This Week in ETFs: Closures Outnumber New ETFs

Launches during the week included funds from BondBloxx, WisdomTree, Innovator, JPMorgan, and Range ETFs.

The Tema Neuroscience and Mental Health ETF (MNTL) was among this week’s launches. The fund is actively managed and targets pure-play companies that generate at least half of their revenue from products and services that are used in the diagnosis and treatment of neurological and mental health illnesses. The fund has an expense ratio of 0.75% and is listed on the Nasdaq stock exchange.

The Mohr Industry ETF (INAV) also launched during the week. It is an active fund that uses a tactical strategy to invest in other ETFs targeting specific sectors or industries, but it can allocate to broad index-based ETFs or switch the assets into money market funds when warranted. The fund has an expense ratio of 1.20% and is listed on the CBOE BZX Exchange.

Defiance launched the Defiance Treasury Alternative Yield ETF (TRES), which is sub-advised by ZEGA Financial. The actively managed fund combines exposure to short-term U.S. Treasury securities with an options overlay to generate income. The fund has an expense ratio of 0.75% and is listed on the Nasdaq stock market.

On Thursday, it was announced that the Inverse Cramer Tracker ETF (SJIM B-) will stop trading as February 13. The exchange traded fund was designed to short equities recommended by TV personality Jim Cramer. Its counterpart fund, the *Long Cramer Tracker ETF (LJIM ), liquidated in September 2023.

Also during the week, Global X announced it would be trimming its lineup of more than 100 ETFs by closing 19 of its smallest products. The number includes 10 of the firm’s 11 China sector ETFs among other funds. February 16 is expected to be their last day of trading. The affected ETFs are as follows:

• Global X MSCI China Communication Services ETF (CHIC A-)
• Global X MSCI China Energy ETF (CHIE C+)
• Global X MSCI China Health Care ETF (CHIH )
• Global X MSCI China Industrials ETF (CHII A-)
• Global X MSCI China Information Technology ETF (CHIK )
• Global X MSCI China Materials ETF (CHIM C+)
• Global X MSCI China Real Estate ETF (CHIR )
• Global X MSCI China Consumer Staples ETF (CHIS )
• Global X MSCI China Utilities ETF (CHIU )
• Global X MSCI China Financials ETF (CHIX B)
• Global X MSCI Next Emerging & Frontier ETF (EMFM B)
• Global X Carbon Credits Strategy ETF (NTRL B-)
• Global X MSCI Pakistan ETF (PAK C)
• Global X MSCI Portugal ETF (PGAL B-)
• Global X Health & Wellness ETF (BFIT B)
• Global X China Biotech Innovation ETF (CHB )
• Global X Green Building ETF (GRNR )
• Global X Cannabis ETF (POTX )
• Global X Metaverse ETF (VR )

Another three ETFs completed their closures during the week. These include the following:

• WisdomTree International ESG Fund (RESD A-)
• WisdomTree Emerging Markets ESG Fund (RESE B+)
• WisdomTree U.S. ESG Fund (RESP B)

The week also saw material changes made to existing ETFs. Among them, GraniteShares changed the levels of leveraged exposure on 30 ETFs, including funds that are currently trading and some in registration. The GraniteShares single-stock ETFs will no longer offer leveraged or inverse leveraged ETFs offering 1.25x, 1.5x, or 1.5x exposures. Instead, those ETFs will all uniformly provide 2x exposure.

Four iShares ETFs also underwent some key changes as follows:

• The iShares U.S. Fixed Income Balanced Risk Factor ETF (FIBR C+) changed its name to the iShares U.S. Fixed Income Balanced Risk Systematic ETF.
• The iShares High Yield Bond Factor ETF (HYDB A-) changed its name to the iShares High Yield Systematic Bond ETF, and its index changed from the BlackRock High Yield Defensive Bond Index to the BlackRock High Yield Systematic Bond Index.
• The iShares Investment Grade Bond Factor ETF (IGEB A-) changed its name to the iShares Investment Grade Systematic Bond ETF and its index from the BlackRock Investment Grade Enhanced Bond Index to the BlackRock Investment Grade Systematic Bond Index.
• The iShares USD Bond Factor ETF (USBF ) changed its name to the iShares USD Systematic Bond ETF and its index from the BlackRock USD Bond Factor Index to the BlackRock USD Systematic Bond Index.

Looking ahead, the Strategy Shares Gold-Hedged Bond ETF (GLDB B+) will change its ticker to GOLY as of February 1.

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