Best New ETF
Awarded to the most important ETF launched in 2015.
Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognize an ETF that opens new areas of the market, lowers costs, drives risk-adjusted performance or provides innovative exposures not previously available to most investors. Only ETFs with inception dates after Jan. 1, 2015, are eligible.
· Goldman Sachs ActiveBeta U.S. Large Cap Equity (GSLC)
Goldman Sachs shocked the world in September 2015 when it launched GSLC. Why? The fund—combining exposure to four different factors in a single ETF—debuted with an expense ratio of just 0.09%, making it by far the cheapest “smart beta” ETF on the market.
· iShares Exponential Technologies (XT)
A unique partnership between Edelman Financial and iShares, XT represents a new take on technology investing, focusing on companies both developing and using technology to fundamentally change the way things work. Holding everything from biotech to Netflix, it’s a unique play on the economy of tomorrow.
· John Hancock Multifactor Large Cap (JHML)
JHML is the flagship ETF in a new suite of low-cost ETFs developed by John Hancock in partnership with Dimensional Fund Advisors. The multifactor methodology—emphasizing value as well as profit factors—will be familiar to fans of DFA, which has traditionally only made funds available to advisors operating inside the DFA program.
· Pacer Trendpilot 750 (PTLC)
There is nothing revolutionary about PTLC’s methodology. It provides broad-based exposure to the U.S. equity market, and rotates into cash when the going gets tough. But packaging that strategy into an ETF both improves the tax efficiency and enhances the discipline. Investors have rewarded it with more than $280 million in assets.
· SPDR DoubleLine Total Return Tactical (TOTL)
The fastest-growing new ETF to launch in 2015, TOTL delivers bond guru Jeffrey Gundlach’s active management acumen in an easy-to-buy ETF wrapper. While it’s been a difficult market for bonds in general, TOTL has managed to outperform the market significantly since launch.
Most Innovative New ETF
Awarded to the most groundbreaking and disruptive ETF launched in 2015. This is an ETF that is pushing the envelope in terms of what kinds of exposure can be packaged into an ETF.
· FlexShares Credit-Scored U.S. Long Corporate Bond (LKOR)
The financial crisis of 2008 proved that the credit ratings offered by S&P, Moody’s and Fitch are significantly flawed. LKOR solves that problem, offering broad-based exposure to the U.S. corporate bond market while relying on Northern Trust’s proprietary credit ratings system to select the best bonds. With an expense ratio of just 0.22%, what’s not to like?
· IQ 50 Percent Hedged FTSE International (HFXI)
It’s incredibly difficult to predict the direction of currency movements. And while unhedged exposure leaves you vulnerable to a rising dollar, the oh-so-hot currency hedged ETFs leave you equally exposed to a falling greenback. HFXI solves for that by offering a 50/50 split; perfect for those with no opinion on where currencies are heading.
· iShares Exponential Technology ETF (XT)
One of the most popular ETF to launch in 2015, XT is innovative in two ways. First, it was developed by iShares in partnership with Edelman Financial, which helped ensure a successful launch. Second, it is one of the only tech funds to emphasize both the developers and users of technology. And hey – it’s focused on the most innovative part of the economy.
· Pacer Autopilot Hedged European (PAEU)
PAEU tracks an index of large- and midcap eurozone equities selected and weighted by market cap, and toggles in or out of a currency hedge on a monthly basis based on EUR/USD momentum. It was the first ETF to offer a dynamic currency hedge.
· ProShares S&P 500 Ex-Energy (SPXE)
In each market correction, one industry leads the way down. That was true of the “tech bubble” of 2000 and the “financial crisis” of 2008. For those concerned the oil glut will keep energy stocks down, SPXE offers a solution, giving broad-based exposure to U.S. equities without exposure to the dogged energy sector.