Recent ETF Filings Cover New Ground

Recent ETF Filings Cover New Ground

Some new ETF filings are for first-of-their-kind products.

Reviewed by: Heather Bell
Edited by: Heather Bell

Engine No. 1 is planning an actively managed ETF, the Engine No. 1 Transform Scarcity ETF, which will focus on companies that are leaders in addressing the problem of resources scarcity.  

That may mean changing how they use such resources; developing more sustainable alternatives and renewable technologies; and increasing efficiency through actions like recycling, according to the prospectus.  

The document notes that companies can be drawn from a wide range of industries.  

Charles Schwab has filed for what will be its 30th ETF. The Schwab High Yield Bond ETF (SCYB) will track the ICE BofA US Cash Pay High Yield Constrained Index, which covers below-investment-grade debt denominated in U.S. dollars, its prospectus says.  

iShares has filed for two ETFs targeting the copper and lithium mining industries, respectively. The iShares Copper and Metals Mining ETF will track a global index of companies engaged in the mining of copper and metal ore. As of mid-September 2022, the index had 37 constituent securities.  

Similarly, the iShares Lithium Miners and Producers ETF will track a global index of companies involved in the mining of lithium ore and the manufacture of lithium compounds. The fund’s underlying index included 38 components as of mid-September, according to the prospectus. 

Commodity Funds Planned 

Two issuers are planning broad commodity ETFs. The USCF Sustainable Commodity Strategy Fund (ZSC) will primarily target commodity-related derivatives that support three sustainability themes: agriculture, renewable energy and electrification. The themes will generally be equally weighted within the fund, and the commodities within them are determined by levels of demand related to sustainable uses, according to the prospectus.  

If the derivatives for any of the commodities are deemed unsuitable for investment, the fund will rely on related equities. ZSC also buys carbon credits in order to achieve a net-zero carbon footprint, the document says. It relies on a Cayman Islands subsidiary to hold its derivative investments.  

Simplify ETFs, an issuer known for its use of options strategies, has also filed for a commodity ETF. The Simplify Commodities Strategy No K-1 ETF is actively managed and primarily invests in futures contracts on individual commodities or commodity indexes. The fund can hold long or short positions, with a bias toward a net long exposure for the entire futures portfolio. The prospectus notes that the futures portfolio will be determined by Altis Partners (Jersey) Ltd. The “No K-1” in the fund’s name is achieved by holding the futures contracts via a Cayman Islands subsidiary.  

Strive Asset Management, which entered the ETF market last year, has filed for the Strive Developed Markets ETF. The fund will track the Bloomberg Developed Markets ex North America Large & Mid Cap Net Return Index, a benchmark weighted by free float market capitalization. According to the fund prospectus, at the end of last year, the index had exposure to more than 20 developed countries, primarily in Europe and Asia, via more than 700 securities. Strive’s website says the company looks to provide a way to invest in stocks that does not mix business with politics, and the prospectus notes that the issuer will generally use its shareholder votes to support proposals and board members that will “drive strong financial results and discipline,” among other qualities. Strive already offers a lineup of eight funds that implement similar voting practices. 

DoubleLine, another issuer that launched its first ETFs last year, is planning two more actively managed funds. The DoubleLine Commercial Real Estate ETF will primarily invest via a controlled risk approach in high quality commercial real estate instruments or vehicles with similar economic characteristics such as collateralized loan obligations or real estate mortgage Investment conduits. Meanwhile, the DoubleLine Mortgage ETF will invest primarily in residential mortgage-backed securities and similar vehicles that are rated Baa3/BBB- or higher, the prospectus says. 


Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.