Although modifications to existing exchange-traded funds were scarce during the week, launches were rolling along, with 18 funds making their debuts.
Among them was the Logan Capital Broad Innovative Growth ETF (LCLG), which is the first launch from RIA Logan Capital Management; it debuted on Monday. The fund is actively managed via an algorithm incorporating multiple factors that target companies using technology and innovative ideas to gain a competitive edge over their peers. LCLG comes with an expense ratio of 0.99% and lists on the NYSE Arca.
At the same time, the Touchstone Ultra Short Income ETF (TUSI) was the second launch from Touchstone Investments. The fund lists on Cboe Global Markets and has an expense ratio of 0.34%. TUSI is actively managed and invests mainly in investment-grade fixed income securities, though it can invest up to 15% of its assets in below-investment-grade debt securities. The prospectus notes that the portfolio will have an emphasis on structured products over other types of debt. Overall, the fund’s manager will look to keep TUSI’s effective duration to one year or less.
Tuesday saw the rollout of the JPMorgan Active Growth ETF (JGRO) on the NYSE Arca. The actively managed fund primarily targets U.S. large cap stocks based on their potential for strong earnings growth. JGRO also incorporates ESG criteria into its stock selection process. The ETF comes with an expense ratio of 0.44%.
Direxion rounded out the launches for the week on Wednesday with the debut of the Direxion Daily Electric and Autonomous Vehicles Bull 2x Shares (EVAV). The fund offers twice the daily return of the Indxx US Electric and Autonomous Vehicles Index. It comes with an expense ratio of 1.07% and lists on the NYSE Arca.
The week also featured significant closure activity. The AlphaClone Alternative Alpha ETF (ALFA) will halt creations as of Aug. 19, with the fund’s last day of trading set for Aug. 31. The ETF, which takes positions in U.S. stocks based on the investment choices of hedge fund managers, rolled out in 2012. As of this week, it had roughly $25 million in assets under management.
J.P. Morgan is closing two of its ETFs, which are set to see their last day of trading on Sept. 6. The JPMorgan U.S. Minimum Volatility ETF (JMIN) launched in November 2017 and has roughly $37 million in AUM. The JPMorgan U.S. Dividend ETF (JDIV) launched at the same time but has $76 million in assets under management—a respectable amount of assets, but a drop in the bucket relative to JPMorgan’s total assets.
Two ETNs are also closing. The Elements Spectrum Large Cap US Sector Momentum Index ETN (EEH) has been around since August 2007, but currently has less than $2 million in AUM. It was called on Aug. 8 after its last day of trading on Aug. 5.
Similarly, the iPath Shiller CAPE ETN (CAPD), for which creations were suspended in the spring until Aug. 1, is set to be called as of Oct. 12, the product’s maturity date. The ETN currently has roughly $280 million in assets.
Contact Heather Bell at [email protected]