ETF Watch: 2x Mortgage REIT ETN Debuts

Credit Suisse ETN targets monthly return rather than daily.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Credit Suisse today rolled out another leveraged ETN that provides exposure to the mortgage REIT space. The Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT Exchange Traded Notes (REML) due July 11, 2036, rolled out on the NYSE Arca with a tracking fee of 0.50%.

The ETN is tied to the FTSE NAREIT All Mortgage Capped Index, which covers U.S. REITs, and it offers twice the monthly performance of the underlying.

UBS has a similar fund, the $32 million Etracs Monthly Pay 2xLeveraged MSCI US REIT Index ETN (LRET), which comes with an expense ratio of 0.85%.

SSgA Plans Active Bond Sector Rotation Fund

State Street Global Advisors recently filed for an actively managed sector rotation ETF that will invest in other ETFs covering different fixed-income segments. The SPDR SSGA Fixed Income Sector Rotation ETF will aim to achieve total return by focusing on yield- and income-generating assets, the prospectus said.

The fund invests in other ETFs that provide exposure to U.S.-government-backed and U.S. corporate debt, mortgage-backed securities, high-yield debt and cash equivalents, as well as international government debt. It can also invest in fixed-income derivatives.

Allocations are made based on the expected returns and risks associated with the different sectors of the fixed-income space and with the input of a proprietary quantitative model that generates one-month forecasts using macroeconomic, financial and market data, the prospectus said. However, the fund’s advisor can make decisions independent of the model if they feel it does not incorporate all the relevant data.

The filing indicated the fund will launch on the Bats Exchange, which owns ETF.com. However, the document did not include an expense ratio or ticker.

Contact Heather Bell at [email protected].

 

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