Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. This Week’s ETF Launches: Out With the Old and in With the New
News
Share

This Week’s ETF Launches: Out With the Old and in With the New

Aaron LevittNov 23, 2016
2016-11-23

This week was a little weird for the exchange-traded fund (ETF) industry. On one hand, you had some pretty interesting launches that fleshed out existing product lines. Then you had the complete closure of some of the most successful products on the market. And if that wasn’t enough, you had a reconfiguration of an ETF that was nearly seven years old.

The activity was varied, but the end result is that investors still have plenty of innovation and new products to choose from when building out their portfolios.

For a list of all new ETF launches, take a look at our ETF Launch Center.

TickerNameIssuerETFdb CategoryExpense Ratio
(USRT)iShares Core U.S. REIT ETFiSharesReal Estate0.08%
(VNLA)Janus Short Duration Income ETFJanusCorporate Bonds0.35%
(EFAS)Global X MSCI SuperDividend EAFE ETFGlobal XForeign Large Cap Equities0.55%
(JPSE)JPMorgan Diversified Return U.S. Small Cap Equity ETFJ.P. MorganSmall Cap Blend Equities0.39%


Content continues below advertisement

The Three Launches

This week’s new products all come from existing ETF sponsors – Janus, J.P. Morgan and thematic fund pioneer Global X. Both Global X and J.P. Morgan filled holes in their existing product lines, while Janus got into the active ETF game with its launch.

J.P. Morgan launched the JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE). The fund follows the investment manager’s successful line of smart-beta products that use fundamental screening to choose their underlying holdings. This time the tilt is towards small caps domiciled in the United States.

JPSE will track a proprietary index – the Russell 2000 Diversified Factor Index – that will screen the broader world of small caps for those stocks that meet value, quality and momentum criteria. The hope is that the fund will be able to outperform the benchmark Russell 2000. Expenses run at 0.39%, or $39 per $10,000 invested.

Global X also expanded on a very successful subset of funds with its launch this week. Its SuperDividend suite, which features the $800 million SuperDividend ETF (SDIV A), has been a great source for yield-starved investors in the current low-interest rate environment. However, despite covering a multitude of regions and sectors, the SuperDividend lineup was missing a developed market sister. Launched on November 11, Global X plugged the gap with the Global X MSCI SuperDividend EAFE ETF (EFAS).

EFAS will follow a similar pattern of tracking the highest yielding dividend stocks in a given market or sector. This time, EFAS will scour the benchmark MSCI EAFE Index. This index includes all the developed market nations in Europe, Australasia and the Far East. We’re talking about places like Germany, Japan and New Zealand. EFAS caps the number of stocks at 50 and pays a monthly dividend. Expenses for the new ETF run at just 0.55%.

To get more information about Global X’s SuperDividend products, check out their issuer page here.

Finally, this week saw a new active launch by mutual fund powerhouse Janus. Janus already has a suite of smart-beta and thematic funds under its belt, but this was its first active and fixed-income ETF – the Janus Short Duration Income ETF (VNLA).

VNLA’s ticker describes the news fund’s objective to a “T”. The “vanilla” approach of the fund will have it seeking to provide steady income and to consistently outperform the LIBOR 3-month rate. The fund will invest in a variety of ultra-short duration, commercial paper, time deposits and other short-term bonds in order to complete its goals. Basically, VNLA is designed to be a cash proxy. Given the recent changes to money market funds, cash proxy ETFs could see huge inflows. Janus is getting out ahead of the game.

iShares Reconfigures

iShares core lineup continues to be a big hit with investors. The suite of large, easy-to-understand indexes and ETFs has racked up some major dollars from both retail and institutional investors. What was missing from the lineup was a broad way to invest in real estate. But rather than launch a new fund, BlackRock decided to take the iShares Real Estate 50 ETF (FTY B+) and change it slightly.

The iShares Core U.S. REIT ETF (USRT) will drop its expense ratio to just 0.08% and change the index to a broader mandate: the FTSE NAREIT Equity REITS Index. Instead of tracking just the 50 largest REITs in the U.S, it will now track all of them. In the end, the changes should breathe new life into one of iShares smallest real estate funds.

Want more information on iShares and its core lineup’s low expenses? Check out BlackRock Lowers Expenses for 15 ETFs.

Credit Suisse AG Delists

Usually, when a product has nearly $1.5 billion in assets, sponsors won’t get rid of it. But that’s exactly what is happening with the uber-popular VelocityShares 3x Inverse Crude Oil ETN (DWTI C) and the VelocityShares 3x Long Crude Oil ETN (UWTI B-). Despite being hugely popular with traders, Credit Suisse has decided to get rid of the exchange-traded notes (ETNs). Well, sort of. What it is actually doing is a bit more sinister.

It’s going to delist them and suspend issuance of new shares of (UWTI B-) and (DWTI C). What that means for investors is that after December 8, you won’t be able to trade them. Depending on your broker, you’ll either have to pay huge fees to try and dump, or worse, you’ll be stuck holding them until they expire in 2032. If you hold them, sell them now.

The Bottom Line

This week saw a flurry of ETF activity. Despite the closure of two successful products, the net result was positive. Several fund lineups received much needed gap fillers. In the end, investors have just that many more funds from which to choose.

For more ETF news and analysis, subscribe to our free newsletter.

» Popular Pages

  • Tickers
  • Articles

May 26

This ETF Gives Exposure to the Next Gen Nasdaq Leaders

May 26

Innovator Offers Upside With a Floor on Downside Risk

May 26

A Guide to the Advantages, Tradeoffs, and Risks of TIPS

May 26

Pacer’s Cash Cows Milk $6 Billion From Its Investors

May 26

SATO and BLKC Impacted as Bitcoin Miners Rebound

May 26

There's More to Crypto than Just Currency

May 26

Sentiment for Bonds Could Improve: An ETF to Consider

May 26

BondBloxx Launches 3 High Yield Corporate Bond ETFs

May 26

Surprising Bond Segment Can Help Fixed Income Investors

May 26

GINN Increases as Major U.S. Indexes Rally

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

ARKK

ARK Innovation ETF

VTI

Vanguard Total Stock Market...

XLE

Energy Select Sector SPDR...

WEAT

Teucrium Wheat Fund

DBA

Invesco DB Agriculture Fund

TQQQ

ProShares UltraPro QQQ


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X