During a shortened but eventful week that saw another mutual-fund-to-ETF conversion, more launches from Dimensional Fund Advisors and the ETF industry debut of Capital Group, there were also a number of existing ETFs that underwent changes and some additional launches.
Among those launches was the Thursday rollout of the he Harbor Corporate Culture Leaders ETF (HAPY), which began trading on the NYSE Arca Thursday with an expense ratio of 0.50%.
HAPY tracks an index by behavioral economics-focused investment firm Irrational Capital, which in turn uses a proprietary composite score to rank companies with more than $1 billion in market capitalization based on employee motivation, point of view diversity and compensation equity. The index rebalances quarterly and reconstitutes every year.
The fund joins five other ETFs in the Harbor Capital lineup.
The Global X Dow 30 Covered Call ETF (DJIA) also debuted on the NYSE Arca Thursday, with a 0.60% expense ratio.
DJIA follows the Dow Jones Industrial Average and holds options to generate some income and provide protection in the case of a minor downturn in the index. The fund is the latest in Global X’s line of covered call ETFs with approximately $8.5 billion in assets.
Another two funds closed during the week. The Pacer Salt Low truBeta US Market ETF (LSLT) and the Pacer Salt High truBeta US Market ETF (SLT) both saw their last day of trading on Thursday. These latest closures bring the number to 24 year-to-date.
There were limited changes to existing ETFs during the week. As of Feb. 23, the First Trust CEF Income Opportunity ETF (FCEF) changed its name to the First Trust Income Opportunities ETF. At the same time, the iPath Shiller CAPE ETN (CAPE) changed its ticker to CAPD.
The First Trust Strategic Income ETF (FDIV) will change its name to the First Trust High Income Strategic Focus ETF and assume the ticker HISF on Feb. 28.
ETF Fee Changes
Vanguard cut expense ratios among 10 of its ETFs effective on Friday:
- Vanguard Total International Bond ETF (BNDX) from 0.08% to 0.07%
- Vanguard FTSE All-World ex-US ETF (VEU) from 0.08% to 0.07%
- Vanguard International Dividend Appreciation ETF (VIGI) from 0.20% to 0.15%
- Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) from 0.11% to 0.07%
- Vanguard Total World Stock ETF (VT) from 0.08% to 0.07%
- Vanguard Tax-Exempt Bond Index Fund ETF (VTEB) from 0.06% to 0.05%
- Vanguard FTSE Emerging Markets ETF (VWO) from 0.10% to 0.08%
- Vanguard Emerging Markets Government Bond ETF (VWOB) from 0.25% to 0.20%
- Vanguard Total International Stock ETF (VXUS) from 0.08% to 0.07%
- Vanguard International High Dividend Yield ETF (VYMI) from 0.28% to 0.22%
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) raised its fee from 0.59% to 0.62% on Friday as well.
Two Direxion ETFs will undergo 1-for-10 reverse splits after the close of business on March 25. The affected funds are the Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares (DRIP) and the Direxion Daily Semiconductor Bear 3X Shares (SOXS).
Finally, Schwab has announced 2-for-1 share splits for five funds that will become effective March 11. The affected funds include the following:
- Schwab U.S. Large-Cap Growt ETF (SCHG)
- Schwab U.S. Large-Cap ETF (SCHX)
- Schwab U.S. Broad Market ETF (SCHB)
- Schwab U.S. Small-Cap ETF (SCHA)
Contact Heather Bell at [email protected]