Eleven 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.
Franklin Templeton launched the Franklin Income Focus ETF. This actively managed ETF will invest opportunistically across different asset classes, markets, and sectors by using income generation strategies. As a multi-asset solution, a dynamic allocation approach will be utilised in adjusting the strategy’s asset allocation according to market conditions. Given the income-oriented focus of the mandate, equity securities within the portfolio may include dividend-paying stocks, as well as convertible preferred securities. Debt securities may include all varieties of fixed-, floating-, and variable-rate instruments.
Defiance ETFs launched the Defiance Pure Electric Vehicle ETF. This thematic-focused ETF provides investors with pure-play exposure to electric vehicle manufacturers. The fund will track the Solactive Pure US Electric Vehicle Index, which reflects the five largest electric vehicle manufacturers by market capitalisation.
According to Defiance, 14 per cent of all new cars sold were electric in 2022, up from 9 per centin 2021. There are more than 26 million electric cars worldwide as of 2022, 60 per cent more than in 2021. Defiance expects EV sales to grow 35 per cent this year, and projects revenue to reach USD561.3 billion in 2023.
Fidelity Investments launched six thematic solutions. These active ETF solutions are conversions of Fidelity’s Disruptive mutual fund suite, which provides investors with access to companies that have the potential to alter existing business models. The thematic nature of these ETFs allows investors to choose long-term trends that best aligned with their interests or objectives, while benefiting from the investment expertise of the firm. Fidelity’s six disruptive-themed ETFs are as follows:
Fidelity Disruptive Automation Fund, which invests in companies leading the way in automation, from industrial robotics to artificial intelligence and autonomous driving.
Fidelity Disruptive Communications Fund, which invests in companies changing the way we connect and communicate, from social media to 5G-related digital infrastructure and the internet of things.
Fidelity Disruptive Finance Fund, which invests in companies helping to deliver more efficient and customised financial solutions, such as digital payments and internet banks.
Fidelity Disruptive Medicine Fund, which invests in companies that are transforming medical diagnostics, therapies, and services, from gene therapy to robotic surgery and digital health platforms.
Fidelity Disruptive Technology Fund, which invests in new technologies such as companies delivering cloud computing, harnessing big data, and transforming consumer experiences through internet and mobile platforms.
The sixth ETF, the Fidelity Disruptors Fund is a fund of funds which will invest in a combination of the five previously mentioned Fidelity ETFs. This solution will become available on 20 June .
Simplify Asset Management launched the Simplify Market Neutral Equity Long/Short ETF, The ETF will invest in a basket of global equities, primarily through total return swaps. These swaps provide the returns, long or short, of a basket of common stocks. Additionally, Simplify uses a multi-factor quantitative ranking system powered by machine learning to select the companies in these baskets. The ETF is also designed to have a dynamic de-leveraging strategy. This helps avoid severe drawdowns, which differentiates the fund from other market neutral approaches.
Aptus Capital Advisors, LLC launched the Aptus Large Cap Enhanced Yield ETF. This actively managed strategy combines US Large Cap equities with an equity options overlay designed to deliver capital appreciation with attractive income. The launch of this solution marks the third strategy in Aptus Capital’s Enhanced Yield suite of actively managed ETFs focused on income generation.
Armada ETF Advisors launched the Private Real Estate Strategy via Liquid REITs ETF. This actively managed solution will invest in a diversified portfolio of publicly-traded real estate investment trusts and mortgage-backed securities listed primarily in the US, and to a lesser extent, in Canada, Europe, and Asia stock exchanges, that have similar qualitative characteristics to a select group of public, non-traded REITs.
Simply put, this solution is a portfolio of liquid and transparent publicly-traded REITs designed to mirror the asset allocation and geographic exposure deployed by the largest private REITs.
