Despite a Thanksgiving holiday lull, there has been plenty of action in the ETF space in the past two weeks.
Launches & Closures
While launches saw a slowdown, among the rollouts of note was that of the Genuine Investors ETF (GCIG). Brought to market by newcomer GCI Investors, the actively managed fund targets companies exhibiting quality and value characteristics as determined by rigorous analysis. The fund launched on the NYSE Arca with an expense ratio of 1.00%.
Closures are ticking up again as the year comes to a close. Right before the holiday, the Principal International Multi-Factor ETF (PDEV) ceased to trade after the close of business on Nov. 23 after launching in 2019.
The Defiance Nasdaq Junior Biotechnology ETF (IBBJ) saw its last day of trading on Dec. 2. The fund launched in 2020. That same day, the KFA Dynamic Fixed Income ETF (KDFI) also had its last day of trading, roughly two years after its launch in 2019.
With the year winding down, multiple defined maturity bond ETFs are shuttering as they reach the end of their maturity years. The iShares iBonds Dec 2021 Term Treasury ETF (IBTA) ceased to trade after Nov. 30, and the iShares iBonds Dec 2021 Term Muni Bond ETF (IBMJ) closed after the end of trading on Dec. 2.
Invesco will also close several of its target maturity bond ETFs after the end of trading on Dec. 15. They include the following:
- Invesco BulletShares 2021 USD Emerging Markets Debt ETF (BSAE)
- Invesco BulletShares 2021 Corporate Bond ETF (BSCL)
- Invesco BulletShares 2021 High Yield Corporate Bond ETF (BSJL)
- Invesco BulletShares 2021 Municipal Bond ETF (BSML)
Another four ETNs will be called later this month. The MicroSectors FANG+ Index -2X Leveraged ETN (FNGZ) and the MicroSectors FANG+ Index Inverse ETN (GNAF), which both launched in August 2018, will be called as of Dec. 17, while the MicroSectors Cannabis ETN (MJJ) and MicroSectors Cannabis 2X Leveraged ETN (MJO) will be called as of Dec. 27. The marijuana ETNs both launched in December 2019.
Finally, the Legg Mason Global Infrastructure ETF (INFR), which launched in December 2016, will no longer accept creation orders as of Jan. 5, with its last day of trading set for Jan. 27.
Index & Name Changes
Index and name changes were also prevalent during the two-week period, with ETFs from KraneShares, iShares and TrimTabs featuring prominently among the affected funds.
As of Nov. 28, the KraneShares Asia Pacific High Yield Bond ETF (KHYB) changed its name to the KraneShares Asia Pacific High Income Bond ETF.
On Dec. 3, three more funds changed their names. The KraneShares California Carbon Allowance ETF (KCCA) changed its name to the KraneShares California Carbon Allowance Strategy ETF, while the KraneShares European Carbon Allowance ETF (KEUA) changed its name to the KraneShares European Carbon Allowance Strategy ETF, and the KraneShares Global Carbon ETF (KRBN) became the KraneShares Global Carbon Strategy ETF.
As of Dec. 1, four interest-rate-hedged iShares funds adopted indexes despite having launched as actively managed funds. The iShares Interest Rate Hedged Emerging Markets Bond ETF (EMBH) now tracks the BlackRock Interest Rate Hedged Emerging Markets Bond Index, while the iShares Interest Rate Hedged High Yield Bond ETF (HYGH) tracks the BlackRock Interest Rate Hedged High Yield Bond Index. The iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) now tracks the BlackRock Interest Rate Hedged Long-Term Corporate Bond Index, and the iShares Interest Rate Hedged Corporate Bond ETF (LQDH) tracks the BlackRock Interest Rate Hedged Corporate Bond Index.
Four TrimTabs ETFs also completed name and index changes as of Nov. 29. The TrimTabs Donoghue Forlines Tactical High Yield ETF (DFHY) changed its name to the Donoghue Forlines Tactical High Yield ETF and its index form the TrimTabs Donoghue Forlines Tactical High Yield Index to the FCF Tactical High Yield Index. The TrimTabs Donoghue Forlines Risk Managed Innovation ETF (DFNV) changed its name to the Donoghue Forlines Risk Managed Innovation ETF and its index from the TrimTabs Donoghue Forlines Risk Managed Free Cash Flow Innovation Index to the FCF Risk Managed Quality Innovation Index. The TrimTabs U.S. Free Cash Flow Quality ETF (TTAC) changed its name to the FCF US Quality ETF, and the TrimTabs International Free Cash Flow Quality ETF (TTAI) changed its name to the FCF International Quality ETF.
A number of similar changes lie ahead in 2022. Before the end of January, the First Trust NASDAQ Global Auto Index Fund (CARZ) will change its name to the First Trust S-Network Electric & Future Vehicle Ecosystem ETF and its index form the NASDAQ OMX Global Auto Index to the S-Network Electric & Future Vehicle Ecosystem Index. At the same time, the First Trust Nasdaq Retail ETF (FTXD) will change its name to the First Trust S-Network Global E-Commerce ETF, its ticker to ISHP and its index from the Nasdaq US Smart Retail Index to the S-Network Global E-Commerce Index.
And as of Feb. 14, the AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) will drop its index, the Dow Jones U.S. Thematic Market Neutral Low Beta Index, to become actively managed.
Several funds also made expense ratio changes. Effective Nov. 26, the LHA Market State Alpha Seeker ETF (MSVX) increased its expense ratio from 1.16% to 1.50%, and the LHA Market State Tactical Beta ETF (MSTB) decreased its expense ratio from 1.18% to 1.15%.
As of Nov. 30, the Anfield Universal Fixed Income ETF (AFIF) lowered its expense ratio from 1.23% to 1.01%, and the ARK Next Generation Internet ETF (ARKW) increased its expense ratio to 0.83% from 0.79%.
Finally, the KraneShares European Carbon Allowance ETF (KEUA) is set to undergo a 3-for-1 forward split before the start of trading on Dec. 13.
Contact Heather Bell at [email protected]