This Week in ETFs: iShares Heads Into Buffer Funds

BlackRock stormed into the defined outcome ETF space with two funds that offer buffered exposure to the price performance of the iShares Core S&P 500 ETF (IVV A) via flexible exchange options. However, BlackRock is offering its own take on the concept as the two funds reset quarterly rather than annually. They are also priced very aggressively with expense ratios of just 0.50%. Most defined outcome ETFs charge upwards of 79 basis points.

The iShares brand also rolled out the iShares iBonds Dec 2033 Term Treasury ETF (IBTO ) on the Nasdaq stock exchange. The fund tracks an index of Treasury securities maturing in December 2033 and has an expense ratio of 0.07%. It joins 10 other target maturity ETFs in the iBonds family that cover Treasury securities maturing in specific years.

Other launches during the week included four actively managed ETFs of ETFs from Avantis as well as a California municipal bond fund from Dimensional Fund Advisors.

Geared funds featured prominently during the week. Volatility Shares also debuted a leveraged cryptocurrency ETF offering 2x exposure to bitcoin futures. And the Bank of Montreal unveiled two ETNs offering 3x leveraged and inverse exposure to the auto industry.

Natixis also launched a non-transparent actively managed equity ETF targeting large-cap U.S. growth stocks. And Simplify Asset Management debuted an actively managed opportunistic credit ETF that invests in fixed income securities while also implementing a derivatives-based hedging strategy. iM Global Partner added an ETF to its lineup that relies on an actively managed dividend growth strategy.

The biggest development in closures during the week is the announcement that the lineup of Emerge EMPWR ETF family will close in July. The five funds are as follows:

• Emerge EMPWR Sustainable Dividend Equity ETF (EMCA C+)
• Emerge EMPWR Sustainable Select Growth Equity ETF (EMGC C)
• Emerge EMPWR Sustainable Global Core Equity ETF (EMZA C+)
• Emerge EMPWR Sustainable Emerging Markets Equity ETF (EMCH C+)
• Emerge EMPWR Unified Sustainable Equity ETF (EMPW C+)

The funds debuted less than a year ago in September 2022 and featured exclusively female managers. They will cease to trade before the market opens on July 10.

While the Constrained Capital ESG Orphans ETF (ORFN B) closed during the week, there are several other ETFs expected to close in July. The Amplify Digital & Online Trading ETF (BIDS C+) will shutter as of July 5, while the Senior Secured Credit Opportunities ETF (SECD B) will have its last day of trading on July 13.

The FlexShares ESG & Climate High Yield Corporate Core Index Fund (FEHY B+) will see its last day of trading on July 11, while the Fount Metaverse ETF (MTVR C) will cease to trade after the market close on July 25

Finally, the ALPS Hillman Active Value ETF (HVAL C) will close near the end of the month, and trading will cease before the market opens on July 28.

There were also several name changes taking place during the week. The FIS Biblically Responsible Risk Managed ETF (PRAY B) is now known as the FIS Christian Stock Fund. Meanwhile, the FolioBeyond Rising Rates ETF (RISR B-) changed its name to the FolioBeyond Alternative Income and Interest Rate Hedge ETF.

The Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUSA B+) changed its name to the Nuveen ESG 1-5 Year U.S. Aggregate Bond ETF, while the Principal U.S. Small-Cap Multi-Factor ETF (PSC B) became the Principal U.S. Small-Cap ETF.

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