Direxion Launches Billionaire ETF; First Trust Debuts Short Maturity Fund (IBLN, FTSM)

by on August 7, 2014 | ETFs Mentioned:

The ETF world continued to widen the investing universe this week, as two new funds debuted. There are now approximately 1,650 U.S.-listed ETFs that are currently active with well over $2 trillion in total assets. Though exchange traded products still have a ways to go before they de-throne mutual funds, their low cost and transparent nature has made them among the fastest growing investment vehicles in the world [for more ETF news and analysis subscribe to our free ETF Daily Roundup].

Direxion Helps You Invest Like a Billionaire

Direxion is usually well-known for its leveraged and inverse products, but on Friday it debuted an ETF that had neither of those two attributes. Instead, the iBillionaire Index ETF (IBLN) utilizes the Form 13F filings of famous billionaire investors to see where they are putting their money. Looking at up to 10 billionaires at once, IBLN dives into the holdings of Warren Buffett, George Soros, Carl Icahn, John Paulson, and David Einhorn among others. The result is a fund that mirrors the investments of some of the financial world’s brightest minds.

Warren BuffettIBLN can also be followed with a mobile app that keeps investors up on their investment as well as the investments of some of the most prolific billionaires out there.

First Trust Reveals Actively-Managed Bond Fund

Active management has been growing (albeit slowly) in the ETF world. First Trust will look to continue that trend with its Enhanced Short Maturity ETF (FTSM), which launched yesterday. This ETF will hold investment-grade short duration securities in an effort to preserve capital for investors. Short maturity products and securities have caught the eye of the Street as many worry about how rising rates will impact their more long-term bond holdings, making FTSM’s timing very fruitful for investors.

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Disclosure: No positions at time of writing.