The summer months might have seen low trading volumes in the stock markets, but the ever evolving ETP industry kept investors on their toes. August alone saw the end of more than a handful of products, but with the promise of many more to come this fall.
Last month saw the beginning of five new ETFs that are focused on growing consumer interests: fixed income funds, access to new emerging markets and duplicating the results of hedge funds. Each fund introduced this month took one of these concepts to a new level, following the closing of a number of different offerings. Over25 ETFs were liquidated this month, with the majority shutting down after failing to accumulate significant assets under management. On the other hand, 45 new ETFs were submitted to the SEC this month to fill this void in the market, with many of these new filings following the trends of the five most recently launched. Below, we outline all of the new launches from the month in addition to profiling exciting products to come [for updates on all new ETFs, sign up for the free ETFdb newsletter]:
New exchange-traded products that began trading in August include:
First on the scene this month, AdvisorShares launched a new product with QAM Equity Hedge ETF (QEH). This ETF is meant to meet the performance, if not outperform, an index based on long/short equity hedge funds.
- First Trust
First Trust launched two new products earlier this month to meet consumer demands for dividend paying funds. The first, Multi-Asset Diversified Income Index Fund (MDIV) is great for consumers looking for exposure to smaller dividend paying companies. NASDAQ Technology Dividend Index Fund (TDIV), however, looks for the best and most consistent dividend-paying technology and telecom companies in its search for income.
With emerging markets becoming increasingly accessible to American investors, EGShares has developed two new products to give us access to foreign markets. Emerging Markets Domestic Demand ETF (EMDD) gives investors access to the emerging markets that are most heavily influenced by consumer demand, while Beyond BRICs (BBRC) looks beyond the emerging super powers for countries that are more quietly influencing global markets.
- First Trust Again
First Trust added one more fund on the last day of the month that will give investors a new view of the S&P500. CBOE S&P500 VIX Tail Hedge Fund (VIXH) is built to offer investors exposure to the popular index with the added protection of a call position on the VIX.
August was an ETP filing frenzy, with over 45 new products being brought before the SEC for approval investors might want to start researching these products now so you can finish by the time they launch. The highlights include:
- PowerShares has filed plans with the SEC to offer two new ETFs, one based on bonds in emerging markets and another focused on domestic dividends.
- iShares and State Street are hoping to launch new products as soon as approved. iShares has a mass of new active currency ETFs in the works while State Street is looking to make an impact in the active bond fund market.
- Sage Quant is planning to add a new dividend ETF to its portfolio in the near future. Direxion is looking to add six new leveraged and inverse funds.
- Flex Shares filed plans for six new dividend focused ETFs both domestic and international. Global X is working on a new ETF to follow the natural resources industry. Legg Mason’s proposed ETF would track the global income index. IndexIQ is looking to launch around ten actively-managed funds in the future. iShares filed again this month, this time for three country specific ETFs.
Though the ETF industry saw a wave of filings, three companies have announced that they will close the doors on some of their ETFs, including FocusShares, which liquidated all of its positions last month.
- FocusShares closed all 15 of its positions on August 17th: US Market Index (FMU), Large Cap Index (FLG), Mid Cap Index (FMM), Small Cap Index (FOS), Basic Materials Index (FBM), Communication Services Index (FCQ), Consumer Cyclical Index (FCL), Consumer Defensive Index (FCD), Energy Index (FEG), Financial Services Index (FFL), Health Care Index (FHC), Industrials Index (FIL), Real Estate Index (FRL), Technology Index (FTQ), and Utilities Index (FUI). August 17, 2012 was the last day of trading.
- IndexIQ closed its IQ South Korea Small Cap ETF (SKOR) on August 17, 2012.
- Direxion announced this month that it will be closing the following 9 ETFs: Agribusiness Bull 3X Shares (COWL), Agribusiness Bear 3X Shares (COWS), Basic Materials Bear 3X Shares (MATS), BRIC Bull 3X Shares (BRIL), BRIC Bear 3X Shares (BRIS), Healthcare Bear 3X Shares (SICK), India Bear 3X Shares (INDZ), Latin America Bear 3X Shares (LHB), and Retail Bear 3X Shares (RETS)
Disclosure: No positions at time of writing.
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