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: Elkhorn Gets Big in a Hurry
News
Share

This Week’s ETF Launches: Elkhorn Gets Big in a Hurry

Aaron LevittJan 11, 2017
2017-01-11

With the new year now underway, ETF issuers have wasted no time launching a bevy of new products and funds.

Launch activity has been swift, and the vast bulk of the new products launched at the tail end of 2016/start of 2017 have followed the trend of smart-beta or fundamental indexing. However, a few issuers have continued to make a splash on the scene by launching some more traditional indexed products by filling holes left behind by larger ETF sponsors.

At the end of the day, 2017 is off to a good start and already shows promise of the new innovative funds that the year could bring. For investors, that’s win-win.

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

TickerNameIssuerETFdb CategoryExpense Ratio
(NURE B+)NuShares Short-Term REIT ETFTIAA-CREF/NuveenReal Estate0.35%
(XD )Elkhorn S&P Mid-Cap Consumer Discretionary PortfolioElkhornConsumer Discretionary Equities0.29%
(XS )Elkhorn S&P Mid-Cap Consumer Staples PortfolioElkhornConsumer Staples Equities0.29%
(XE )Elkhorn S&P Mid-Cap Energy PortfolioElkhornEnergy Equities0.29%
(XF )Elkhorn S&P Mid-Cap Financials PortfolioElkhornFinancial Equities0.29%
(XH )Elkhorn S&P Mid-Cap Health Care PortfolioElkhornHealthcare & Biotech Equities0.29%
(XI )Elkhorn S&P Mid-Cap Industrials PortfolioElkhornIndustrial Equities0.29%
(XK )Elkhorn S&P Mid-Cap Information Technology PortfolioElkhornTechnology Equities0.29%
(XM )Elkhorn S&P Mid-Cap Materials PortfolioElkhornBasic Materials0.29%
(XU )Elkhorn S&P Mid-Cap Utilities PortfolioElkhornUtilities Equities0.29%


Content continues below advertisement

Elkhorn Fills a Major Hole

ETF-sponsor Elkhorn is relatively new on the scene, but its pedigree runs deep in the sector. Founder Ben Fulton has been in the ETF industry since early days and has been on the teams that have helped develop some of the biggest funds of all time. Fulton’s fund company, Elkhorn, burst onto the scene last year and has continued to launch many active and smart-beta products targeting a broad range of sectors and asset classes. This week’s series of launches from Elkhorn has the fund company going a bit old-school and using classic indexing.

Surprisingly, investors have a glaring opportunity hole with the sheer amount of ETFs on the market today. Obviously, there’s a bevy of products tackling the various sectors of large-cap stocks. Investors even have plenty of choice regarding segments on the smaller end of the spectrum. However, those wanting to play the “Goldilocks World” of mid-caps are left out in the cold.

To that end, Elkhorn has released a suite of nine mid-cap sector funds. The ETFs track the standard market segments of the widely used Global Industry Classification Standard (GICS) system. It’s the system indexers and institutional investors use to confirm that an energy stock is an “energy stock” or that a consumer discretionary firm fits into its respective category.

The nine funds – Elkhorn S&P Mid-Cap Consumer Discretionary Portfolio (XD ),
Elkhorn S&P Mid-Cap Energy Portfolio (XE ), Elkhorn S&P Mid-Cap Financials Portfolio (XF ), Elkhorn S&P Mid-Cap Health Care Portfolio (XH ), Elkhorn S&P Mid-Cap Industrials Portfolio (XI ), Elkhorn S&P Mid-Cap Information Technology Portfolio (XK ), Elkhorn S&P Mid-Cap Materials Portfolio (XM ), Elkhorn S&P Mid-Cap Consumer Staples Portfolio (XS ) and Elkhorn S&P Mid-Cap Utilities Portfolio (XU ) – will be very similar in style to the uber-popular SPDR Select Suite of ETFs from State Street.

Rather than combing through the large-cap-focused S&P 500, the new ETFs from Elkhorn will use the mid-cap-focused S&P 400. Expenses for the ETFs are cheap as well. The entire suite only costs 0.29%, or $29 per $10,000 invested. In the end, the launches from Elkhorn fill a major hole for investors and their portfolios.

Try the ETF Screener to filter ETFs using criteria such as asset class, sector, region, liquidity and expenses to help build-out your portfolio.

Nuveen’s Quirky Real Estate Fund

Just like Elkhorn, mega-investment manager TIAA-CREF’s Nuveen division has recently begun its ETF journey. Late last year, the sponsor released several products. Nuveen kicks off 2017 with a quirky take on real estate investing.

Many leases on commercial properties are tied to measures of inflation and interest rates. As rates rise, rents go up. The problem is that some properties have long leases and won’t capture much of the upside in rates as quickly as they happen. The NuShares Short-Term REIT ETF hopes to overcome that.

NURE will track an index that only focuses on firms that own/lease shorter-termed properties. These include apartment buildings, hotels, self-storage facilities and manufactured home properties. The idea is that the shorter contracts – sometimes as short as a week – can capture the upside in rising rent rates faster than, say, an office building that is rented for years at a time. In the end, the firms inside NURE’s index should be able to release faster profit growth. And since they are real estate investment trust (REITs), they kick back that cash faster to investors as continually rising dividends.

It’s a unique take on the real estate/REIT marketplace. No other ETF on the market focuses on lease duration. TIAA-CREF/Nuveen could have a major hit on its hands if the dividend growth keeps up with expectations and rising rates.

Expenses for the quirky ETF are reasonable as well: coming in at just 0.35%. That puts it on the cheaper end of the spectrum when it comes to the real estate sector.

The Bottom Line

The launches from Nuveen and Elkhorn are perfect examples of how there is room for both smart-beta funds as well as more traditional indexed products. The real winners in this continue to be investors, who now have even more choices for their portfolios.

Sign up for ETFdb Pro and get access to real-time ratings on over 1,900 U.S. listed ETFs.

» Popular Pages

  • Tickers
  • Articles

Jun 09

How Advisors Use the Small-Cap ETF 'QWST' in Portfolios

Jun 09

S&P 500: The Battle on Two Fronts

Jun 09

This Is How New Bulls Are Born

Jun 09

Main Management Market Note: June 9, 2023

Jun 09

European Carbon Allowances Up 10%: The Summer Guide

Jun 09

A Complete Comparison of Top U.S. Real Estate ETFs

Jun 09

Could Now Be a Good Time for Value ETFs?

Jun 09

Fine Tuning Your Index Exposure With Direct Indexing

Jun 09

BNDI Generates Better Returns, Yields in Core Bond Allocations

Jun 09

Issuer League: WisdomTree and Dimensional Are Up

FNGS

MicroSectors FANG+ ETN

FNGU

MicroSectors FANG+ Index 3X...

QQQM

Invesco NASDAQ 100 ETF

SMH

VanEck Semiconductor ETF

VGT

Vanguard Information...

XLY

Consumer Discretionary Select...

IYW

iShares U.S. Technology ETF

BOTZ

Global X Robotics &...

VUG

Vanguard Growth ETF

FTEC

Fidelity MSCI Information...


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