ETF Odds & Ends: Launches Dominate The Week

May 20, 2022

There was very little activity during the week in the ETF space beyond the 11 new funds that debuted on the market. Among the new launches were offerings from ALPS and a few newcomers to the ETF space. 

The ALPS Intermediate Municipal Bond ETF (MNBD)  debuted on the NYSE Arca on Friday, with an expense ratio of 0.50%. 

MNBD actively selects investment-grade municipal bonds, targeting a portfoliowide average duration between three and seven years. 

There are nine other actively managed municipal bond ETFs on the U.S. market, according to FactSet data, the largest being the $707 million PIMCO Intermediate Municipal Bond Active ETF (MUNI)

The STF Tactical Growth ETF (TUG) and the STF Tactical Growth & Income ETF (TUGN), both actively managed, launched on the Nasdaq Thursday, both charging an expense ratio of 0.65%. 

The funds use internal models and economic data to pivot between two different strategies. TUG will seek to produce the returns of the Nasdaq-100 or long-duration Treasurys based on market conditions. TUGN follows the same model, but includes an options spread strategy on the technology index to generate income. 

TUG and TUGN are the first ETFs from Texas-based advisor STF Management LP. 

On Wednesday, the Constrained Capital ESG Orphans ETF (ORFN) rolled out on the NYSE Arca with an expense ratio of 0.75%. 

The fund tracks an index covering stocks falling into categories typically excluded by ESG strategies. Those categories include fossil fuel energy, nuclear power, electric utilities, tobacco, weapons, alcohol and gambling.  

Upcoming Conversions 

A handful of mutual-fund-to-ETF conversions are also scheduled for later this year.  

In late May, the Westfield Capital Dividend Growth Fund, which includes an investor class of shares trading under the ticker WCDGX, will convert into an ETF wrapper. The fund targets large cap U.S. stocks that pay dividends and offer growth at a reasonable price. It has roughly $150 million in assets under management.  

The new ETF will trade under the name and ticker Harbor Dividend Growth Leaders ETF (GDIV)

Two funds owned by parent company Franklin Templeton will also convert from mutual funds into ETFs as of Oct. 28. The $237 million BrandywineGLOBAL – Dynamic US Large Cap Value Fund will become the BrandywineGLOBAL– Dynamic US Large Cap Value ETF.

Meanwhile, the $42 million Martin Currie International Sustainable Equity Fund will become the Martin Currie Sustainable International Equity ETF. It’s not clear yet what the tickers of the new ETFs will be.  

 

Contact Heather Bell at [email protected] 

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