First Trust Launches Industrial Renaissance ETF (AIRR); Global X Adds to Guru Family (GURI, GURX)

by on March 13, 2014 | ETFs Mentioned:

Last week, investors saw a handful of funds make their debut, including First Trusts’ Dorsey Wright Focus 5 ETF (FV) and AdvisorShares’ YieldPro ETF (YPRO). This week, ETF issuers continued to fill the product pipelines, with five new funds hitting the street. First Trust added two more funds, while Global X added to its “Guru” family and newcomer Cambria introduced its third offering [see also Major Asset Class Returns Since the Fed's Taper Announcement].

First Trust rolled out two new equity ETFs, both of which charge an expense ratio of 0.70%:

  • RBA American Industrial Renaissance ETF (AIRR): This fund tracks the Richard Bernstein Advisors American Industrial Renaissance Index. The benchmark is designed to measure the performance of small and mid cap U.S. companies in the industrial and community banking sectors. The index selects companies that are most likely to benefit from the current American industrial renaissance that has been taking shape across the nation.
  • RBA Quality Income ETF (QINC): This ETF tracks Richard Bernstein Advisors Quality Income Index. The fund seeks to avoid “dividend-traps” that often occur with higher-yielding stocks by applying several layers of risk control that could help to select investments that are less likely to experience dividend cuts and related underperformance.

Global X  added two new guru replication ETFs [see 7 Charts to Put the ETF Industry in Perspective]:ETFs

  • GURU International Index ETF (GURI): This fund tracks the Solactive Guru International Index, which taps into the highest conviction ideas found in the 13F filings of a select group of hedge funds and other institutional investors. The fund invests in the top international holdings from this group of managers.
  • GURU Small Cap Index ETF (GURX): Utilizing the same strategy as GURU and GURI, this fund tracks the Solactive Guru Small Cap Index, which invests in 100 equally weighted companies with a market capitalization between $100 million to $3 billion.

Cambria Funds expanded its lineup, debuting its third ETF:

  • Cambria Global Value ETF (GVAL): This ETF is tracks the Cambria Global Value Index, which is comprised of roughly 100 stocks with strong value characteristics. The index also employs a valuation methodology that is similar to the cyclically adjusted price-to-earnings ratio (CAPE). GVAL’s holdings are selected from a universe of 45 countries located in both developed and emerging markets, including Brazil, Ireland, Austria, Italy, Portugal, and Spain.

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Disclosure: No positions at time of writing.