ETF Watch: RiverFront Adds Two Funds

RiverFront follows up its recent launches with two more active funds.

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

RiverFront Investment Group has added two more actively managed ETFs to its lineup today, launching them on the NYSE Arca. The RiverFront Dynamic Unconstrained Income ETF (RFUN) and RiverFront Dynamic Core Income ETF (RFCI) both come with expense ratios of 0.51%.

RFUN invests in fixed-income securities across a range of asset classes, maturities, ratings and currencies. The fund sets a strategic allocation designed for a five-year time horizon that seeks to limit downside and achieve upside returns. The model is based on historical market behavior and is incorporated in a mean-reversion optimization approach that determines the weightings of the different fixed-income asset classes, the prospectus said.

Like RFUN, RFCI starts off by establishing a strategic allocation across fixed-income classes for a five-year time horizon with the intention of seeking a risk and return balance. From there, the fund’s strategy tactically adjusts the allocations to respond to market conditions. That strategic allocation is adjusted annually and relies on a quantitative approach. Like RFUN, RFCI uses historical models and a mean-reversion optimization approach.

Both ETFs have very few limitations on the type of fixed-income securities they can invest in or the duration or maturity of the portfolio. 

iShares Files For Small Cap Min Vol Fund

BlackRock’s iShares arm has filed for a small-cap version of the $13.7 billion iShares Edge MSCI Min Vol USA ETF (USMV | A-69). The iShares Edge MSCI Min Vol USA Small-Cap ETF will track an index of U.S. small-cap stocks that represent roughly 14% of the float-adjusted market capitalization of the United States; however, weightings will be based on volatility levels.

The prospectus notes that the index is based on a Barra multifactor risk model, so momentum, size, value, growth, liquidity and financial leverage also play a role in component weightings.

A recent article by InsideETFs CEO Matt Hougan, “The Most Important ETF of 2016,” discusses the fund’s impact on the ETF space and the appeal of the product to investors.

The filing did not include an expense ratio, listing exchange or ticker.

Contact Heather Bell at [email protected].

 

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