Odds & Ends: Vanguard Patent Expires

Fund structure prominently featured in the news last week as Vanguard’s patent on exchange-traded funds as a share class of mutual funds expired Tuesday. However, only one company has applied to the SEC for the same ’40 Act exemption that Vanguard did, as uncertainty over the stipulations the SEC will put on similar exemptions reigns.  

An alternative to Vanguard’s structure was highlighted when Global X converted two of its emerging market stock mutual funds to ETFs on Monday, the Global X Emerging Markets Great Consumer ETF (EMC) and the Global X Emerging Markets ETF (EMM). AllianceBernstein also converted a high-yield bond ETF the same day, the AB High Yield ETF (HYFI). 

Also in the emerging market space was Thursday’s launch of the Putnam Emerging Markets ex-China ETF (PEMX) an actively managed fund that invests in emerging market stocks from countries besides China. 

Two funds launched Thursday with different relations to machine learning. The Roundhill Generative AI & Technology ETF (CHAT), an actively managed stock fund that invests in companies involved in text and image generating AI, while the Euclidean Fundamental Value ETF (ECML) uses machine learning algorithms to pursue a value investing strategy. 

Two unusual asset class ETFs launched Friday, with the ICE U.S. Carbon Neutral Power Futures Index ETF (AMPD) investing in electricity futures and the X-Square Municipal Income Tax Free ETF (ZTAX) invests in muni bonds from Puerto Rico and other U.S. territories. 

The KraneShares Global Carbon Transformation ETF (KGHG) changed its daily creation status on Wednesday, which was also the last day of trading for it. 

Invesco will be changing the tickers of all its equal-weight sector ETFs, effective June 6: 

• Invesco S&P 500 Equal Weight Communication Services ETF (EWCO); ticker will change to RSPC  
• Invesco S&P 500 Equal Weight Real Estate ETF (EWRE); ticker will change to RSPR 
• Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD); ticker will change to RSPD 
• Invesco S&P 500 Equal Weight Industrials ETF (RGI); ticker will change to RSPN 
• Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS); ticker will change to RSPS 
• Invesco S&P 500 Equal Weight Materials ETF (RTM); ticker will change to RSPM 
• Invesco S&P 500 Equal Weight Energy ETF (RYE); ticker will change to RSPG 
• Invesco S&P 500 Equal Weight Financials ETF (RYF); ticker will change to RSPF 
• Invesco S&P 500 Equal Weight Health Care ETF (RYH); ticker will change to RSPH 
• Invesco S&P 500 Equal Weight Technology ETF (RYT); ticker will change to RSPT 
• Invesco S&P 500 Equal Weight Utilities ETF (RYU); ticker will change to RSPU 

The Franklin Responsibly Sourced Gold ETF changed its ticker to FGLD. The Franklin FTSE Europe Hedged ETF (FLEH), is changing its name and ticker to the Franklin FTSE Eurozone ETF (FLEU), effective Aug. 1. It will also change its tracked index from the FTSE Developed Europe RIC Capped Hedged Index to the FTSE Developed Eurozone Index. 

Finally, two Direxion leveraged ETFs announced their undergoing 10:1 reverse splits effective June 5: 

• Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV) 
• Direxion Daily Regional Banks Bull 3X Shares (DPST) 

Contact Gabe Alpert at [email protected]