ETF Odds & Ends: First Mutual Fund Conversion

April 05, 2021

Last week, we covered the launch of the ARK space ETF extensively, but there were other developments of note, including the first conversion of two mutual funds into ETF wrappers, as well as a number of expense ratio changes from various issuers.

Guinness Atkinson Marks First
Guinness Atkinson converted two of its existing mutual funds into ETFs in a nontaxable event as of March 29. The Guinness Atkinson Dividend Builder Fund (GAINX) and the Guinness Atkinson Asia Pacific Dividend Builder Fund (GAADX) are now the SmartETFs Dividend Builder ETF (DIVS) and SmartETFs Asia Pacific Dividend Builder ETF (ADIV), respectively.

The two ETFs trade on the NYSE Arca. DIVS comes with an expense ratio of 0.65%, while ADIV charges 0.78%. 

The conversion was the first of its kind, but Dimensional Fund Advisors has plans to convert four of its tax-managed mutual funds into ETFs in June in order to take advantage of the tax efficiency of the ETF wrapper. Dimensional currently has three actively managed ETFs trading, with roughly $1 billion in assets in the funds.

Fee Changes
There was also a significant number of expense ratio changes during the last week, including two from iShares:

Share Splits

Effective March 29, there were two reverse splits enacted on Microsectors ETNs. The MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETN (BNKD) and MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN (NRGD) both underwent 1-for-10 splits.

Other Changes

There were also a number of changes announced or completed last week by the likes of Global X, Agility Shares and SoFI.

As of April 1, the Global X Health & Wellness Thematic ETF (BFIT) changed its name to the Global X Health & Wellness ETF, while the Global X China Disruption ETF (KEJI) changed its name to the Global X China Innovation ETF. Meanwhile, the Global X Longevity Thematic ETF (LNGR) changed its name to the Global X Aging Population ETF and its ticker to AGNG, and the Global X Millennials Thematic ETF (MILN) changed its name to the Global X Millennial Consumer ETF.

Effective April 23, the Agility Shares Managed Risk ETF (MRSK) will change its name to the Toews Agility Shares Managed Risk ETF, while the Agility Shares Dynamic Tactical Income ETF (THY) will change its name to the Toews Agility Shares Dynamic Tactical Income ETF.

Effective April 5, the SoFi 50 ETF (SFYF) will change its name to the SoFi Social 50 ETF.

Other Launches

In addition to Guinness Atkinson’s March 29 rollout and the launches already covered by ETF.com, there were additional launches from other issuers.

John Hancock debuted the John Hancock Corporate Bond ETF (JHCB) on March 31. The actively managed fund invests in investment-grade corporate bonds with a focus on generating income, and comes with an expense ratio of 0.29%. It lists on the NYSE Arca.

April 1 saw a stunning 14 ETFs make their debut. Among them were the Democracy International Fund ETF (DMCY) and the Trajan Wealth Income Opportunities ETF (TWIO), both from newcomers to the space.  The former tracks a global ex-U.S. index that assigns more weight to companies based on the country they are based in and how friendly it is to democracy. DMCY comes with an expense ratio of 0.50% and lists on the NYSE Arca.

Meanwhile, TWIO is actively managed and seeks to generate income by investing in high-yielding securities like fixed income, preferred securities and high-yield stocks. It comes with an expense ratio of 0.85% and lists on the NYSE Arca.

Contact Heather Bell at [email protected]

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