ETF Of The Year: VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
Awarded to the most important ETF launched in 2016—importance being measured by the overall contribution to positive investor outcomes.
ANGL, in a completely unassuming way, delivered investors outsized returns during the year, outperforming the major bond funds in the high-yield space by targeting a very specific slice of that market. The fund’s simple, cap-weighted methodology is designed to exploit the inefficiency that occurs when a bond is downgraded. The fund did exactly what it was supposed to do in 2016, and did it very well indeed.
- Fidelity Total Bond Fund (FBND)
- Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC)
- iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
- Vanguard Total Market Index Fund (VTI)
Best New International/Global Equity ETF: WisdomTree Dynamic Currency Hedged International Fund (DDWM)
Awarded to the most important international or global equity ETF launched in 2016.
The WisdomTree Dynamic Currency Hedged International Fund (DDWM) took currency hedging to a new level in 2016, by adjusting the hedge up or down depending on its signal indicators. Instead of a sledgehammer approach, DDWM offers a scalpel solution by changing how much the fund is hedged (anywhere from 0-100%) using three equal-weighted signals: differences in interest rates (the cost of the hedge); momentum (based on 10- and 240-day moving averages); and long-term valuation (purchasing power parity). The real attraction is that this takes the decision of whether or not to hedge out of the hands of the investor.
- Fidelity Dividend ETF for Rising Rates (FDRR)
- iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA)
- iShares MSCI Global Impact ETF (MPCT)
- Vanguard International Dividend Appreciation ETF (VIGI)
Best New U.S. Fixed-Income ETF: Deutsche X-trackers USD High Yield Corporate Bond ETF (HYLB)
Awarded to the most important fixed-income ETF launched in 2016.
The high-yield bond space is one of the few areas where fees haven't hit rock-bottom levels, until the launch of the Deutsche X-trackers USD High Yield Corporate Bond ETF (HYLB), that is. HYLB's 0.25% expense ratio is groundbreaking because it's half the fee charged by the largest junk bond ETF, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) (0.50%), and significantly lower than the fee charged by the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) (0.40%). Although its plain-vanilla portfolio isn’t exactly revolutionary, that low fee definitely is.
- Goldman Sachs Treasury Access 0-1 Year ETF (GBIL)
- IQ Enhanced Core Plus Bond U.S. ETF (AGGP)
- NuShares Enhanced Yield U.S. Aggregate Bond ETF (NUAG)
- WisdomTree Fundamental U.S. High Yield Corporate Bond Fund (WFHY)