ETF Watch: Natixis Launches Min Vol Fund

October 27, 2016

Natixis Global Asset Management has rolled out its first U.S.-listed ETF with the launch of the Natixis Seeyond International Minimum Volatility ETF (MVIN) on the NYSE Arca. MVIN comes with an expense ratio of 0.55%.

Unlike most minimum-volatility ETFs, MVIN is actively managed, and uses both quantitative and qualitative criteria to build a portfolio of non-U.S. developed-market equities that has a lower volatility than the fund’s selection universe. MVIN’s managers take into consideration an individual security’s volatility, correlations with other securities and its weight within the portfolio, according to the prospectus.

The fund’s managers also consider company-specific risk, portfolio construction and implementation issues.

Natixis is a Paris-based company that also operates Ossiam, a family of ETFs that trade on European exchanges. 

200 New Funds Launched This Year

The year 2015 was a record-breaker when it comes to ETF launches, with 284 ETFs entering the market, the most ETFs to launch in a single year since 2011. This year is unlikely to break that record, but as 2016 verges on 200 launches, with two months left to go until 2017, it looks like 2016 will at least see a respectable finish.

In 2015, nearly 45 funds launched during November and December, so we could be in for a very active few months, even if we see half that number of rollouts. Closures are likely the bigger story, with the current tally well past 100 shutdowns, a significant number, even if it isn’t necessarily a record.

Still, 2016 hasn’t been unextraordinary: Some 40 ETFs shut down in August, with almost 25 more closing in September. Those are rather staggering numbers for closures, which usually only number a few every month.

However, September also saw 41 launches, making it the most prolific month for ETF debuts in recent memory. Even in 2015, with its record number of total launches, the month with the highest number of launches was July, with 37 rolling out in the U.S.

In general though, the increase in closures, and the slight slowdown in launches, suggests that the ETF industry is reaching a new stage of maturity.  

Contact Heather Bell at [email protected].

 

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