It’s essentially an international version of the nearly $450 million Day Hagan/Ned Davis Research Smart Sector ETF (SSUS). While SSUS invests in U.S. sector ETFs, SSXU invests in country and regional ETFs with the intention of outperforming the MSCI ACWI ex USA Index.
The Franklin Responsibly Sourced Gold ETF (FGLD) also launched during the week. It holds gold bullion bars mined after 2012, which is when the London Bullion Market Association’s Responsible Gold Guidance was issued. The standards were established to avoid human rights abuses and to prevent money laundering and terrorism financing, among other reasons. The fund comes with an expense ratio of 0.15% and lists on the NYSE Arca.
On Thursday, the iShares iBonds Dec 2032 Term Corporate ETF (IBDX) debuted with an expense ratio of 0.10% on the NYSE Arca. The fund is part of a family of ETFs offered by iShares that features bonds maturing in specific years. All of IBDX’s holdings are investment-grade corporate bonds set to mature in 2032. The other funds in the line of ETFs cover 2022 through 2031.
The AOT Growth and Innovation ETF (AOTG) rolled out on Wednesday. It lists on the Nasdaq with an expense ratio of 0.75%. The fund is actively managed and targets companies with high growth potential paired with a low marginal cost business model. The idea is to highlight companies that can significantly increase their output without seeing an equally significant increase in costs. The fund’s prospectus cites such companies as insurance, financial services and software providers.
DWS unveiled the Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) on Tuesday; it lists on the NYSE Arca with an expense ratio of 0.10%. The fund tracks the Solactive ISS ESG United States Net Zero Pathway Enhanced Index, which covers U.S. companies that meet certain ESG requirements while also aligning with the Paris Climate Accords for net-zero emissions.
Closures
The week also featured four new announced closures set to complete in July. Together, they bring the total expected year-to-date closures by the end of August to 65. The ETFs and their last days of trading are as follows:
- ETFMG Prime 2x Daily Inverse Junior Silver Miners ETF (SINV), July 15
- ETFMG Real Estate Tech ETF (HHH), July 15
- Uncommon Portfolio Design Core Equity ETF (UGCE), July 22
Other Developments
As of Tuesday, the Monarch Ambassador Income ETF (MAMB) raised its expense ratio from 1.47% to 1.56%, while the Monarch ProCap ETF (MPRO) decreased its expense ratio from 1.36% to 1.35%.
Effective Sept. 1, the IQ U.S. Real Estate Small Cap ETF (ROOF) will change its name to the IQ CBRE NextGen Real Estate ETF and its index from the IQ US Real Estate Small Cap Index to the IQ CBRE NextGen Real Estate Index.
Contact Heather Bell at [email protected]
