ETF Odds & Ends: Quiet but for launches
While there were some changes to existing funds during the week, the most notable activity was the sustained pace of launches which continued through the end of the quarter and into day one. of the new quarter.
The number of launches since the start of the year has surpassed the record for all of 2020, and this week has shown no signs of easing the launches we’ve had in the first nine months of 2021, with at minus 27 launches added to the list.
October 1 was a particularly active day, as the first of the month is when many Defined Return ETFs are launched or reset. In addition to Innovator’s six launches, Pacer and Allianz added to their rosters on Friday.
Pacer added the following funds:
All three generally follow the performance of the SPDR S&P 500 ETF Trust (SPY) within the parameters defined through strategies using flexible exchange options (FLEX). Each comes with an expense ratio of 0.75% and is listed on Cboe Global Markets.
The PSCQ has an upward limit of 7.56% before expenses and protects against downward losses greater than 5% and up to 30%. The PSMO has a bullish cap of 9.07% before expenses and protects against the first 15% of losses.
PSFO is a bit more complicated. It has the highest bullish cap of the three funds, at 12.98% before expenses, and it protects against the top 20% of losses. However, this higher cap is possible because for losses greater than 20% up to 40%, the fund loses 2% for every 1% drop in SPY. Losses above 40% are without leverage.
Allianz today launched a brand new defined result product. The ETF AllianzIM US Large Cap 6 Month Buffer10 April / October (SIXO) is remarkable because instead of resetting every year, it resets every six months. The product will likely appeal to investors in times of market turmoil, when a shorter reset period would be more desirable.
SIXO has an expense ratio of 0.74% and is listed on the NYSE Arca. Its ceiling until March 31, 2022 is set at 6.00% before charges.
State Street Global Advisors
Earlier in the week, the SPDR ETF issuer added actively managed securities SPDR Loomis Sayles Opportunistic Bond ETF (OBND) to its range. The fund has wide latitude to invest in fixed income securities of all types and seeks to provide investors with both return and diversification. Sub-advisor Loomis Sayles manages the portfolio. The fund has an expense ratio of 0.55% and is listed on Cboe Global Markets.
Avantis Investors, a subsidiary of American Century Investments, added three more actively managed ETFs to its lineup on Thursday. The new funds and their expense ratios are as follows:
AVES and AVIV both target companies with strong characteristics of profitability and value in their respective geographies. AVRE takes a global perspective and invests primarily in REITs or similar securities, focusing on companies with less debt than their peers while taking into account characteristics such as profitability and liquidity, among others.
The funds are all listed on the NYSE Arca.
ETF splits and modifications
A number of ETFs have undergone or are expected to undergo stock splits or other changes. For example, four Direxion ETFs will complete the stock split starting October 22.
The Direxion Daily Regional banks Shares Bull 3X (DPST) and the Direxion Daily Retail Bull 3X Actions (RETL) will each undergo 5-to-1 front splits. During this time, the Direxion Daily MSCI Real Estate Bear 3X Actions (DRV) and the Direxion Daily Technology Bear 3X Shares (TECS) will undergo a reverse split 1 for 10 on the same day.
Two Vanguard funds replaced their Nasdaq benchmarks with indices offered by S&P Dow Jones Indices. Since September 20, the Vanguard Dividend Appreciation ETF (VIG) changed its index from the Nasdaq US Dividend Achievers Select Index to the S&P US Dividend Growers Index, while the Vanguard International Dividend Appreciation ETF (VIGI) changed its index from the Nasdaq International Dividend Achievers Select Index to the S&P Global Ex-US Dividend Growers Index.
The ETF Global X SuperDividend Alternatives (ALTY) changed its name to Global X Alternative Income ETF on September 29, while lowering its expense ratio from 2.82% to 0.50%.
Contact Heather Bell at [email protected]
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