Over the summer break, the ETF industry did not rest. Here are the 22 US ETF launches from our time off.
Texas Capital launched the Texas Capital Texas Equity Index ETF, an ETF that exclusively targets public companies headquartered in the state of Texas. The ETF will track the performance of the Texas Capital Texas Equity Index.
At the time of launch, the fund’s index included 216 publicly traded companies. Component weights depend first on sector, then on relative contribution to Texas’ reported GDP, then by market capitalisation.
BlackRock launched the BlackRock Short-Term California Municipal Bond ETF, an actively managed exchange traded fund that will primarily invest in US dollar-denominated investment-grade short-term fixed- and floating-rate municipal securities issued by California with remaining maturities of five years or less. The effective duration of the Fund’s portfolio is expected to be 1.5 years or less.
Goldman Sachs Asset Management launched the Goldman Sachs North American Pipelines & Power Equity ETF, which provides investors full exposure to the opportunity set of energy infrastructure securities listed in North America.
The fund is linked to the newly developed Solactive Energy Infrastructure Enhanced Index which selects its constituents from a universe of US and Canada-listed securities within the midstream energy sector or the following RBICS industries: LPG, Propane & other Distributors; Oil & Gas Transportation and Infrastructure; and Alternative Wholesale Power.
Matthew Asia Funds launched the Matthews Korea Active ETF, an actively managed ETF that will invest in companies in South Korea capable of sustainable growth based on their fundamental characteristics. These characteristics include balance sheet information, number of employees, size and stability of cash flow, management’s depth, adaptability, and integrity. Product lines, marketing strategies, corporate governance, and financial health are also considered.
JPMorgan Asset Management launched two new municipal bond ETFs, the JPMorgan High Yield Municipal ETF which invests in high yield municipals exempt from federal income taxes and the JPMorgan Sustainable Municipal Income ETF, which seeks to deliver current income exempt from federal income taxes by investing in municipal with use of proceeds that provide positive social or environmental benefits.
Innovator Capital Management launched the Equity Defined Protection ETF, which provides the upside return of the SPDR S&P 500 ETF Trust, capped at 16.62per cent and 100per cent buffer against S&P 500 losses over a two-year outcome period.
Touchstone Investments launched the Touchstone Securitised Income ETF, is an actively managed, fully transparent fixed income fund. The ETF will hold a diverse offering of securitised fixed income securities, including residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, and collateralised loan obligations. The fund’s holdings may include Treasuries, US government agency securities, securities of government-sponsored enterprises, municipal bonds, and cash equivalents.
Panagram Structured Asset Management launched the Panagram AAA CLO ETF, its second actively managed collateralized loan obligations (CLO) ETF. The fund will provide access to a diverse pool of AAA-rated CLO bonds, which can offer higher yields than other similarly rated investments.
AAA-rated CLO bonds are less correlated to traditional stocks and bonds than other credit assets and Panagram believes the CLO structure provides the best exposure to the USD1.4 trillion senior secured loan market.
Avantis launched the Active International Small-Cap ETF, an actively managed solution that invests in in a diverse group of non-US small-cap companies across market sectors, industry groups, and countries.
The ETF emphasises profitability and value characteristics. Conversely, it underweighs or excludes securities expected to have lower returns based on lower profitability and less attractive value characteristics.
YieldMax launched the YieldMax AMZN Option Income Strategy ETF, an actively managed solution that seeks to generate monthly income via a synthetic covered call strategy on Amazon.com Inc.
Global X ETFs launched the Global X Dow 30 Covered Call & Growth ETF, which seeks to generate income by writing covered calls on the Dow Jones Industrial Average.
The fund will track the Cboe DJIA Half BuyWrite Index, which reflects the performance of the Dow’s component securities, combined with written at-the-money call options corresponding to half their value.
PGIM, Inc launched two ETFs, the PGIM AAA CLO ETF and PGIM Short Duration Multi-Sector Bond ETF. The former will invest primarily in the senior tranches of collateraliSed loan obligations, which typically have the highest ratings, the lowest level of risk, and the lowest relative yields. The latter seeks to provide total return, allocating its investments across different sectors of the fixed income market with an average portfolio duration of three years or less.
Franklin Templeton launched the BrandywineGLOBAL U.S. Fixed Income ETF. The ETF is an actively managed solution that is focused on investment-grade US fixed debt. Bond instruments that will be held by the fund will include, US corporate debt securities, mortgage-backed securities and asset-backed securities of US issuers, and other fixed income and related investments.
YieldMax launched two actively managed solutions, the YieldMax META Option Income Strategy ETF and YieldMax GOOGL Option Income Strategy ETF. The former sells/writes call options on Meta Platforms Inc, while the latter sells/writes call options on Alphabet Inc.
Both ETFs are actively managed by ZEGA Financial and neither fund will invest directly in the companies of focus.
Allianz Investment Management launched two August Buffered etfs, the AllianzIM U.S. Large Cap Buffer10 Aug ETF and AllianzIM U.S. Large Cap Buffer20 Aug ETF. These two 12-month outcome period ETFs provide a downside buffer of 10 per cent and 20 per cent, respectively, against market drops. Conversely, the upside performance caps for each solution are 18.81 per cent and 13.07 per cent, respectively.
Academy Asset Management launched the Academy Veteran Impact ETF. The ETF seeks to generate income by investing in loans to US service members, military veterans, their survivors, and veteran-owned businesses. The fund facilitates the flow of capital to veterans, resulting in lower borrowing costs for veterans and their families.
Academy Asset Management is a disabled veteran-owned and operated asset manager that specialises in fixed income. Its goal is to provide opportunities for veterans. As part of this goal, AAM pairs veterans with Wall Street veterans for mentorship.
First Trust Advisors launched two fixed income ETFs, the First Trust Intermediate Duration Investment Grade Corporate ETF and First Trust Intermediate Government Opportunities ETF. The former is an intermediate duration portfolio that will invest in investment grade corporate debt securities and have a dollar weighted average duration of +/- 1.5 years of the Bloomberg U.S. Credit Corp 5-10 Year Index. The latter will invest primarily in debt securities issued or guaranteed by the US government; this includes mortgage-backed securities, US Treasuries, pass-through securities, collateralised mortgage obligations, and commercial mortgage-backed securities.
Days Global Advisors launched the DGA Absolute Return ETF, a quantitatively oriented solution that seeks to capitalise on the tendency of stock prices to trend in the same direction over short- to medium-term periods. The goal is to identify broad market signals that indicate an upward or downward trend.
The ETF is a “fund of ETFs” that targets U.S.-listed ETFs that invest in US and foreign equities, bonds, currencies, and commodities. The fund may also invest in inverse or leveraged ETFs.
Astoria Advisors launched the Astoria US Quality Kings ETF, an actively managed solution that seeks to invest in companies that exhibit robust quality characteristics across sectors, with attractive valuations and dividend-paying potential, as determined by the fund’s sub-adviser, Astoria Portfolio Advisors, LLC.
JP Morgan Asset Management converted four mutual funds into actively managed ETFs.
The JPMorgan Equity Focus ETF invests in no more than 40 US growth and value-oriented equities with the flexibility to invest more heavily in either style based on market conditions or shift significantly to cash when attractive investment opportunities are considered scarce.
The JPMorgan Limited Duration Bond ETF invests mainly in mortgage-backed or mortgage-related securities, asset-backed securities, money market instruments, and structured investments, selecting securities that are believed to perform well over market cycles according to JP Morgan’s bottom-up fundamental research.
The JPMorgan High Yield Municipal ETF seeks a competitive yield and higher after-tax returns by focusing on high yield municipal bonds.
The JPMorgan Sustainable Municipal Income ETF invests in municipal bonds whose proceeds are earmarked for projects with positive social or environmental benefits.
YieldMax launched the YieldMax NFLX Option Income Strategy ETF, which will sell/write call options on Netflix’s stock.
USCF Advisers launched the USCF Sustainable Commodity Strategy Fund, an actively managed sustainable broad commodity ETF. The solution will provide broad exposure to commodities across three different sustainability focused themes: agriculture, renewable energy, and electrification; investing primarily in commodities derivatives as well as equity securities that are economically tied to specific commodities. The commodity ETF’s exposure to each of the three sustainability themes will be approximately equally weighted.
