This Week Brings New ETF Offerings Across Multiple Sectors
Nearly 30 new ETFs, including TCAL, THEQ, BFRE, VRTL and RDTL, debuted this week as issuers create specialized funds for changing market conditions.
Major investment firms launched a flurry of new ETFs this week, with T. Rowe Price Group Inc. (TROW) expanding its active equity lineup and specialized providers rolling out leveraged single-stock products.
These new ETFs show how firms are responding to investors who want both safety and opportunity in today's market and creating tools for long-term growth while also catering to short-term traders.
New Equity ETFs Hit the Market
T. Rowe Price added two transparent active equity ETFs to its lineup Thursday, bringing its total active ETF roster to 19 funds, according to the company's announcement. The T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) combines high-quality stocks with covered calls to maximize income while preserving principal, carrying a 0.34% expense ratio.
The T. Rowe Price Hedged Equity ETF (THEQ) seeks long-term capital growth with reduced volatility by combining the firm's U.S. Structured Research Equity Strategy with a derivatives hedging approach designed to protect against market downturns, according to the press release.
The fund has a 0.46% expense ratio and is managed by Sean McWilliams, who brings 15 years of investment experience.
Westwood Holdings Group introduced an innovative approach to global investing with the Westwood LBRTY Global Equity ETF (BFRE). The fund employs TOBAM's methodology to systematically reduce exposure to companies subject to authoritarian governments while maintaining broad market exposure, according to a Thursday announcement.
TOBAM, an investment management firm founded in 2006, developed the approach based on research suggesting that investors in countries with oppressive regimes face unrewarded risks and potential underperformance over time.
Tactical Trading for Specialized Investors
GraniteShares announced the launch of three new leveraged single-stock ETFs Tuesday, offering bullish investors amplified exposure to companies in technology and digital media.
The new ETFs—the GraniteShares 2x Long IONQ Daily ETF (IONL), the GraniteShares 2x Long VRT Daily ETF (VRTL) and the GraniteShares 2x Long RDDT Daily ETF (RDTL)—seek daily returns of 200% of their underlying stocks' performance before fees and expenses.
Direxion also expanded its suite of single-stock leveraged and inverse ETFs, according to a Wednesday announcement, introducing trading pairs for Eli Lilly and Co. (LLY) and Palo Alto Networks Inc. (PANW). The new ETFs include the Direxion Daily LLY Bull 2X Shares (ELIL), the Direxion Daily LLY Bear 1X Shares (ELIS), the Direxion Daily PANW Bull 2X Shares (PALU) and the Direxion Daily PANW Bear 1X Shares (PALD).
"These new ETFs give active traders an edge, whether they want to double down on momentum, or hedge against volatility, in two industry-leading stocks," said Douglas Yones, Direxion CEO, in the company's announcement.
Principal Asset Management entered the active equity ETF space with the launch of the Principal Capital Appreciation Select ETF (LCAP). The fund targets investors seeking both stability and long-term growth, according to the company's press release, and will be managed by Toby Jayne and Dan Coleman.
Other Notable ETF Launches This Week
- Allspring LT Large Growth ETF (AGRW)
- Allspring Special Large Value ETF (ASLV)
- Avantis U.S. Quality ETF (AVUQ)
- GlacierShares Nasdaq Iceland ETF (GLCR)
- JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ)
- Polen High Income ETF (PCHI)
- FT Vest U.S. Equity Equal Weight Buffer ETF - March (RSMR)
- FT Vest Emerging Markets Buffer ETF - March (TMAR)
- Polen Floating Rate Income ETF (PCFI)
- YieldMax MSTR Short Option Income Strategy ETF (WNTR)
- iShares iBonds Dec 2035 Term Corporate ETF (IBCA)
- iShares iBonds Dec 2045 Term Treasury ETF (IBGB)
- iShares iBonds Dec 2055 Term Treasury ETF (IBGL)
- iShares iBonds 2032 Term High Yield and Income ETF (IBHL)
- iShares iBonds Oct 2035 Term TIPS ETF (IBIL)
- iShares iBonds Dec 2031 Term Muni Bond ETF (IBMT)
- iShares iBonds Dec 2035 Term Treasury ETF (IBTQ)
- Cambria Fixed Income Trend ETF (CFIT)
- Leverage Shares 2X Long Adobe Daily ETF (ADBG)
- Leverage Shares 2X Long Robinhood Markets Daily ETF (HOOG)
- Leverage Shares 2X Long Palo Alto Networks Daily ETF (PANG)
