ETF Odds & Ends: Procure Adds Disaster Recovery Fund

June 03, 2022

The week after the Memorial Day holiday was fairly quiet, with only two new ETFs entering the market. One of them was the Procure Disaster Recovery Strategy ETF (FEMA), which rolled out on June 1. It lists on the Nasdaq with an expense ratio of 0.75%.  

Global in scope, FEMA tracks an equally weighted index that covers the stock of companies that operate in the home improvement space, provide generators and batteries, or that within the last five years have been involved in natural disaster relief via government contracts, according to its prospectus. 

 

Index Changes 

The week also saw a number of changes to the indexes underlying various ETFs. Most notably, BlackRock’s iShares arm on Wednesday switched the iShares MSCI Russia ETF (ERUS) to actively managed; the fund had previously tracked the MSCI Russia 25/50 Index.  

ERUS has been closed to trading since early March, in the wake of Russia’s invasion of Ukraine. BlackRock is already planning to close its London-listed ETFs that invest in Russia later this month, so there was some question of what the issuer would do with its U.S.-listed ETF. 

By switching to active management, iShares will be allowing the fund managers greater agility in a complicated market if ERUS begins trading again.  

At the same time, the iShares MSCI USA Multifactor ETF (LRGF) changed its name to the iShares US Equity Factor ETF and its index from the MSCI USA Diversified Multiple-Factor Index to the STOXX US Equity Factor Index. The iShares MSCI Intl Multifactor ETF (INTF) changed its name to the iShares International Equity Factor ETF and its index from the MSCI World ex USA Diversified Multiple-Factor Index to the STOXX US Equity Factor Index. 

On Thursday, four ETFs offered by Merlyn.AI changed their underlying indexes: 

And as of Friday, three Direxion ETFs swapped out their indexes: 

Four Franklin Templeton ETFs are set to undergo major changes on or about Aug. 1 as follows: 

  • The Franklin LibertyQ Global Dividend ETF (FLQD) will change is name and ticker to the Franklin U.S. Core Dividend Tilt Index ETF (UDIV) and its index from the LibertyQ Global Dividend Index to the Morningstar US Dividend Enhanced Select Index. 
  • The Franklin LibertyQ Emerging Markets ETF (FLQE) will change its name and ticker to the Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) and its index from the LibertyQ Emerging Markets Index to the Morningstar Emerging Markets Dividend Enhanced Select Index. 
  • The Franklin LibertyQ Global Equity ETF (FLQG) will change its name and ticker to the Franklin U.S. Equity Index ETF (USPX) and its index from the LibertyQ Global Equity Index to the Morningstar US Target Market Exposure Index. 
  • The Franklin LibertyQ International Equity Hedged ETF (FLQH) will change its name to the Franklin International Core Dividend Tilt Index ETF (DIVI) and its index from the LibertyQ International Equity Hedged Index to the Morningstar Developed Markets ex-North America Dividend Enhanced Select Index. 

Another Closure 

June 10 will be the last day of trading for the iClima Climate Change Solutions ETF (CLMA). The fund launched in July 2021 and has not gathered significant assets.  

Its closure brings the total number of shutdowns by the end of June to 39. That compares with 23 for the first six months of last year.   

 

Contact Heather Bell at [email protected] 

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