May was yet another strong month in the markets, with few investors selling early this year to avoid a summer slump. However, some investors were spooked early in the month after the FOMC rate decision and press conference. In its statement, the Fed said it would continue its $85 billion a month bond buying program, but indicated that it could either increase or decrease the amount it purchases monthly depending on the economic environment. Only two weeks later, funds took a dip after a report that the Fed may be ready to scale back its massive bond program sooner than any analysts had expected. With the end of May in sight, Treasury yields skyrocketed to levels not seen in over 13 months, leading many high yield corners of the market to suffer [for updates on all new ETFs, sign up for the free ETFdb newsletter].
May had a number of new funds launch in the beginning and end of the month, with 10 new ETFs entering the ring. With issuers still filling the product pipeline it seems that this summer may be a busy one for ETFs [see Free Member Report: How To Pick The Right ETF Every Time].
New exchange-traded products that began trading in May include:
- Senior Loan Fund (FTSL): First Trust was one the first on the scene this month, debuting its own actively managed senior loan fund, which has the goal to provide high current income through a diversified portfolio of bank loans.
- Direxion Daily Brazil Bear 3x Shares (BRZS) and Daily South Korea Bear 3x Shares (KORZ): Just last month Direxion introduced the bull counterpart to these two heavily levered inverse international equity ETFs, focusing in on the large- and mid-cap companies.
- Fundamental Emerging Markets Local Debt Portfolio (PFEM): PowerShares also expanded its product lineup with an intriguing emerging markets bond ETF aimed at investors looking to diversify away from the U.S. dollar.
- Cambria Shareholder Yield ETF (SYLD): Newcomer Cambria launched its first independent fund this month, with SYLD focusing in on dividend paying and high yield securities.
- U.S. Dividend Growth Fund (DGRW): WisdomTree brought out its newest fund this month, which takes an interesting look at the potential of global dividend paying companies.
- Barclays ETN + FI Enhanced Global High Yield ETN (FGHY) and Barclays ETN + FI Enhanced Europe 50 ETN (FEEU): iShares once again has added to its massive line up with two new funds ranging in focus between global yield and the largest corporations in Europe.
- SPDR Barclays 1-10 Year TIPS ETF (TIPX) and SPDR S&P Global Dividend ETF (WDIV): State Street was also in trend this month, producing another global yield fund for May, along with a bond fund focusing on intermediate TIPS funds.
- db X-trackers MSCI Germany Hedged Equity Fund (DBGR): Deutsche Bank finished up on the last day of May with the introduction of DBGR, a fund which offers exposure to German equity markets while mitigating the risk of price changes between the Euro and the USD.
Few ETFs were filed for this month, which could be attributed to the heavy tide of funds that came in January and February:
- Emerging Global is looking to come out with six new bond funds, a first for this investment group.
- iShares is in the works of creating yet another domestic factor based ETF – this time focusing the fund one the key element: quality.
- WisdomTree is expanding again into emerging markets, planning three broad market funds along with a new fund in partnership with Vident International.
- Arrow Investments is looking to launch a new high yield bond fund after the success of GYLD over the last year, while also expanding its portfolio through a number of actively managed funds.
- KraneShares is looking to apply its experience of Chinese markets through a new A shares fund.
- IndexIQ has amended its original filing for a number of bull and bear funds placed earlier this year, adding a total of four new actively managed bulls to the already strong pipeline.
- RevenueShares is looking to create two new revenue weighted ETFs, each targeting emerging markets and dividend payers.
- ALPS is looking to tap inot the Barron’s 400 index through a proposed ETF, offering exposure to a select group from the Dow Jones US Total Stock Market.
- Fidelity is in motion once again, planning its first new fund in a long time, with the focus on actively managed portfolios of corporate bonds.
There was just a single closing this month, with iShares dropping the Diversified Alternatives Trust (ALT) and breaking its streak of no closures for over a decade.
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Disclosure: No positions at time of writing.