A few new ETFs recently were launched. Goldman Sachs has a new ETF up its sleeve, as do BlackRock and WisdomTree. Furthermore, FlexShares introduces two new Currency Hedged Emerging and Developed Market ETFs.
Goldman Sachs Launches a New ActiveBeta ETF
Goldman Sachs launched another ActiveBeta® ETF: the Goldman Sachs ActiveBeta International Equity ETF (GSIE ). ActiveBeta® ETFs follow certain stock attributes when creating and managing their ETFs: good value, strong momentum, high quality and low volatility. GSIE is a passive ETF that tracks the Goldman Sachs ActiveBeta International Equity Index. With 776 holdings, you can be assured of diversification.
GSIE began trading on November 6, 2015, with an expense ratio of 0.35%.
Regional Breakdown:
- Europe ex-UK: 42.3%
- Japan: 22.6%
- UK: 17.1%
- Asia ex-Japan: 9.5%
- North America: 8.1%
GSIE Top 5 Sectors:
- Financials: 25%
- Consumer Discretionary: 16.8%
- Consumer Staples: 14.1%
- Health Care: 11.6%
- Industrials: 11.5%
Developed and Emerging Market Currency Hedged ETFs
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (TLDH ) provides exposure to domestic markets while excluding the U.S. Top country exposures are Japan, the UK, France, Canada and Germany. TLDH began trading on November 9, 2015, with an expense ratio of 0.47%.
TLDH Top 5 Sectors:
- Financials: 26.76%
- Industrials: 15.81%
- Consumer Discretionary: 15.20%
- Consumer Staples: 8.81%
- Health Care: 8.08%
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (TLEH ) provides exposure to the emerging market. Top country exposures are China, South Korea, Taiwan, India and South Africa. TLEH began trading on November 9, 2015. This ETF has a high expense ratio of 0.70% due to the fact it’s a currency hedged ETF.
TLEH Top 5 Sectors:
- Financials: 26.57%
- Information Technology: 17.34%
- Consumer Discretionary: 11.45%
- Industrials: 9.98%
- Materials: 8.54%
Both of these ETFs give exposure to long-term growth, value tilted equities. They track the performance of large-, mid-, small- and micro-cap equities. Because these are currency hedged ETFs, fluctuations in foreign currencies will be mitigated when investing in them.
International Currency Hedged Government Bonds, Anyone?
BlackRock just released the iShares Core International Aggregate Bond ETF (IAGG ) on November 10. This is an ETF with broad developed government bond holdings with ultra-short and long-term maturities. Treasuries are 64.7% of the holdings. Top 5 country exposures are the UK, Japan, France, Germany and Italy. The bond ratings are investment grade, ranging from BBB to AAA rated, per S&P major rating categories. Furthermore, this ETF is currency hedged to mitigate fluctuations between currencies. With a low expense ratio of 0.15%, it is a great way to gain exposure to the international bond market.
Currency Hedged Mixed With Small-Cap Dividends
WisdomTree just launched a new ETF: the WisdomTree Global Hedged SmallCap Dividend Fund (HGSD ). It seeks to provide exposure to small-cap dividend-paying companies globally while hedging currency fluctuations. HGSD is a hedged version of the WisdomTree Global SmallCap Dividend Fund (DLS ). It holds DLS and currency hedging instruments to remove currency risk. This ETF has the most exposure to Japan, UK, Australia, Sweden and Italy.
HGSD was launched today, November 19, 2015, and has an expense ratio of 0.43%.
HGSD Top 5 Sectors:
- Industrials: 25.14%
- Consumer Discretionary: 19.69%
- Financials: 17.62%
- Information Technology: 9.57%
- Materials: 7.97%
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