ETF Week: UN Fund Debuts; PutWrite Filings
Impact Shares launched a fund based on UN standards, while WisdomTree looked to expand its put-write family.
Perhaps the biggest news this week was the launch of Impact Shares’ third socially responsible ETF; this one is based on standards put forth by the United Nations. UBS rolled out a new ETN offering monthly leverage, and Prudential’s PGIM unit debuted its second ETF, another actively managed bond fund. WisdomTree filed for a family of put-write ETFs, while KraneShares plans to launch a China-focused Robotics ETF. And the CFTC made an important announcement about bitcoin.
Below is roundup of the key developments in the ETF industry for the week starting Sept. 24, 2018:
Impact Shares Debuts 3rd ETF
Socially responsible-focused issuer Impact Shares has rolled out its third ETF on Monday. The firm partnered with the United Nations Capital Development Fund to bring the Impact Shares Sustainable Development Goals Global Equity ETF (SDGA) to market. The fund comes with an expense ratio of 0.76% and tracks an index provided by Morningstar. Impact Shares has also launched funds in partnership with the NAACP and the YWCA (read: UN-Based Socially Responsible ETF Debuts).
Prudential’s PGIM Launches Bond Fund
On Thursday, Prudential’s PGIM Investments unit rolled out its second ETF, an actively managed junk bond fund. The PGIM Active High Yield Bond ETF (PHYL) invests in government and corporate debt issued by U.S. and non-U.S. entities. PHYL comes with an expense ratio of 0.53% (read: Active Junk Bond ETF Launches).
WisdomTree Plans Put-Write Family
A recent flurry of filings from WisdomTree outlines the issuer’s plans for a full family of ETFs that offer exposure to put-write options strategies. The funds WisdomTree is looking to add to its lineup include:
- WisdomTree High Yield Corporate Bond PutWrite Strategy Fund
- WisdomTree Long-Term Treasury PutWrite Strategy Fund
- WisdomTree International PutWrite Strategy Fund
- WisdomTree Emerging Markets PutWrite Strategy Fund
The four proposed funds are actively managed and simply look to earn premiums by selling put options on ETFs covering their respective asset classes (read: PutWrite ETF Family Planned).
4 Closures Round Out September
Four ETFs saw their last day of trading on Monday, with another shutdown planned for Oct. 1.
The three funds issued by Direxion that closed on Monday include:
- Direxion Daily Silver Miners Index Bull 2X Shares (SHNY)
- Direxion Daily Emerging Markets Bond Bull 3X Shares (EMBU)
- PortfolioPlus Total Bond Market ETF (PPTB)
Meanwhile, CSOP shut down the CSOP China CSI 300 A-H Dynamic ETF (HAHA) the same day, and the AdvisorShares KIM Korea Equity ETF (KOR) is set to close Monday, Oct. 1. The year-to-date number of closures is close to surpassing last year’s record of 138 shutdowns, with a full quarter still remaining to 2018 (read: Another Wave Of ETF Closures).
UBS Adds To Leveraged ETN Lineup
On Wednesday, UBS rolled out another leveraged ETN under its ETRACS brand. The ETRACS 2xMonthly Pay Leveraged Preferred Stock ETN (PFFL) offers investors twice the monthly return of the Solactive Preferred Stock ETF Index and is set to mature on Sept. 25, 2048. The fund charges an expense ratio of 0.85% and tracks an index of two equally weighted preferred stock ETFs (read: Leveraged Preferred Stock ETN Debuts).
KraneShares Files For China Robotics ETF
KraneShares has filed for an ETF that will target companies likely to benefit from the growth of artificial intelligence and robotics technologies. The KraneShares Robotics and Artificial Intelligence Index ETF (KBOT) will invest in companies that generate at least 20% of their revenues from mainland China, no matter where they are actually domiciled or incorporated (read: New China Robotics ETF Filed).
CFTC Makes Bitcoin Decision
The long debate over what bitcoin actually is from a regulatory perspective—a currency, a commodity or a security—is finally over. The U.S. Commodity Futures Trading Commission officially called bitcoin a commodity, which means it’s essentially claiming it under its umbrella (read: CFTC’s Bitcoin Commodity Ruling & ETFs).
Contact Heather Bell at [email protected]
