Citi Launches Income ETN; Source ETFs Makes U.S. Debut

by on September 18, 2014 | ETFs Mentioned:

Two ETFs made their trading debut this past week, with one continuing the trend of income for investors while another seeks similar exposure from an unfamiliar face. Below, we highlight these two new ETFs and what investors need to know about each [for more ETF news and analysis subscribe to our free ETF Daily Roundup].

Citi Rolls Out Income ETN

This marks Citigroup‘s third ETP, but its first that focuses on broad equities. The C-Tracks Exchange-Traded Notes Miller/Howard Strategic Dividend Reinvestor ETN (DIVC) tracks an index that invests in 30 U.S. stocks at one time. The holdings are equally weighted and chosen each quarter based on a few factors: dividend yield, expected growth of dividend yield, market valuation relative to book value, return on invested capital relative to price-to-earnings ratio and trailing 26-week stock price momentum.

Investors will be happy to see that the fund was well-seeded, launching with $25 million in assets while many other ETFs will launch with $5 million or less. This is likely a move by Citi to encourage investment and reassure investors that the ETN has plenty of assets behind it.

NYSESource ETFs Debuts in the U.S.

Source ETFs threw its hat into the U.S. ring after being one of the largest ETF issuers overseas, primarily in Europe. The company debuted the EURO STOXX 50 ETF (ESTX), which will track the largest companies across Europe. Tracking the EURO STOCC 50 Index, ESTX will compete with the likes of the mega-popular SPDR Euro STOXX 50 ETF (FEZ), which has well over $5 billion in total assets.

Source has more than 80 exchange traded products listed abroad that offer exposure from all industries, including equities, fixed, income, and even alternatives. Lee Kranefuss, one of the most involved in the successful iShares line of ETFs, is the executive chairman of Source as of this year. With a stable foothold in international markets and a proven ETF expert like Kranefuss, is seems that Source is poised to make a mark on the U.S. exchange traded product space. 

Follow me on Twitter @JaredCummans.

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Disclosure: No positions at time of writing.