Best New International/Global Fixed-Income ETF: JPMorgan Global Bond Opportunities ETF (JPGB)
Awarded to the most important international or global fixed-income ETF launched in 2017.
The best among the nine global fixed-income newcomers launched last year is the JPMorgan Global Bond Opportunities ETF (JPGB). JPGB is an unconstrained, go-anywhere bond portfolio that actively looks for diversification and higher yields across more than 50 countries and some 15 different fixed-income segments. JPGB is J.P. Morgan Asset Management’s first active fixed-income ETF. The fund leverages the firm’s fixed-income expertise with a flexible approach that can be tactical from a duration, country and sector perspective depending on the market environment. While unconstrained, JPGB looks to keep at least 40% of the mix outside the U.S.
- Columbia Diversified Fixed Income Allocation ETF (DIAL)
- First Trust TCW Opportunistic Fixed Income ETF (FIXD)
- VanEck Vectors Green Bond ETF (GRNB)
- IQ S&P High Yield Low Volatility Bond ETF (HYLV)
Best New Commodity ETF: ETFS Bloomberg All Commodity Strategy K-1 Free ETF (BCI)
Awarded to the most important commodity ETF launched in 2017.
Launches in the commodity ETF space have been few and far between over the last few years, but as the asset class began coming back into favor in 2016 and 2017, issuers set in motion new products, some with a twist. The ETFS Bloomberg All Commodity Strategy K-1 Free ETF (BCI) is this year’s winner of Best New Commodity ETF. While it’s a fund tracking an index, the Bloomberg Commodity Index, it also actively manages the fund’s collateral. Think of it as an index-tracking fund with an active overlay. BCI’s active manager invests the fund’s collateral in cash and short-term, highly rated corporate and government debt. BCI is organized as an open-ended ETF, rather than a commodity pool, so taxable investors pay the usual long- and short-term capital gains rates on sale and avoid receiving an annual K-1 tax form. The fund manages this feat by gaining its commodity exposure through a wholly owned Cayman Islands subsidiary.
- GraniteShares Gold Trust (BAR)
- GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB)
- GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF (COMG)
- SPDR Long Dollar Gold Trust (GLDW)
Best New Alternatives ETF: JPMorgan Managed Futures ETF (JPMF)
Awarded to the most important alternatives ETF launched in 2017.
JPMF isn’t the only—or even the first—managed futures ETF, but it is a better mousetrap in a few key ways. To start, JPMF offers exposure to the most assets of any managed futures ETF: It can hold derivatives on equities, bonds, commodities and currencies. Other managed futures ETFs omit one or more of these asset classes. JPMF’s portfolio managers also have fewer restrictions in how they may implement these contracts. Within each asset class, JPMF may take positions in contracts of any expiry or segment to create net-long, net-short or neutral exposure. Best of all, JPMF is the cheapest-in-class: Its expense ratio clocks in at 0.59%, compared with 0.65% for the next-cheapest product.
- Anfield Capital Diversified Alternatives ETF (DALT)
- JPMorgan Event Driven ETF (JPED)
- QuantX Risk Managed Real Return ETF (QXRR)
- QuantX Risk Managed Multi-Asset Total Return ETF (QXTR)
Best New Asset Allocation ETF: WisdomTree Balanced Income Fund (WBAL)
Awarded to the most important ETF launched in 2017 that combines exposure to multiple asset classes.
WBAL is an ETF of ETFs designed to offer a 60/40 mix of global equities and fixed income. The equity part of the portfolio comprises developed and emerging market ETFs selected for higher yield, while the fixed-income allocation is diversified across sectors and credit, with a focus on duration. Ultimately, the mix, which tracks a proprietary WisdomTree index and is rebalanced annually, looks to capture income-generating assets globally in one ticker.
- ClearShares OCIO ETF (OCIO)
- QuantX Risk Managed Multi-Asset Income ETF (QXMI)
- Cambria Tail Risk ETF (TAIL)