July proved to be yet another eventful month as multiple ETF issuers wasted no time in rolling out over ten new products in the past several weeks. Though usually a slower season in regards to product development, this summer has had no shortage of new activity. Investors now have more options than ever as issuers continue to seek out new and innovative product offerings.
Though July was another up/down month in the global stock markets, the ETP industry showed strength through its continued growth. This past month’s launches are a diversified mix of exchange-traded products including equities, fixed income and currency offerings. Among the new additions are a “Random Roger” actively-managed fund and a new Master Limited Partnership ETN. The commodity front was rather quiet after a busy month in June, but two new currency offerings focused on the Australian dollar are sure to entertain investors; if not with their performance than at least with their names (GDAY and CROC). Below, we outline all of the new launches from the month to keep you up to date on all of the latest offerings available [for updates on all new ETFs, sign up for the free ETFdb newsletter]:
- This month’s first new fund was claimed by Advisor Shares, who launched the new Global Alpha & Beta ETF (RRGR). This actively-managed ETF will be under the guidance of the experienced investor and beloved blogger, Random Roger. The fund’s assets are divided between equities, cash and commodities.
- ProShares was next to market with their launch of two new ETFs: UltraPro Financials (FINU) and UltraPro Short Financials (FINZ). These two new ETFs arm investors looking to bet on the short-term performance of the volatile financial sector. FINU and FINZ offer 300% daily leveraged exposue to the Dow Jones U.S. Financials Index.
- Van Eck debuted a unique ETF with their launch of the Market Vectors Preferred Securities ex Financials ETF (PFXF). The new offering seeks to track an index comprised of about 70 different issues of preferred stock with credit ratings ranging from CCC to AA. The unique aspect of this ETF is its exclusion of financial issuers.
- The next ETF to reach the market was Global X’s addition of the SuperIncome Preferred ETF (SPFF). This ETF adds to the lineup of income-oriented ETFs offered by Global X. SPFF seeks to replicate the S&P Enhanced North American Preferred Stock Index, which includes approximately 50 preferred stock securities with the highest yield.
- UBS made another addition to its lineup of MLP ETNs with the ETRACS Alerian MLP Index ETN (AMU). This new ETN offers exposure to a basket of about 50 publicly-traded energy Master Limited Partnerships. Large components include: Enterprise Products Partners, Kinder Morgan and Plains All American Pipeline.
- Invesco PowerShares added to its existing lineup of strategic ETFs with its addition of the DWA SmallCap Technical Leaders Portfolio (DWAS). The new ETF utilizes the DWA Technical Leaders strategy, seeking to replicate an index of small cap U.S. stocks. Top holdings include Jazz Pharmaceuticals, Pier 1 Imports and Clean Harbors Inc.
- ProShares introduced a pair of innovative ETFs that are geared towards the AUD/USD exchange rate: ProShares UltraShort Australian Dollar (CROC) and ProShares Ultra Australian Dollar (GDAY). CROC will seek to deliver -2x daily returns to the AUD/USD cross rate, while GDAY will offer 2x leveraged daily exposure to the same benchmark.
- New issuer, Huntington, broadened its ETF offerings by launching the U.S. Equity Rotation Strategy ETF (HUSE). This actively-managed ETF seeks to identify the most promising and least promising sectors, and tilt the portfolio accordingly. Among the largest positions at launch are Apple, Pfizer and Exxon Mobil.
The new product pipeline continued to fill in July, with a number of issuers laying the groundwork for future additions to their lineup. The highlights include:
- First Trust has filed plans with the SEC to offer two new income-focused dividend ETFs, while Pyxis filed for a senior loan fund focused on replicating the performance of the Markit iBoxx Liquid Leveraged Loan Index.
- Denver-based U.S. Commodity Funds filed plans with the SEC to launch a currency-focused ETF that will offer equal weighted exposure to a basket of five currencies at a time.
- Illinois-based First Trust has laid the groundwork for a new actively-managed multi-asset income ETF that will seek to deliver positive returns through a fund-of-funds strategy.
- Vanguard has filed plans for a new ETF that seeks to offer exposure to inflation-protected U.S. Treasury securities with a maturity of less that five years, while First Trust filed for an ETF that will focus on investing in high-yield debt securities.
Disclosure: Photo courtesy of Wikipedia. No positions at time of writing.
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