Odds & Ends: It’s All About the ETF Launches
The week saw 19 funds debut, with Thursday particularly busy.
It was a brisk week for launches that included the debut of new issuer Emerge. In addition to a total of five ETFs from the new issuer, there were launches from Harbor Capital, Invesco and Defiance.
Two of the Emerge ETFs launched on Friday. The funds in Emerge’s EMPWR family are all actively managed by female managers and include an ESG overlay. The Emerge EMPWR Sustainable Select Growth Equity ETF (EMGC) and the Emerge EMPWR Unified Sustainable Equity ETF (EMPW) both list on Cboe Global Markets and come with expense ratios of 0.95%.
While EMGC targets companies that pay high dividends and have the potential for significant growth, EMPW essentially combines the insights of the subadvisors of the full EMPWR ETF family. The fund combines strategies that focus on dividend yield, equity growth, global core and emerging markets, with Emerge determining how to allocate the fund’s assets among the individual subadvisors.
Thursday saw a total of 11 launches. Among the rollouts that took place was the Harbor International Compounders ETF (OSEA), which launched on the NYSE Arca and has an expense ratio of 0.55%. The actively managed ETF targets non-U.S. stocks that are deemed to be “compounders” by C WorldWide Asset Management, which serves as the fund’s subadvisor. The firm thinks such companies should exhibit sustainable growth and compound earnings over the coming five years and beyond.
Invesco also added to its lineup of target maturity bond ETFs that invest in bonds maturing in a designated year. The Invesco BulletShares 2032 Corporate Bond ETF (BCSW) and Invesco BulletShares 2030 High Yield Corporate Bond ETF (BSJU) list on the Nasdaq stock market and come with expense ratios of 0.10% and 0.42%, respectively. While BCSW holds investment-grade corporate bonds denominated in U.S. dollars that mature in 2032, BSJU holds junk bonds maturing in 2030.
Finally, Defiance ETFs launched the Defiance Daily Short Digitizing the Economy ETF (IBIT) which will look to provide investors with the inverse returns of the $544 million Amplify Transformational Data Sharing ETF (BLOK) via swap agreements and short sales on the reference ETF. IBIT comes with a rather steep expense ratio of 4.70%, which includes 95 basis points for annual fund operating expenses, and lists on the Nasdaq stock market.
Other Developments
In addition to the numerous fund launches, there were a few other actions that occurred during the week.
On Tuesday, three scheduled ETF closures too place. The affected funds are as follows:
- JPMorgan U.S. Dividend ETF (JDIV)
- JPMorgan U.S. Minimum Volatility ETF (JMIN)
- Premise Capital Diversified Tactical ETF (TCTL)
And on Friday, the American Century Quality Diversified International ETF (QINT) changed its index from the Alpha Vee American Century Diversified International Equity Index to the American Century Quality Diversified International Equity Index.
Contact Heather Bell at [email protected]
