Newcomer Reality Shares Plans 3 Dividend ETFs; FactorShares to Close 5 ETFs

by on November 22, 2013

This week, investors saw the Dow Jones Industrial Average break the 16,000 mark during intraday trading. Despite the record, Wall Street shifted its focus to the Fed as the latest FOMC minutes were released and Janet Yellen took one step closer to becoming  the next central bank leader. In the minutes, policy makers “generally expected that the data would prove consistent with the committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months.” Meanwhile, the Senate Banking Committee voted to approve Yellen’s nomination, sending her name to the full Senate for a final confirmation vote [see The Fed Effect: How Monetary Policy Impacts Your ETFs].

On the ETF front, it was a relatively quiet week with only one new fund launching. A newcomer to the industry, however, did file paperwork to make its ETF debut.

Dividend ETFsReality Shares Advisors, a San Diego based firm, announced its plans to launch its first 3 ETFs:

  • Reality Shares Isolated U.S. Dividend Growth Index ETF: This ETF will track an index that reflects the level of “implied dividends” on a select group of large capitalization securities listed for trading in the U.S. The term “implied dividends” is sometimes used to refer to the level of dividends an issuer is expected to pay during a given time period. The fund will use a combination of long positions in both stocks and ETFs, as well as long and short positions in options based on U.S. large capitalization equity securities and indexes comprised of U.S. large capitalization equity securities such as the S&P 500 Index and NASDAQ 100 Index.
  • Reality Shares Isolated Global Dividend Growth Index ETF: This fund will track an index that also focuses on “implied dividends,” but will invest in large cap stocks trading in the U.S., Europe and Japan [see The 10 Most Popular Dividend ETFs: What You Need to Know].
  • Reality Shares Isolated Dividend Growth ETF: This actively-managed fund will utilize a strategy that is designed to isolate and capture the growth of the level of dividends expected to be paid on a portfolio of large-capitalization equity securities while attempting to minimize the fund’s exposure to the price fluctuations associated with such securities.

In other ETF news, FactorShares announced its plans to liquidate  its five spread ETFs on November 22, 2013:

  • 2X Gold Bull/S&P500 Bear (FSG)
  • 2X S&P500 Bull/TBond Bear (FSE)
  • 2X Oil Bull/S&P500 Bear (FOL)
  • 2X TBond Bull/S&P500 Bear (FSA)
  • 2x S&P 500 Bull/USD Bear (FSU)

Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.