February ETF Roundup: Launches, Filings And Closures

by on March 1, 2013 | ETFs Mentioned:

February continued the bull run in the U.S. market, with reports every week showing stronger economic growth both domestically and overseas. Even the arguing in Washington and worries of sequestration do not seem to be slowing down the upward market trend [for updates on all new ETFs, sign up for the free ETFdb newsletter].

After the slow rate of entry into the ETF space in the previous months, the introduction of nine new funds in February alone is cause for celebration and signifies that issuers are finally ready to reenter the market. Bringing the total count to 13 funds created so far in 2013, it does not look like this expansion will be slowing anytime soon [see Free Member Report: How To Pick The Right ETF Every Time]. 

New ETFs

640px-Candy-heartsNew exchange-traded products that began trading in February include:

    1. Market Vectors BDC Income ETF (BIZD): Van Eck was the first on the scene releasing BIZD earlier this month, for investors who want to track the overall performance of publicly traded business development companies.
    2. Yorkville High Income Infrastructure MLP ETF (YMLI): Exchange Traded Concepts launched this infrastructure focused ETF, which uses a sophisticated rule-based index to evaluate high income firms worth investing in.
    3. Prefered Securities and Income Fund (FPE): First Trust’s actively managed ETF focuses on financial institutions that offer high payouts with preferred stock and convertible bonds.
    4. Foreign Currency Strategy ETF (FORX): PIMCO also launched an actively-traded ETF this month, focusing on the earning potential that could come from the current currency wars.
    5. CurrencyShares Singapore Dollar Trust (FXSG): Guggenhiem’s new currency fund measures the foreign exchange rate of the growing Singapore dollar against the U.S. dollar.
    6. S&P SmallCap Low Volatility Portfolio (XSLV) and S&P MidCap Low Volatility Portfolio (XMLV): Invesco PowerShares was the first to launch low volatility ETFs this month, focusing on small- and mid-cap U.S. equities.
    7. SPDR Russell 2000 Low Volatility ETF (SMLV) and SPDR Russell 1000 Low Volatility ETF (LGLV): Following Invesco’s trend, State Street also introduced two new low-volatility ETFs, choosing to explore the small and large cap sectors.
    8. US Equity High Volatility Put Write Index Fund (HPVW): Launching on the last day of the month, ALPS rolled out a new alternatives strategy for investors looking to reduce market volatility through put and call options.

Coming Soon

A number of filings for new products hit the wire in February, and they will be launched later this year:

      • iShares filed for two target maturity ETFs, one planning to link to the MSCI benchmark while the other will focus on maturing corporate bond funds.
      • First Trust has made plans for an intriguing actively-manged ETF to come out later this year.
      • Emerging Global announced its very first actively-managed fund, along with requesting exemptive relief in order to market active strategies that would use derivatives among other financial instruments.
      • Deutsche Bank has filed for a new utilities equity ETF that aspires to capture some of the expansion expected in emerging markets.
      • Vanguard has laid the groundwork for a new international bond fund to launch in the second quarter.
      • Franklin Templeton filed for its first ETF this month to meet the growing needs of its traditionally mutual-fund-focused investors.
      • IndexIQ announced plans for two new domestic equity ETFs focused on driving growth and innovation.

ETF Closings

Invesco decided back in December that 13 of its funds would come to a close on the 26th of this month; however, combined the funds only make up 1% of the ETF giants funds, so there is little cause for concern:

      • Dynamic Insurance Portfolio (PIC), Morningstar StockInvestor Core Portfolio (PYH), Dynamic Banking Portfolio (PJB), Global Steel Portfolio (PSTL), Active Low Duration Portfolio (PLK), Global Wind Energy Portfolio (PWND), Active Mega-Cap Portfolio (PMA), Global Coal Portfolio (PKOL), Global Nuclear Energy Portfolio (PKN), Ibbotson Alternative Completion Portfolio (PTO), RiverFront Tactical Balanced Growth Portfolio (PAO), RiverFront Tactical Growth & Income Portfolio (PCA), and Convertible Securities Portfolio (CVRT)

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Disclosure: No positions at time of writing.