Nine new ETF offerings were launched for the week, with ESG-focused strategies and structured product offerings being a common theme among many of the new mandates. Detailed below are the respective launches from each asset manager.
JPMorgan Asset Management launched their JPMorgan Active Small Cap Value ETF, an actively managed small-cap fund that seeks to outperform the Russell 2000 Value Index. The strategy employs a bottom-up approach and aims to identify high-quality small-cap companies at attractive valuations.
Invesco Ltd launched their Invesco BulletShares 2032 Municipal Bond ETF. The solution will invest primarily in municipal bonds issued by a US state, state agencies, or local governments with effective maturities in 2032.
Fred Alger Management launched their Alger Weatherbie Enduring Growth ETF, an actively managed exchange traded fund that invests in a focused portfolio of 30 or fewer mid-cap growth companies with an ESG rating of medium or better. This is Alger’s third non-transparent actively managed ETF and first with a dedicated ESG mandate.
First Trust Advisors launched their First Trust Bloomberg Emerging Market Democracies ETF, which focuses solely on companies in emerging market countries where political rights and civil liberties are highly regarded. To be included in this ETF, securities must come from countries designated by nonprofit democracy advocacy group Freedom House as an Electoral Democracy. This designation reflects that a democratic electoral system requires not only fair balloting procedures and basic political competition, but also some respect for the rule of law and civil liberties, such as freedom of assembly.
Tuttle Capital Management launches two ETFs, based on the American TV personality Jim Cramer. The Long Cramer Tracker ETF and Inverse Cramer Tracker ETF are actively managed solutions that will invest with and against, respectively, the recommendations of the popular stock-picker, as stated on his daily television show ‘Mad Money’.
Allianz Investment Management launched two new Buffered ETFs,with a 12-month outcome period. The AllianzIM U.S. Large Cap Buffer10 Mar ETF and AllianzIM U.S. Large Cap Buffer20 Mar ETF provide investors access to versatile risk mitigation strategies amid shifting market and economic conditions. The ETFs seek to offer a downside buffer of 10% or 20% against market drops while allowing investors the opportunity to participate in the upside potential of the SPDR S&P 500 ETF Trust up to a stated cap.
Most of the buffer ETFs currently on the market have a one-year outcome period, meaning that the caps and buffers (as stated) apply only to investors who purchase on the rebalance date and hold the ETF throughout the entire outcome period.
Alpha Architect launched their Alpha Architect Tail Risk ETF. The ETF is an actively managed solution that will invest in a portfolio of options contracts on securities that are linked to the performance of the S&P 500 Index. The ETF’s three primary objectives are: (i) to gain a varying amount of market exposure to the S&P 500 Index; (ii) limit risk relative to a decline in the index and profit from a market dislocation event; and (iii) generate a series of cash flows.