ETF Odds & Ends: Pending Conversions
Plus, an actively managed ETF-of-ETFs and a digital health ETF launched during the week.
The first mutual-fund-to-ETF conversions occurred in 2021, and this year has seen the trend continue. Both Dimensional and J.P. Morgan are converting existing mutual funds into ETFs this spring.
On or around May 6, Dimensional’s Tax-Managed U.S. Marketwide Value Portfolio II will be acquired by the Dimensional US Marketwide Value ETF, which will be listed on the NYSE Arca with the ticker DFUV.
J.P. Morgan will convert three of its mutual funds into ETFs starting in April:
- The JPMorgan Inflation Managed Bond Fund will become the JPMorgan Inflation Managed Bond ETF (JCPI), listing on Cboe Global Markets, as of April 8.
- The JPMorgan Market Expansion Enhanced Index Fund will become the JPMorgan Market Expansion Enhanced Equity ETF (JMEE), listing on the NYSE Arca, as of May 6.
- The JPMorgan Realty Income Fund will become the JPMorgan Realty Income ETF (JPRE), listing on the NYSE Arca as of May 20.
- The JPMorgan International Research Enhanced Equity Fund will become the JPMorgan International Research Enhanced Equity ETF (JIRE), listing on the NYSE Arca, as of June 10.
New ETFs
There were eight launches and a number of other changes related to existing ETFs during the week ended March 25.
Among the launches, the Fairlead Tactical Sector ETF (TACK) debuted on the NYSE Arca Wednesday with an expense ratio of 0.70%.
TACK is an actively managed fund that rotates through State Street’s lineup of S&P 500 sector ETFs based on technical indicators. The fund can also invest in gold ETFs, along with long- and short-term Treasury ETFs at the advisor’s discretion.
The fund is the first ETF from Fairlead Strategies, a research firm led by Katie Stockton.
The First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) debuted on the Nasdaq also on Wednesday with a 0.65% expense ratio.
EKG follows an index from Lux Capital tracking companies involved in using digital tools for diagnostic or treatment purposes, and that have at least $500 million in market capitalization among other liquidity requirements. The fund will challenge the $218 million Global X Telemedicine & Digital Health ETF (EDOC) and the $12 million Fidelity Digital Health ETF (FDHT) within its thematic space.
EKG’s index has declined 48% in the last 12 months, compared to a 24.8% decline in EDOC.
Closures
2022 has been fairly slow for closures, with only about 15 completed so far this year. Roundhill Investments will add to that count, as it announced that the Roundhill Pro Sports, Media & Apparel ETF (MVP) and the Roundhill Streaming Services and Technology ETF (SUBZ) would see their last day of trading on April 6.
The two funds both originally launched in the first quarter of 2021. In the past few weeks, ProShares said it will be closing eight of its funds, and Transamerica announced it is pulling its five ETFs from the market.
Other Changes
A few funds have changes on the books for the coming months.
Effective March 24, the WisdomTree Floating Rate Treasury Fund (USFR) underwent a 1-for-2 reverse share split.
As of March 28, the RiverNorth Volition America Patriot ETF (FLDZ), which rolled out at the start of the year, will shorten its name to the RiverNorth Patriot ETF.
The Clockwise Capital Innovation ETF (CWC), which launched in late January of this year, will switch its ticker to TIME, effective April 1.
Finally, the FT Cboe Vest Growth-100 Buffer ETF – March (QMAR) has changed its name to the FT Cboe Vest Nasdaq-100 Buffer ETF – March. The change will bring the fund’s name into line with the other names of the funds in that particular series of defined outcome ETFs.
Contact Heather Bell at [email protected]
