Nine new ETF offerings were launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager.
USCF Advisers has launched the USCF Energy Commodity Strategy Absolute Return Fund. The actively managed ETF provides long, short, or spread exposure to the energy sector through a quantitative methodology, by investing in energy-related derivative instruments based upon oil, petroleum, natural gas, and other energy-related derivative instruments. The fund can potentially earn returns not correlated with stocks and bonds. It can also offer additional return potential from yields on collateral investments, such as US Treasuries.
MKAM ETF, LLC launched its first ETF, MKAM ETF, an actively managed ETF that seeks to achieve its investment objective by investing in US equity and/or fixed income investments. The manager will utilise an asset allocation approach, periodically shifting the fund’s allocation across asset classes based on MKAM ETF, LLC’s proprietary algorithm, which focuses on two inputs: trend and valuation. When the algorithm’s signal suggest a rising market trend and valuations are not considered excessive, the fund’s portfolio will maintain a higher allocation to US equities. Whereas, when the algorithm results suggest a falling market trend and/or valuations are considered high, the fund’s portfolio will be positioned to maintain a higher allocation to fixed-income Investments.
Envestnet PMC launched four new ActivePassive ETFs. The four ETFs, ActivePassive U.S. Equity, ActivePassive International Equity ETF, ActivePassive Core Bond ETF, and ActivePassive Intermediate Municipal Bond reflect Envestnet’s ActivePassive investment philosophy, which consists of passive and factor-based exposures managed by Envestnet, and active exposures managed by third-party investment managers vetted by PMC’s research team.
Veridien Global Investors launched the Veridien Climate Action ETF. The fund targets companies with technologies and business models that contribute to climate change mitigation. Regarding industry exposure, the fund will include businesses operating in construction, waste management, agriculture, and forestry, as well as transportation and energy that have as their main focus being the reduction of greenhouse gas emissions.
IndexIQ launched the IQ CBRE Real Assets ETF. The portfolio will invest in global real estate and infrastructure common equity securities, targeting assets from sectors that may benefit from secular and cyclical investment themes; these assets will have regulated or contractual cash flows and a history of stable income growth. CBRE Investment Management Listed Real Assets will sub-advise the fully transparent, actively-managed fund.
Pacific Investment Management Co. launched the PIMCO Commodity Strategy Active ETF. The new actively managed ETF invests in a broad range of commodity-linked instruments. The underlying strategy will target diverse sources of excess returns by incorporating multi-factor considerations such as storage costs of physical commodities and historic performance trends.