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
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • 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: Another Blockchain ETF With an AI Twist
News
Share

This Week's ETF Launches: Another Blockchain ETF With an AI Twist

David DierkingFeb 07, 2018
2018-02-07

Blockchain, the technology underlying bitcoin, continues to be all the rage on Wall Street.

With bitcoin ETFs getting shut down by the SEC, fund providers are looking to offer the next best thing – blockchain ETFs. This week, the fourth such product within just the past month makes its debut.

Here are this week’s new fund launches:

TickerNameIssuerLaunch DateETFdb.com CategoryExpense Ratio
(JPMB B+)JPMorgan USD Emerging Markets Sovereign Bond ETFJ.P. Morgan01/29/2018Emerging Markets Bonds0.39%
(KOIN B-)Innovation Shares NextGen Protocol ETFInnovator Management LLC01/30/2018Technology Equities0.65%
(TMFC B)Motley Fool 100 Index ETFMotley Fool Asset Management01/30/2018Large Cap Blend Equities0.50%
(RPUT C+)WisdomTree CBOE Russell 2000 PutWrite Strategy FundWisdomTree02/01/2018Diversified Portfolio0.43%
(KURE C)KraneShares MSCI All China Health Care Index ETFKraneShares02/01/2018China Equities0.79%

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


Content continues below advertisement

Innovation Shares Marries Blockchain with Artificial Intelligence

Cryptocurrencies and artificial intelligence are two of the hottest themes in investing right now, so imagine the potential in a strategy that targets both at once? The Innovation Shares NextGen Protocol ETF (KOIN B-) starts with a broad initial universe of companies, and then uses artificial intelligence to determine how engaged in the development or use of blockchain these companies are. The index creator’s natural language-processing algorithm looks for specific keywords within industry texts and online media to identify companies that are tied to blockchain technology. The fund currently reads more like a large-cap tech fund than a pure-blockchain play, with holdings such as Amazon (AMZN), Microsoft (MSFT), Visa (V), Intel (INTC), Cisco Systems (CSCO) and Nvidia (NVDA). It has just around 40 components and invests one-third of the portfolio overseas.

WisdomTree Launches Risk-Controlled Small-Cap Strategy

Writing options can be a great way for a fund to generate extra income, but it can also alter its risk/return profile. The WisdomTree CBOE Russell 2000 PutWrite Strategy Fund (RPUT C+) will write short-term at-the-money put contracts on the Russell 2000 and attempt to collect the option premiums without the options finishing in-the-money. This can be a winning strategy if the Russell 2000 Index continues to post gains, since, in that scenario, the put contracts would expire worthless. In a down market, however, losses could be amplified. WisdomTree touts the overlay strategy as providing the chance to earn above-average risk-adjusted returns, while lowering overall portfolio risk.

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

The Motley Fool Goes from Stock Picking to Money Management

The Motley Fool is a popular investor website that provides financial learning, including stock picks, tips on how to invest, retirement planning guidance and a list of the best credit cards available. The website dips its feet into the ETF marketplace by offering a new product that invests in its top stock picks. The Motley Fool 100 Index ETF (TMFC B) is designed to invest in the 100 largest, most liquid U.S. companies that have been recommended by The Motley Fool’s analysts and newsletters. The fund looks very similar to the S&P 500 at the top, with top holdings including names like Apple (AAPL), Microsoft, Amazon, Alphabet (GOOG) and Facebook.

JPMorgan Looks to Capitalize on Emerging Markets Rally

Emerging markets has been one of the world’s best-performing segments, with lots of money flowing into both equities and fixed income. The JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB B+) has the appearance of a broadly diversified portfolio of fixed- and floating-rate bonds, but it also applies filters for liquidity and country risk. It looks to spread its bets across multiple credit ratings in order to diversify. Emerging markets bonds are intriguing because they offer yields of 3-4% and higher. Since these come from less developed areas of the world, many of these bonds fall into the junk category, with roughly two-thirds of the portfolio rated as below investment grade. The fund’s expense ratio of 0.39% is one of the cheapest among emerging markets bonds ETFs.

KraneShares Finds Potential in Chinese Healthcare Companies

KraneShares specializes in funds focused primarily on China and the emerging markets. This week, it offers a new sector-specific fund from the region. The KraneShares MSCI All China Health Care Index ETF (KURE C) can invest in companies of all sizes within the rapidly growing sector. According to the fund’s website, China’s healthcare market is growing at a compound annual growth rate of 17%, with total healthcare expenditures in the country estimated to grow to more than $1 trillion by 2020. The fund can invest in pharmaceutical companies and biotechs, as well as producers of medical equipment and traditional Chinese medicines.

The Bottom Line

The blockchain ETFs are popping up at a furious pace and struggling to differentiate themselves. This is the first of the funds to use AI as a means of selecting names, but, like the other blockchain ETFs, this is more of a broad tech fund. The precedent set by The Motley Fool website crossing over into money management is one that could potentially be replicated by others down the road. Emerging markets is a hot segment of the market, so it’s not surprising to see J.P. Morgan bring a new fund to market, despite already having their name attached to the two biggest emerging markets bonds ETFs available, namely iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB A-) and VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC A+).

Sign up for ETFdb.com Pro and gain access to more than 50 all-ETF model portfolios, each of which is backed by a unique investment thesis.

» Popular Pages

  • Tickers
  • Articles

May 26

Main Management Market Note: May 26, 2023

May 26

Family Offices Embrace Crypto, While Needing Support

May 26

ETF Issuer League: Avantis, Summit Up, Global X

May 26

Active ETFs Positioned Better for Opportunities in High-Yield Bonds

May 26

Insurers Own Major Stakes in Fixed Income ETFs

May 26

Cash Flow Kings at Home With These ETFs

May 26

Counter U.S. Default Risk With Foreign Equity ETF AVDE

May 26

Vangaurd's EM Bond ETF Surprises With Fixed Income Protection

May 26

The Economy Matters: PCE, GDP, Durable Goods & Employment Numbers

May 26

SPYI Captures Huge Single Day Nvidia Pop, Enhances Income

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

JEPI

JPMorgan Equity Premium...

VTI

Vanguard Total Stock Market...

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

TLT

iShares 20+ Year Treasury...

BND

Vanguard Total Bond Market...

XLP

Consumer Staples Select...

BOTZ

Global X Robotics &...


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