ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • 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
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. This Week’s ETF Launches: A Kick To The Core, A Reboot and An Emerging Dividend Play
News
Share

This Week's ETF Launches: A Kick To The Core, A Reboot and An Emerging Dividend Play

Aaron LevittNov 30, 2016
2016-11-30

With the final month of 2016 quickly approaching, the number of new exchange-traded funds (ETFs) has slowed to a crawl.

However, that hasn’t stopped issuers from releasing some interesting products. This week featured two new ETFs, as well as one reissue. The three new products managed to cover a lot of ground – equities, bonds and commodities. Not to mention straight-up indexing, smart beta and active management styles. While it was a slow week, it was still pretty impressive.

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

TickerNameIssuerETFdb CategoryExpense Ratio
(BNDC B)FlexShares Core Select Bond FundNorthern TrustTotal Bond Market0.35%
(LVHE C)Legg Mason Emerging Markets Low Volatility High Dividend ETFLegg MasonEmerging Market Equities0.50%
(OILB )iPath Series B S&P GSCI Crude Oil Total Return Index ETNBarclay’sCommodities0.45%


Content continues below advertisement

Northern Trust Goes Active

Most people don’t realize it, but mutual fund and ETF sponsor Northern Trust is one of the largest indexers on the planet. So when it does an actively managed fund, investors should take notice. In this case, Northern Trust chose to take an active approach to core bond exposure through its very successful FlexShares line of ETFs.

Use our Head-to-Head Comparison tool to compare two ETFs issued by Northern Trust and see which one makes more sense for your portfolio.

Just like the name implies, FlexShares Core Select Bond Fund (BNDC B) is designed to be a core or one-stop-shop bond fund for investors and their portfolios. As a total bond fund, BNDC will invest in a variety of U.S. IOUs. This can include Treasury/government debt, corporate bonds and junk/high-yield bonds. Perhaps more importantly, the fund can invest in a variety of maturities and durations to limit interest rate risk. Using Northern Trust’s own credit research team, BNDC’s holdings will shift in reaction to interest rate levels, the shape of the yield curve and credit spread relationships. The goal will be a high level of total return – dividends and capital gains on the underlying holdings.

And speaking of those holdings, BDNC will hold other ETFs, rather than individual bonds. Although, it does currently hold individual Treasury bonds as it waits to grow its assets. By using other ETFs, BNDC will be able to shift its underlying holdings with ease as market conditions change. Choosing very liquid fixed-income ETFS – such as current holdings FlexShares Disciplined Duration MB ETF (MBSD B-) or iShares 3-7 Year Treasury Bond ETF (IEI B+) – also helps it to reduce trading costs, which is a major hurdle for active ETFs.

Expenses for BNDC run a cheap at 0.35% or just $35 per $10,000. That makes it an ideal way for investors to add bond exposure without any of the hassles that go into credit or interest rate research.

Legg Mason Completes Its Suite

Like many traditional mutual fund managers, Legg Mason has seen the writing on the wall. In order to compete with cheap index ETFs, managers have to offer some sort of ETFs in their product lines. Legg Mason has chosen to go the smart beta route, and it has been pretty successful at gaining assets. Its latest addition completes its set of low beta, high dividend products.

Want to see how many ETFs Legg Mason has? What about other issuers? Then, take a peek at our Issuers page.

Already featuring ETFs that use the concept in the U.S. (LVHD A) and the developed international world (LVHI A), Legg Mason has launched the Legg Mason Emerging Markets Low Volatility High Dividend ETF (LVHE C).

LVHE will track the QS Emerging Markets Low Volatility High Dividend Index. Like its sister funds, the new ETF will screen for stocks that have high dividend yields as well as low price and earnings volatility, but this time turning its attention towards emerging market stocks. These screens allow investors to score a high yield, but have the earnings and price action to back up that yield. You’re not getting firms in trouble. The ETF gives investors access to a relatively ignored segment of the dividend marketplace.

Expenses for LVHE run at 0.50%.

Barclay’s Gets Oily… Again

Exchange-traded notes (ETNs) have been hit with a wave of closures and suspensions in recent months. Major issuer Barclay’s followed the herd and did so with the popular iPath Crude Oil Futures ETN (OIL A-). The real reasons behind the suspension in new shares of OIL were not made clear, but since the announcement the ETN has drifted wildly from its NAV.

And like a lot of recent suspensions, Barclay’s has followed with a reissue of the closed products under a different ticker and name. The iPath Series B S&P GSCI Crude Oil Total Return Index ETN (OILB ) is basically the same fund and it will track the same index: the S&P GSCI Crude Oil Total Return Index. This provides exposure to near-dated West Texas Intermediate crude oil futures. The only difference is OILB will feature a lower expense ratio of 0.45%.

Expenses matter. BlackRock gets that fact. Read BlackRock Lowers Expenses for 15 ETFs for more information.

The Bottom Line

While the end of the year has slowed ETF issuance, what has been issued continues to be quality funds. The three new ETFs should find a home in many portfolios and become successful in their own right.

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

» Popular Pages

  • Tickers
  • Articles

Jun 01

Mega-Caps for Mega Returns? The USMC ETF

Jun 01

When Broad Commodities Tumble, Consider Carbon Allowances

Jun 01

Hartford Rolls Out Active Core Bond ETF Strategy

Jun 01

Advisors Can Use Multifactor ETF ROUS to Take Smarter Risks

Jun 01

Currency-Hedged ETF DXJ Nears $2 Billion

Jun 01

Exchange Registration Now Open to Advisors

Jun 01

In Market Uncertainty, Play the Long Game Using Nationwide ETFs

Jun 01

CNBC Interviews John Davi About ETF Flows & AI

Jun 01

The Tech Sector Thumbs Its Nose at Higher Rates

Jun 01

Three Keys to Active ETF Investing in 2023

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

SMH

VanEck Semiconductor ETF

VGT

Vanguard Information...

IYW

iShares U.S. Technology ETF

JEPI

JPMorgan Equity Premium...

SCHD

Schwab US Dividend Equity ETF...

VTI

Vanguard Total Stock Market...

XLK

Technology Select Sector SPDR...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X