Yield ETF Debuts As ‘ETF’ Fund Closes

June 20, 2019

Tuesday saw a launch and a closure amid a fairly uneventful week in the ETF space.

Tactical Income ETF

Belpointe Asset Management launched the Tactical Income ETF (TBND), an actively managed ETF of ETFs that covers asset classes known for their yields such as fixed income securities, real estate investment trusts, master limited partnerships and dividend-paying stocks.

The fund comes with an expense ratio of 1.59% after a waiver of 0.12%, and lists on the NYSE Arca.

TBND is subadvised by Tuttle Tactical Management, which relies on a model that tracks market trends, switching the fund into cash equivalents when a negative trend is detected. If there is a positive trend, the fund will invest in other ETFs that offer yield, the prospectus says.

The new ETF’s focus is similar to that of the GraniteShares HIPS U.S. High Income ETF (HIPS), which tracks an index but targets asset classes offering pass-through income. HIPS launched in January 2015 and has $7.6 million in assets under management.

TETF Closes
The ETF Industry Exposure & Financial Services ETF (TETF) saw its last day of trading on Tuesday. The fund, which covered ETF issuers, service providers and other companies that support the ETF industry, launched in April 2017.

While there was a lot of buzz about an ETF that covers the ETF industry, the fund, which was managed by Toroso Investments, never gathered significant assets, and had just $6 million in assets under management when its closure was announced.

There have been roughly 70 ETF closures since the start of 2019.

Contact Heather Bell at [email protected]

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