ETF Odds & Ends: Funds Switch To ICE Indexes

Plus, launches included a trio of thematic ETFs from Global X.

Last week, one of the overlooked changes in the ETF space was the announcement that four iShares municipal bond ETFs will be switching to indexes provided by Intercontinental Exchange’s index operations. ICE also owns the NYSE.

ICE indexes currently underlie nearly 70 ETFs, with at least eight existing ETFs switching their indexes to ICE benchmarks so far this year alone.

The affected ETFs will adopt their new benchmarks as of Sept. 15 and are as follows:

• iShares California Muni Bond ETF (CMF) will switch its index from the S&P California AMT-Free Municipal Bond Index to the ICE AMT-Free California Municipal Index.
• iShares National Muni Bond ETF (MUB) will switch its index from the S&P National AMT-Free Municipal Bond Index to the ICE AMT-Free US National Municipal Index.
• iShares New York Muni Bond ETF (NYF) will switch its index from the S&P New York AMT-Free Municipal Bond Index to the ICE AMT-Free New York Municipal Index.
• iShares Short-Term National Muni Bond ETF (SUB) will switch its index from the S&P Short Term National AMT-Free Municipal Bond Index to the ICE Short Maturity AMT-Free US National Municipal Index.

Launches

There were also a handful of launches that were not covered by ETF.com during the week. The most notable was the trio of thematic ETFs that launched on Wednesday from Global X. While the funds don’t break new ground, they do offer alternative takes on spaces already covered by other thematic ETFs.

The three ETFs all come with expense ratios of 0.50% and list on the Nasdaq stock exchange.

• The Global X Blockchain ETF (BKCH) covers blockchain companies and is remarkable among the three funds as it is the cheapest ETF operating in the blockchain space by 15 basis points.
• The Global X Hydrogen ETF (HYDR) covers all aspects of the hydrogen energy space, from production to integration.
• The Global X AgTech & Food Innovation ETF (KROP) covers technology and innovations in the food and agriculture industry.

Meanwhile, the ATAC Credit Rotation ETF (JOJO) is an actively managed ETF that relies on the utility sector’s performance relative to U.S. large caps to determine whether it will invest in high yield bonds or long-duration Treasury securities. The fund lists on the NYSE Arca and comes with an expense ratio of 1.17%. It launched July 16.

Finally, the iShares iBonds Dec 2031 Term Treasury ETF (IBTL) debuted on July 13. The fund invests primarily in Treasury bonds that mature in the year 2031, and is part of BlackRock’s lineup of iBonds target maturity ETFs. The fund charges an expense ratio of 0.07% and lists on the Nasdaq.

Other Changes
The Morgan Stanley Cushing MLP High Income ETN (MLPY) was called on June 8. The ETN’s closure brings the number of shutdowns in the first half of the year to 22. That’s a far cry from the roughly 150 exchange-traded products that shut down in the first half of 2020.

As of July 16, two iShares ETFs, the iShares U.S. Medical Devices ETF (IHI) and the iShares Global Tech ETF (IXN) both underwent 6-for-1 forward splits.

Contact Heather Bell at [email protected]