ETF Watch: WBI Adds Tactical Rotation Fund

July 27, 2016

Absolute Shares rolled out its 11th ETF today. The actively managed WBI Tactical Rotation Shares (WBIR) launched on the NYSE Arca and comes with an expense ratio of 1.43%.

WBIR is a sort of go-anywhere fund that can invest in other exchange-traded products, in addition to other vehicles. The fund will cover various segments of the fixed-income markets, commodity, currencies, hedging strategies and alternative asset classes, according to the prospectus.

The fund will rely on quantitative computer models to target investments that will produce attractive returns with lower-than-average volatility, no matter the market conditions.

Direxion Debuts 2 Funds
Direxion has rolled out two ETFs on the NYSE Arca providing leveraged and inverse exposure to the European financial sector and the gold miners industry.

The Direxion Daily European Financials Bull 2X Shares (EUFL) offers twice the daily return of the MSCI Europe Financials Index. It comes with an expense ratio of 0.94%.

The Direxion Daily Gold Miners Index Bear 1X Shares (MELT) provides the inverse of the daily return of the NYSE Arca Gold Miners Index. The fund joins two other Direxion ETFs offering three times the daily return and the inverse of the daily return of the same index, the $1.6 billion Direxion Daily Gold Miners Index Bull 3x Shares (NUGT) and the $326 million Direxion Daily Gold Miners Bear 3x Shares (DUST).

MELT charges an expense ratio of 0.47%.

18 Funds To Close In August

Two firms have announced multiple closures, with all of the products that are shutting down set to cease trading in August. UBS is closing down one of the bespoke ETNs it runs for Fisher Investments, along with seven of its Etracs ETNs, while ProShares is closing nine of its leveraged and geared ETFs.  

The UBS products include UBS AG FI Enhanced Big Cap Growth ETN (FBG), a bespoke ETN that offers geared exposure to the Russell 1000 Growth Index. The ETN’s closure is a bit puzzling given that it has more than $160 million in assets under management. It’s also similar to another UBS ETN designed for Fisher, the $948 million UBS AG FI Enhanced Large Cap Growth ETN (FBGX). FBG’s last expected day of trading is August 18.

Four other Etracs products are set to have their last day of trading on Aug. 16; they include the following:

  • Etracs Wells Fargo MLP Ex-Energy ETN (FMLP)
  • Etracs Wells Fargo MLP Index ETN (MLPW)
  • Etracs Monthly Pay 2XLeveraged Dow Jones International Real Estate ETN (RWXL)
  • Etracs Diversified High Income ETN (DVHI)

Four more will also have their last day of trading on Aug. 18, along with FBG:

  • Etracs ISE Exclusively Homebuilders ETN (HOMX)
  • Etracs Daily Long-Short VIX ETN (XVIX)
  • Etracs S&P 500 Gold Hedged Index ETN (SPGH)
  • Etracs S&P 500 VEQTOR Switch Index ETN (VQTS)

The nine ETNs represent roughly one-fifth of UBS’ total ETN lineup, though except for FBG, they all have assets under management between $9 million and $25 million.

ProShares' Lineup

The ProShares funds are scheduled to cease trading on Aug. 25. The nine ETFs include a somewhat random sampling of regional, fixed-income, commodity and industry leveraged and inverse funds. The largest in terms of assets is the $11 million ProShares Ultra Bloomberg Commodity ETF (UCD), while the rest all have less than $7 million in assets.

The remaining eight funds include the following:

  • ProShares Ultra MSCI Pacific Ex-Japan (UXJ)
  • ProShares Ultra Homebuilders & Supplies (HBU)
  • ProShares Ultra Investment Grade Corporate (IGU)
  • ProShares Ultra Investment Grade Corporate (GDJS)
  • ProShares UltraShort Bloomberg Commodity (CMD)
  • ProShares UltraShort MSCI Pacific ex-Japan (JPX)
  • ProShares UltraShort Homebuilders & Supplies (HBZ)
  • ProShares Short Investment Grade Corporate (IGS)

With 40 closures already reported for 2016 year-to-date, the addition of 18 more means an increase in exchnge-traded product closures of almost 50%.

Contact Heather Bell at [email protected].

 

Find your next ETF

Reset All