While the ETF industry didn’t see over-the-top activity, the past week was fairly busy, with 11 new ETFs making their debut and six ETFs shutting down. Among the launches were two covered call funds from Goldman Sachs and a new fund from YieldMax that offers a covered call strategy tied to the stock of Moderna.
In addition to the YieldMax ETF, there were three more single-stock fund launches from Kurv, a new brand in the ETF space. The three Kurv ETFs, like the YieldMax fund, implement a synthetic covered call options strategy that aims to generate income while providing exposure to the price performance of the underlying stock. The new funds are as follows:
FT Cboe ETF Launches
First Trust further expanded its lineup of buffer ETFs with the Monday launch of the FT Cboe Vest U.S. Equity Moderate Buffer ETF – October (GOCT) and the FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF – October (XOCT). The two funds offer exposure to the price performance of the SPDR S&P 500 ETF Trust (SPY ) up to a cap while protecting against downside losses up to a certain percentage.
For GOCT, that means the fund has an upside cap before expenses of 15.50% and a downside buffer that protects investors against the first 15% of losses. Meanwhile, XOCT also protects against the first 15% of losses, but instead of unleveraged exposure to the price performance of SPY, it offers twice the upside performance of the reference asset up to a cap before expenses of 12.80%.
Both funds are listed on Cboe Global Markets and have expense ratios of 0.85%.
First Trust also launched the FT Cboe Vest Laddered Moderate Buffer ETF (BUFZ) on Wednesday. The fund invests in the 10 ETFs in First Trust’s family of “Moderate Buffer” ETFs. Currently, there are 10 ETFs in the family, with funds that reset in November and December yet to launch. By laddering its exposure across multiple ETFs, BUFZ reduces the overall downside risk of its whole portfolio.
BUFZ has an expense ratio of 1.05% and lists on Cboe Global markets.
BlackRock and DWS Debut New ETFs
On Thursday, BlackRock launched the BlackRock Large Cap Core ETF (BLCR). The actively managed fund provides access to U.S. large-cap equities and related derivatives, selecting investments with an eye to companies exhibiting attractive valuations. The prospectus notes that the fund can shift into short-term debt when the market outlook calls for a defensive stance.
BLCR has an expense ratio of 0.36% and is listed on the Nasdaq stock market.
Finally, DWS rolled out the Xtrackers USD High Yield BB-B ex Financials ETF (BHYB) on Friday. The fund tracks the ICE BofA BB-B Non-FNCL Non-Distressed US HY Constrained Index of domestically issued bonds drawn from the top tier of the high-yield space. BHYB has an expense ratio of 0.20% and lists on Cboe Global Markets.
Several funds completed their closures during the week. Those ETFs and their last days of trading are as follows:
- Parabla Innovation ETF (LZRD ), October 23
- Advocate Rising Rate Hedge ETF (RRH ), October 24
- AdvisorShares Alpha DNA Equity Sentiment ETF (SENT ), October 24
- AXS Brendan Woods TopGun Index ETF (TGN ), October 24
- Simplify Developed Ex-US PLUS Downside Convexity ETF (EAFD ), October. 27
- Simplify Emerging Markets Equity PLUS Downside Convexity ETF (EMGD ), October 27
Although not a traditional closure, First Trust announced that it would be merging four of its closed-end funds into a new fund, the First Trust Energy Income Partners Enhanced Income ETF. An effective date was not provided. The merging CEFs are as follows:
- First Trust Energy Income and Growth Fund (FEN)
- First Trust MLP and Energy Income Fund (FEI)
- First Trust New Opportunities MLP & Energy Fund (FPL)
- First Trust Energy Infrastructure Fund (FIF)
Multiple ETFs are seeing material changes to their names and tickers. On October 20, the Loncar China BioPharma ETF (CHNA ) was absorbed into the Range Cancer Therapeutics ETF (CNCR ). Then, on Tuesday, the Rayliant Quantamental Emerging Market Equity ETF (RAYE ) changed its name to the Rayliant Quantamental Emerging Market ex-China Equity ETF.
Looking ahead, the iShares North American Tech-Multimedia Networking ETF (IGN) will change its ticker to IDGT on December 15.
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