Odds & Ends: Several ESG ETF Launch

The week was marked by 18 launches and the announcement of four more pending closures.

Among the launches was a pair of funds from values-based investment manager OneAscent that debuted on Thursday. The OneAscent Emerging Markets ETF (OAEM) and OneAscent International Equity ETF (OAIM) come with net expense ratios of 1.25% and 0.95%, respectively, and list on the NYSE Arca.

Both funds are actively managed and have socially responsible screens. The active management approach is based on where a company is in its life cycle, and also involves quantitative analysis and bottom-up research to select individual screens.

The socially responsible criteria reflect typical concerns around things like the treatment of employees, environmental impact and involvement in controversies, but also mention involvement in abortion and the production of addictive products such as pornography, gambling and tobacco.

On Tuesday, two firms rolled out ESG funds. The Carbon Strategy ETF (KARB) launched on the NYSE Arca with an expense ratio of 0.75%. The fund is actively managed and invests primarily in carbon credit futures tied to emission allowances issued for cap-and-trade programs that limit greenhouse gas emissions.

At the same time, the Newday Sustainable Development Equity ETF (SDGS) also launched on the NYSE Arca with an expense ratio of 0.75%. The fund is actively managed and invests in companies selected at the global level that comply with at least one of the United Nations Sustainable Development Goals—there are 17 in all.

Closures

Four closures were announced during the week. The Amplify Cleaner Living ETF (DTOX) and the Amplify Pure Junior Gold Miners ETF (JGLD) will see their last days of trading on Sept. 30, while the WBI BullBear Global Income ETF (WBII) and the WBI BullBear Trend Switch US 3000 Total Return ETF (WBIT) will no longer trade after Oct. 7. The ETF shutdowns bring the total expected this year by the end of October to 96.

Expense Ratio Changes

A number of expense ratio changes were reported during the week, all of them taking place around the start of September.

As of Aug. 28, the expense ratio of the ZEGA Buy and Hedge ETF (ZHDG) decreased from 1.02% to 0.98%. The next day, the Toews Agility Shares Managed Risk ETF’s (MRSK) expense ratio decreased from 0.99% to 0.98% while the expense ratio for the Toews Agility Shares Dynamic Tactical Income ETF (THY) decreased from 1.36% to 1.16%.

As of Sept. 1, another 21 ETFs underwent expense ratio changes. Four of which were increases:

• VanEck BDC Income ETF (BIZD), from 10.07% to 10.92%
• VanEck China Bond ETF (CBON), from 0.50% to 0.51%
• John Hancock Mortgage-Backed Securities ETF (JHMB), from 0.39% to 0.40%
• VanEck Mortgage REIT Income ETF (MORT), from 0.40% to 0.41%

At the same time, 17 funds underwent expense ratio decreases:

• iShares Cohen & Steers REIT ETF (ICF), from 0.33% to 0.32%
• iShares Global Clean Energy ETF (ICLN), from 0.42% to 0.40%
• iShares U.S. Utilities ETF (IDU), from 0.41% to 0.39%
• iShares U.S. Consumer Discretionary ETF (IYC), from 0.41% to 0.39%
• iShares U.S. Energy ETF (IYE), from 0.41% to 0.39%
• iShares U.S. Financials ETF (IYF), from 0.41% to 0.39%
• iShares U.S. Financial Services ETF (IYG), from 0.41% to 0.39%
• iShares U.S. Healthcare ETF (IYH), from 0.41% to 0.39%
• iShares U.S. Industrials ETF (IYJ), from 0.41% to 0.39%
• iShares U.S. Consumer Staples ETF (IYK), from 0.41% to 0.39%
• iShares U.S. Basic Materials ETF (IYM), from 0.41% to 0.39%
• iShares U.S. Transportation ETF (IYT), from 0.41% to 0.39%
• iShares U.S. Technology ETF (IYW), from 0.41% to 0.39%
• VanEck CEF Muni Income ETF (XMPT), from 2.32% to 1.81%
• VanEck Emerging Markets High Yield Bond ETF (HYEM), from 0.40% to 0.35%
• VanEck Muni Allocation ETF (MAAX), from 0.35% to 0.33%
• Teucrium Agricultural Strategy No K-1 ETF (TILL), from 1.49% to 0.89%

Other Changes

Finally, the VanEck Investment Grade Floating Rate ETF (FLTR) changed its name to the VanEck Floating Rate ETF as of Sept. 1. And as of Aug. 29, the Invesco Senior Loan ETF (BKLN) changed its index from the S&P/LSTA U.S. Leveraged Loan 100 Index to the Morningstar LSTA US Leveraged Loan 100 Index.

Contact Heather Bell at [email protected]