June ETF Roundup: Launches, Filings And Closures

by on July 2, 2013 | ETFs Mentioned:

June was a volatile month on Wall Street, with investors feeling a major change in the investment landscape. Though speculations of Fed tapering dominated the markets, emerging markets equities stole the spotlight after experiencing a massive exodus of funds towards the end of the month. The BRIC markets (Brazil, Russia, India, and China) were among the worst hit as their economies are starting to show signs of plateauing after years of astronomical growth [for updates on all new ETFs, sign up for the free ETFdb newsletter].

June also saw a number of new funds launch during  the month, with 17 new ETFs entering the ring. And 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 ETFs

New exchange-traded products that began trading in June include:

    1. June Is Baseball Seasondb X-trackers Municipal Infrastructure Revenue Bond Fund (RVNU) and Regulated Utilities Fund (UTLT)Deutsche Bank was first on the scene this month, launching a municipal bond fund and an ETF focused on the potential of the utilities sector.
    2. Barron’s 400 ETF (BFOR): ALPS has modeled this new fund around the widely popular Barron’s 400 index, composed of the most fundamentally sound and attractively priced stocks from all corners of the market.
    3. Total International Bond ETF (BNDX) and Emerging Markets Government Bond ETF (VWOB): These Vanguard ETFs are both focused on the international bond market, with BNDX taking a broader view of the space while VWOB focuses on emerging markets.
    4. Credit Suisse Commodity Rotation ETN (CSCR) and Commodity Benchmark ETN (CSCB): These ETNs offer a new view into commodity investing, with CSCB offering exclusive long exposure to a monthly re-balanced portfolio of rolling futures contracts, while CSCR is also searching for the contracts with low chances of contango.
    5. iShares MSCI Colombia Capped ETF (ICOL): iShares has entered this relatively untouched Latin American market through a portfolio of companies that either are based in Colombia or have the majority of business in the country.
    6. PowerShares Global Short Term High Yield Bond Portolio (PGHY): Holding only short term junk bonds, this new ETF tries to distinguish itself from the growing high yield market space.
    7. High Income ETF (YYY): Newcomer, YieldShares debuted its ETF career with YYY, a diversified portfolio fund seeking high current income.
    8. VelocityShares Tail Risk Hedged Large Cap ETF (TRSK) and Volatility Hedged Large Cap ETF (SPXH):  Using a portfolio of both equities and VIX futures, TRSK looks to hedge the tail risk that exists in the S&P 500. Much like TRSK, the SPXH also uses a combination of equities and VIX futures, but uses them to disperse any volatility risk that effects the S&P 500.
    9. Horizons S&P 500 Covered Call ETF (HSPX): This Exchange Traded Concepts ETF tracks an index that consists of long positions in the stocks of the S&P 500 Index and corresponding short (written) call options on option-eligible stocks in the S&P 500 Index.
    10. The Direxion Daily Japan Bull ETF (JPNL) and Bear ETF (JPNS): Tied to the MSCI Japan Index, these Direxion funds offer inverse and leveraged exposure to the Japanese equity market.
    11. Market Vectors Israel ETF (ISRA): By tracking the performance of the largest and most liquid publicly traded Israeli companies, this Van Eck ETF hopes to gain exposure to this relatively untouched Middle Eastern country.
    12. ALPS International Sector Dividend Dogs ETF (IDOG): Following the lead of (SDOG), this new dividend ALPS ETF broadens its search for investments to include all international markets, focusing on the five best performing companies from each of the ten global market sectors.

Coming Soon

Few ETFs were filed for this month, which could be attributed to the heavy tide of funds that came in at the end of June:

      • ProShares is looking to grow its portfolio with eight new CDS ETFs focusing on both North American and European credit risk through investment grade and high yield issues.
      • iShares, one of the largest issuers with almost 300 ETFs on the market, is looking to expand its already large portfolio with the creation of four new target maturity corporate bond ETFs.
      • AdvisorShares filed paperwork for a new fund in partnership with Treesdale Partners LLC, focused on mortgage products.

ETF Closings

After a number of strong months this year, funds finally snapped this month, leading to the closure of a number of under-invested products.

      • UBS shut down seven funds on June 5th with little warning after low inflows and investor interest: ETRACS Next Generation Internet ETN , ETRACS Monthy 2x Leveraged ISE Cloud Computing TR Index ETN , ETRACS Monthy 2x Leveraged Next Generation Internet ETN , ETRACS ISE Solid State Drive Index ETN , ETRACS 2x Leveraged ISE Solid State Drive Index ETN , ETRACS Short Platinum (PTD), ETRACS DJ-UBS Commodity 2-4-6 Blended Futures ETN (BLND).
      • AdvisorShares closed it’s doors on the AS Rockledge SectorSAM ETF (SSAM) due to negative returns and low investor interest. Shares of SSAM stopped trading on June 14th.
      • Guggenheim has liquidated its Yuan Bond ETF (RMB), explaining in a press release that the fund was distracting from the otherwise strong Guggenheim portfolio. Shares of RMB also stopped trading on June 14th

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Disclosure: No positions at time of writing.