2 Issuers Make Their Debut on Wall Street; Barclays Launches TAPR

by on July 17, 2014 | ETFs Mentioned:

It’s been a busy week for Wall Street, with investors digesting a slew of earnings and economic reports. On the earnings front, Citigroup, JP Morgan, Goldman Sachs, Intel managed to beat analyst earnings and revenue expectations, while Bank of America reported a 43% drop in profit, as well as a $650 million settlement with AIG over private lawsuits tied to mortgages [see How Much of Wall Street's Major Firms Do ETFs Actually Own?].

Meanwhile, investors also turned their attention to Federal Reserve Chairwoman Yellen’s Congressional testimony, where she suggested the Fed is in no rush to raise rates: “Given the economic situation that I just described, we judge that a high degree of monetary policy accommodation remains appropriate.”

In ETF news, two new issuers made their debuts on Wall Street, while Barclays also launched a new inverse bond fund.

Sprott Asset Management Launches Gold Miner ETFGold Miners

On July 15, Toronto-based Sprott Asset Management launched its Gold Miners ETF (SGDM). The fund tracks the Sprott Zacks Gold Miners Index, which  uses a transparent, rules-based methodology that is designed to identify gold stocks with attractive investment merit.

The methodology was developed based on Sprott’s experience as a long-time gold sector investor and joint research with Zacks, and is design to incorporate three factors that have historically been strong predictors of long-term performance of gold stocks. The three factors are based on revenue growth, balance sheet strength, and beta to the price of gold.

The resulting portfolio consists of 25 individual stocks, most of which are large- and mid-cap companies. The fund charges an expense ratio of 0.57%.

Calamos Introduces Growth ETF

Chicago-based Calamos launched its Focus Growth ETF (CFGE), which began trading on July 15. The fund is actively managed and focuses on a select portfolio of equities issued by “blue chip” U.S. companies that offer opportunities for growth.

The management team will factor in company fundamentals when building and rebalancing the portfolio, including global presence, strong and/or accelerated earnings growth, and solid returns on invested capital. 

Currently, CFGE’s portfolio consists of about 35 individual holdings, with Apple, Google, and Facebook given the largest weightings. The fund charges an expense ratio of 0.90%.

Barclays Debuts Inverse Treasury Fund

Barclays launched its Inverse U.S. Treasury Composite ETN (TAPR), which began trading on July 15. The fund tracks the Barclays Inverse U.S. Treasury Futures Composite Index, which employs a strategy that tracks the sum of the returns of periodically rebalanced synthetic short positions in equal face values of each of the 2-year, 5-year, 10-year, long-bond and ultra-long U.S. Treasury futures contracts.

Essentially, the ETN is designed to help investors hedge against or benefit from a rise in U.S. dollar Treasury yields. The fee rate for the ETN is 0.43%.

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Disclosure: No positions at time of writing.