ETF Filing Frenzy

by on August 24, 2012

Equity indexes have endured an eventful week as major benchmarks backed away from historical resistance levels as investors reacted to the latest FOMC minutes on Wednesday. Surprisingly, hints of an additional round of quantitative easing from the Fed sparked a round of profit-taking, throwing a wrench in the bull’s slow-and-steady climb over the past few weeks. Amidst another low-volume week on Wall Street, several ETF issuers have filled the pipeline with over a dozen exciting products to come [see also The Ultimate Commodity Survival Kit: 5 Must-Haves].

Chicago-based FlexShares has laid out the groundwork for six divided-focused ETFs, serving up a plateful of viable tools for yield-hungry investors [see SEC Filing]. The underlying companies included in each of the various indexes will be selected based on a variety of fundamental factors like profitability, cash flow and quality of management [see also Monthly Dividend ETFdb Portfolio]:

  • FlexShares Quality Dividend Index Fund
  • FlexShares Quality Dividend Dynamic Index Fund
  • FlexShares Quality Dividend Defensive Index Fund
  • FlexShares International Quality Dividend Index Fund
  • FlexShares International Quality Dividend Dynamic Index Fund
  • FlexShares International Quality Dividend Defensive Index Fund
Global X is planning to round out its product lineup with an intriguing MLP fund [see SEC Filing]:
  • Global X Junior MLP ETF: This ETF will look to track the price and yield performance of the Solactive Junior MLP Composite Index. The underlying basket of holdings will be comprised of small-capitalization MLPs engaged in the transportation, storage, processing, refining, marketing, exploration and production of natural resources [see Guide To MLP ETFs And ETNs].
Legg Mason, perhaps best known for its lineup of mutual funds, has added another product to its development pipeline [see SEC Filing]:
  • Legg Mason Global Income ETF:  This ETF will look to track the price and yield performance of the Global Income Index. The underlying basket of holdings will consist of companies that boast both high and sustainable dividend yields; the fund will use a proprietary methodology that considers each of the following factors in equal weights: yield, distribution history, free cash flow and payout ratios [see also 12 High-Yielding Monthly Distribution Bond ETFs].
IndexIQ is planning to make a big splash in the actively-managed ETF space with its latest proposal [see SEC Filing]:
  • IQ Global Equity ETF
  • IQ Long/Short Alpha ETF
  • IQ Short Alpha ETF
  • IQ Bear Large Cap U.S. Equity ETF
  • IQ Bear Small Cap U.S. Equity ETF
  • IQ Bear Non-Financial U.S. Equity ETF
  • IQ Bear Industry Leaders U.S. Equity ETF
  • IQ Bear International Equity ETF
  • IQ Bear Emerging Markets Equity ETF
Industry veteran iShares has loud out plans to beef up its already extensive lineup of equity offerings:
  • iShares MSCI USA High Dividend Yield Index Fund: This ETF will consist of companies that pay dividends at least 30% higher than the yield of the MSCI USA Index [see SEC Filing].
  • iShares MSCI GCC Countries ex Saudi Arabia Index Fund: This ETF will track the performance of equities from the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. As the name suggest, exposure to securities from Saudi Arabia will be excluded [see SEC Filing].
  • iShares MSCI EFM Africa ex South Africa Fund: This ETF will consists of stocks from Egypt, Kenya, Mauritius, Morocco, Nigeria and Tunisia [see SEC Filing].

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Disclosure: No positions at time of writing.