ETF Watch: WisdomTree Adds Dynamically Hedged Fund

November 03, 2016

iShares Expands ‘Core’ Family
In the wake of a round of expense ratio cuts, iShares has made some more changes to its “Core” lineup of low-priced ETFs aimed at advisors. It’s adding two funds to the Core brand, renaming one of its pre-existing ETFs and launching a new one.

The iShares Core U.S. REIT ETF (USRT) makes its debut today, whereas previously it has been trading as the iShares Real Estate 50 ETF (FTY). The most notable changes beyond the fund’s name are the reduction of its expense ratio and the adoption of a much broader index. As USRT, the fund comes with an expense ratio of 0.08% and a new index, the FTSE NAREIT Equity REITs Index. As FTY, the fund tracked the FTSE NAREIT Real Estate 50 Index and charged 0.48%.

The brand-new ETF launching today is the iShares Core 5-10 Year USD Bond ETF (IMTB), which offers intermediate-term bond exposure. It charges an expense ratio of 0.08% also, and will launch on NYSE Arca.

Goldman Adds Hedge VIP Fund
Goldman Sachs has added another ETF to its lineup with the launch of the Goldman Sachs Hedge Industry VIP ETF (GVIP) on the NYSE Arca. GVIP comes with an expense ratio of 0.45%

The fund invests in companies’ selected hedge funds for their long portfolios based on their 13F filings with the Securities and Exchange Commission. Essentially, the methodology considers the top 10 holdings of the members of a universe of hedge funds, and selects its components from the ones that appear the most frequently. The index holds 50 companies that are equal-dollar-weighted when the index is rebalanced.

The prospectus specifically states that GVIP’s index is not a hedge-fund replication strategy.

Barclays Revamps 2X Europe ETN
Barclays is rolling out a revised version of its Barclays ETN+FI Enhanced Europe 50 ETN (FEEU). The brand-new Barclays ETN+ FI Enhanced Europe 50 ETN, Series B (FLEU) tracks the same index, 50 blue-chip companies selected from the Stoxx Europe 600 Index. Like FEEU, it provides 2x leveraged exposure to its underlying index and has an exposure fee rate of 0.76%. However, FLEU’s total costs, like those of FEEU, can fluctuate significantly.

Contact Heather Bell at [email protected].



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