Odds & Ends: Innovator Adds Active Tactical ETF

November 18, 2022

The week saw 10 exchange-traded fund launches, many from prominent names in the ETF industry, including iShares, Dimensional, T. Rowe Price, Innovator Alpha Architect and more.  

Six ETFs launched on Thursday alone. Among them was the Innovator Gradient Tactical Rotation Strategy ETF (IGTR). Unlike most of Innovator’s recent launches, the new fund is not a defined or managed outcome ETF that relies on options strategies, but an actively managed global equity ETF that seeks to outperform the S&P Global BMI.  

The fund allocates assets among the U.S., other developed markets and emerging markets. It also allocates among four subsectors within each of those markets: high beta, momentum, neutral broad market and low volatility. Decisions are based mainly on momentum and reviewed monthly. The fund is subadvised by Gradient Investments and Penserra Capital Management, according to the prospectus. 

IGTR comes with an expense ratio of 0.80% and lists on the NYSE Arca. 

Also on Thursday, T. Rowe Price launched the T. Rowe Price Floating Rate ETF (TFLR), which is the issuer’s 10th ETF. The actively managed fund invests in floating rate loans and floating rate debt securities, including senior and subordinate issues. The majority of the portfolio will be denominated in U.S. dollars. TFLR comes with an expense ratio of 0.61% and lists on the NYSE Arca. 

That same day saw the debut of the Alpha Architect High Inflation and Deflation ETF (HIDE), an actively managed ETF that mainly allocates to other ETFs that cover intermediate-term U.S. Treasury bonds, real estate and commodities based on an in-house quantitative model that incorporates momentum and moving average data. HIDE’s goal is to protect investor capital during inflationary and deflationary periods via asset allocation. It comes with an expense ratio of 0.30% and lists on Cboe Global Markets. 

The Hartford Disciplined US Equity ETF (HDUS) tracks a similarly named in-house index that looks to allocate among exposures to the value, momentum and quality factors and at the same time increase exposure to dividend yield while limiting risk exposure. The index will typically include 300-400 components. HDUS has an expense ratio of 0.19% and lists on the NYSE Arca.  

Finally, on Thursday, Harbor Capital launched the Harbor Health Care ETF (MEDI), an actively managed fund that covers companies involved in all aspects of the health care industry from across the size spectrum. Holdings are selected based on management; insider ownership; how unique their market niche is; and financial controls and accounting processes. The fund is subadvised by Westfield Capital Management. It comes with an expense ratio of 0.80% and lists on the NYSE Arca.  

On Wednesday, Federated Hermes debuted the Federated Hermes U.S. Strategic Dividend ETF (FDV), its third ETF. The actively managed fund invests mainly in U.S. large- and midcap stocks that pay out high dividends and are deemed likely to increase their dividend payments. FDV has an expense ratio of 0.50% and lists on the NYSE Arca. 

Tuesday saw the rollout of two new funds. The actively managed Simplify Short Term Treasury Futures Strategy ETF (TUA) aims to match or outperform the ICE US Treasury 7-10 Year Bond Index during the calendar year, according to the prospectus. It does this mainly by investing in derivatives tied to U.S. Treasury futures as well as Treasury securities and ETFs that invest in them. The portfolio also includes an allocation to cash, cashlike instruments and high quality fixed income vehicles that serve as collateral. TUA comes with an expense ratio of 0.15% and lists on the NYSE Arca.  

Finally, F/m Investments launched the US Treasury 12 Month Bill ETF (OBIL), which tracks the ICE BofA US 1-Year Treasury Bill Index. The underlying benchmark buys a single issue of the U.S. Treasury 12-month Treasury bill and holds it for a month before rolling into the next 12-month Treasury bill issued by the U.S. government. The fund comes with an expense ratio of 0.15% and lists on the Nasdaq stock exchange. 

Closures 

The week included the announcement of two additional closures. The Ecofin Digital Payments Infrastructure Fund (ETPA) will cease trading after Nov. 28. The fund launched in early 2019.  

Meanwhile, the Invesco BulletShares 2022 USD Emerging Markets Debt ETF (BSBE) will reach its maturity on Dec. 31 and cease to trade.  

And as of today, the Inspire Faithward Large Cap Momentum ETF (FEVR) will no longer trade. It launched in December 2020.  

Ticker Change 

Finally, today also saw the Global X Interest Rate Hedge ETF (IRHG) change its ticker to RATE.  

 

Contact Heather Bell at [email protected] 

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