A busy week saw 12 new ETF offerings launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager.
Tema ETFs launched three thematic ETFs. Tema, a new investment management firm focused on active ETF investing, launched three inaugural ETF solutions, namely, Tema American Reshoring ETF, Tema Luxury ETF, and Tema Monopolies and Oligopolies ETF. The Tema American Reshoring ETF will invest in companies identified as enablers and beneficiaries of the emerging American industrial renaissance, as ‘Re-shoring’ is expected to be a multi-year trend spurred by supply chain insecurity, geopolitical tensions, and deglobalization. Unprecedented US government spending, through bills such as the Infrastructure Investment and Jobs Act, is accelerating this trend and already stimulating growth.
The Tema Luxury ETF will provide investors with exposure to the global luxury industry, which has historically displayed increasing resilience with minimal cyclicality, while tapping into an expanding array of growth opportunities. Finally, the Tema Monopolies and Oligopolies ETF targets industries characterized by monopolistic structures and will focus on industries and companies that are defined by sustainable competitive advantages and high barriers to entry, typically leading to high margins and profitability.
YieldMax launched the YieldMax NVDA Option Income Strategy ETF. The actively managed fund seeks to generate monthly income via a synthetic covered call strategy on NVIDIA (NVDA) stock. As part of its strategy, the manager will write (sell) call option contracts on NVDA to generate income. Since the fund does not directly own NVDA, these written call options will be sold short. To achieve a synthetic long exposure to NVDA, the fund will simultaneously buy call options and sell put options on the fund. This will attempt to replicate the stock price movements.
Bridges Capital launched the Bridges Capital Tactical ETF. The active ETF will provide long-only, opportunistic exposure to equities and implement an investment strategy based on macroeconomic and monetary policy fundamentals, technical breadth, and volatility analysis. The solution will focus primarily on large-cap U.S. equities, with a complimentary allocation to other ETF holdings. The fund’s exposure to assets outside of its core single-stock holdings can be adjusted following meaningful monetary policy changes. Macro indicators that could impact the fund’s exposure include earnings revisions, labor growth, and bank lending standards.
JPMorgan Asset Management adds to their BetaBuilders suite. The firm launched two new ETFs, the JP Morgan BetaBuilders Emerging Markets Equity and JP Morgan BetaBuilders U.S. TIPS 0-5 Year ETF. Both funds will utilize a representative sampling investment approach, with the former aligning with the Morningstar Emerging Markets Target Market Exposure Index SM and the latter with the ICE 0-5 Year US Inflation-Linked Treasury Index.
The addition of these new solutions adds to JPMorgan Asset Management’s product suite of BetaBuilders ETFs, as they seek to over diverse market exposure to investors at an attractive price point.
Global X Converts 2 Active Emerging Markets Mutual Funds to ETFs. The Global X Emerging Markets Great Consumer ETF and Global X Emerging Markets ETF completed their conversion and have begun trading. Global X affiliate, Mirae Asset Global Investments, previously advised the predecessor funds and will actively manage the ETFs.
AllianceBernstein Launches AB High Yield ETF. The fund represents AllianceBernstein’s (AB) first mutual fund to ETF conversion and will invest a majority of its net assets in US high-yield corporate bonds, which are classified as below investment grade (Moody’s: Ba1 or lower, S&P Global Ratings/Fitch Rating: BB+ or lower) fixed income instruments. The objective of the fund is to maximize total return and generate income by emphasizing three pillars, namely, broad diversification, dynamic beta exposures, and AB’s quantitative and fundamental research.
BNY Mellon Investment Management launched two actively managed thematic ETFs. The BNY Mellon Women’s Opportunities ETF and BNY Mellon Innovators ETF, both sub-advised by BNY Mellon subsidiary Newton Investment Management North America, will enable investors to potentially benefit from themes the manager believes will be important drivers of economic and societal growth and progression.
The BNY Mellon Women’s Opportunities ETF will invest principally in companies that incorporate gender equitable practices in the workplace and targets firms that provide products or services that help women meet their work or personal needs. The fund will also have a philanthropic component, as ten percent of earned annual management fees will be contributed to one or more charitable organizations that promote opportunities for women and/or girls. BNY Mellon is currently partnering with Girls Inc., which inspires girls to be strong, smart, and bold through direct service and advocacy. The BNY Mellon Foundation will also provide grant funding to Girls Inc. and its New York affiliate, Girls Inc. of New York City.
The BNY Mellon Innovators ETF will focus on innovation-driven companies that seek to transform or disrupt the way people live and work. The fund invests across all market capitalisations through a range of industries and sectors to capture long-term transformational growth opportunities.
