ETF Odds & Ends: Strong Launch Week

The week included mutual fund-to-ETF conversions and multiple launches from newcomers.

During the week of Nov. 15, a total of 15 ETFs launched, a healthy number for any time of the year. Those launches included the third bitcoin futures ETF, as well as four new bond ETFs from Dimensional Fund Advisors.

Additionally, on Monday, Adaptive converted another two mutual funds into ETFs. The Adaptive High Income ETF (AHHX) is actively managed and invests in a wide range of fixed income instruments, targeting those offering higher yields. It can also short the junk bond space if the managers believe market conditions warrant such a move.

Meanwhile, the RH Hedged Multi-Asset Income ETF (AMAX) is also actively managed and invests mainly in mutual funds and ETFs covering fixed income using a variety of market factors and valuations.

AHHX comes with an expense ratio of 0.92%, while AMAX charges 0.96%. Both funds list on the NYSE Arca.

On Tuesday, OneAscent Investments made its debut on the ETF market with the launch of the OneAscent Large Cap Core ETF (OALC). The fund trades on the NYSE Arca with an expense ratio of 0.76%. 

The Christian values-based investment advisor actively selects companies with more than $5 billion in market capitalization, and screens out companies deemed to aid in abortions, produce pornography, tobacco or gaming products, along with companies that engage in predatory lending or human rights violations. The fund is fully transparent. 

On the same day, the iBET Sports Betting and Gaming ETF (IBET) also rolled out. The fund is actively managed and focuses on the sports betting and gaming industry, selecting companies that provide the infrastructure, platforms, equipment and venues in that area. It lists on the Nasdaq and has an expense ratio of 0.79%. 

The McElhenny Sheffield Managed Risk ETF – United States (MSMR) and the Goose Hollow Tactical Allocation ETF (GHTA) launched Wednesday on the Cboe Global Markets, with both charging a 0.99% expense ratio for active management in investing into other ETFs. Both are fully transparent.

MSMR uses an in-house strategy that mixes sector rotation and trend allocation, while GHTA is free to invest in a blend of equity and fixed income ETFs that slightly leans toward bond allocation.

At the same time, First Trust added to its stable of 21 fixed income ETFs with the launch of its First Trust Limited Duration Investment Grade Corporate ETF (FSIG). The actively managed fund debuted on the NYSE Arca Thursday, and charges an expense ratio of 0.45% after a single-year fee waiver of 10 basis points is factored in.

FSIG seeks to produce a portfolio within a year of the weighted average duration of the Bloomberg U.S. Corporate 1-5 Year Index while delivering current income.

Elsewhere in fixed income launches, the American Century Select High Yield ETF (AHYB) also debuted Thursday on the NYSE Arca with a 0.45% expense ratio. The actively managed ETF picks high yield bonds from companies expected to generate sustainable cash flows over time and eventually receive a credit upgrade.

Universal Value Advisors launched its second ETF with the white-label issuer Spinnaker ETF Trust on Friday, five years after debuting an active bond fund.

The UVA Dividend Value ETF (UVDV) launched on the NYSE Arca Friday, carrying an initial expense ratio of 0.80%. That cost will rise to a hefty 1.67% after a partial fee waiver expires at the end of October 2022.

UVDV is an actively managed fund that seeks to invest in undervalued dividend-paying stocks, along with options and other derivatives.

Name/Index Changes

Beyond launches, a number of funds are changing their names or underlying indexes. The Nationwide Risk-Managed Income ETF (NUSI) will change its name to the Nationwide Nasdaq-100 Risk-Managed Income ETF effective Dec. 10 such that the fund’s name reflects the index driving its strategy.

And as of today, the LifeGoal General Conservative Investment ETF (SAVN) changed its name to the LifeGoal Conservative Wealth Builder ETF.

Effective Nov. 29, four TrimTabs ETFs will undergo name and/or index changes as follows:

• The TrimTabs Donoghue Forlines Tactical High Yield ETF (DFHY) will change its name to the Donoghue Forlines Tactical High Yield ETF and its index will change from the TrimTabs Donoghue Forlines Tactical High Yield Index to the FCF Tactical High Yield Index.
• The TrimTabs Donoghue Forlines Risk Managed Innovation ETF (DFNV) will change its name to the Donoghue Forlines Risk Managed Innovation ETF and its index from the TrimTabs Donoghue Forlines Risk Managed Free Cash Flow Innovation Index to the FCF Risk Managed Quality Innovation Index.
• The TrimTabs U.S. Free Cash Flow Quality ETF (TTAC) will change its name to the FCF US Quality ETF.
• The TrimTabs International Free Cash Flow Quality ETF (TTAI) will change its name to the FCF International Quality ETF.

Finally, another closure has been announced. The KFA Dynamic Fixed Income ETF (KDFI),  which launched in late 2019, will see its last day of trading on Dec. 3.

Contact Heather Bell at [email protected]