IQ Enhanced Core Plus Bond U.S. ETF (AGGP)
Like the aforementioned FVC, the IQ Enhanced Core Plus Bond U.S. ETF (AGGP) weights its holdings based on momentum. The difference is that AGGP does it in the fixed-income space.
AGGP holds other ETFs to get its exposure to the broad spectrum of fixed-income securities, from Treasurys to mortgage-backed securities to corporate bonds to dollar-denominated emerging market bonds. The caveat is that U.S. high-yield debt can't account for more than 25% of the fund's holdings, while emerging market debt can't account for more than 5%.
So far, investors have given a vote of confidence to the strategy by adding $209 million to the fund since its launch in May.
Currently, half of AGGP's weighting is in two ETFs: the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the Vanguard Mortgage-Backed Securities ETF (VMBS).
In its short three months on the market, AGGP has returned 2.1%, a bit higher than the 1.5% return for the iShares Core U.S. Aggregate Bond ETF (AGG), which holds U.S. investment-grade bonds exclusively.
Returns For AGGP, AGG Since May 10
Seven Biggest ETF Launches Of 2016
|Ticker||Fund||YTD Inflows ($M)|
|FIEE||UBS AG FI Enhanced Europe 50 ETN||356.40|
|DDWM||WisdomTree Dynamic Currency Hedged International Equity Fund||264.67|
|SHE||SPDR SSGA Gender Diversity Index ETF||248.99|
|FVC||First Trust Dorsey Wright Dynamic Focus 5 ETF||186.23|
|AGGP||IQ Enhanced Core Plus Bond U.S. ETF||143.71|
|FIHD||UBS AG FI Enhanced Global High Yield ETN||102.68|
|VIGI||Vanguard International Dividend Appreciation ETF||100.87|
Contact Sumit Roy at [email protected].