Despite an uptick in activity during the prior week, last week in the wake of the Memorial Day holiday saw the debut of just five new ETFs and the completion of one closure. The new funds included ETFs issued by IndexIQ and Defiance ETFs, but there were also products from Newfound Research, Cambria, and FT Vest.
Newfound Research
The actively managed Return Stacked U.S. Stocks & Futures Yield ETF (RSSY ) from Newfound is the fourth addition to the issuer’s “Return Stacked” series and combines an equity strategy with a futures yield strategy. The equity strategy primarily invests in large-cap U.S. equities via individual stocks, ETF, and equity futures, while the futures yield portion of the portfolio will cover futures representing commodities, currencies, equities, fixed income securities, and interest rates, among other types of futures contracts, with the intention of exploiting the carry premium.
According to the prospectus, the fund looks to offer investors $2 worth of exposure for every $1 invested in the fund, or $1 of exposure to each of the two strategies. The fund has an expense ratio of 1.04% and lists on the Cboe BZX Exchange.
Cambria
Cambria rolled out the Cambria Chesapeake Pure Trend ETF (MFUT ) during the week. The new fund is actively managed. It uses a long-term trend-following strategy that seeks access to various asset classes such as equities, fixed income, currencies, and commodities via futures contracts and futures-related vehicles, according to MFUT’s prospectus.
Chesapeake Capital Corp. manages the fund’s futures strategy using what the prospectus terms “computer-driven models.” Meanwhile, Cambria manages the cash component of the portfolio via an in-house quantitative model with the intention of providing margin and collateral as needed for the futures portion of the portfolio.
MFUT has an expense ratio of 0.75% and lists on the Cboe BXZ Exchange.
FT Vest
FT Vest, a partnership between First Trust and Vest, launched the FT Vest Laddered Small Cap Moderate Buffer ETF (BUFS ), which invests in four other ETFs in the FT Vest family of buffer ETFs. All four of those ETFs offer buffered exposure to the price performance of the iShares Russell 2000 ETF (IWM ), tracking the reference asset’s performance up to an upside cap while protecting against the first 15% of downside performance before expenses. Each of the four funds in the portfolio has a different cap. Every three months, one of the funds in the series resets. BUFS creates a ladder by equal weighting the four funds and rebalancing them on a quarterly basis.
BUFS has an expense ratio of 1.10% and lists on the Cboe BZX Exchange.
Other Developments Beyond New ETFs
Closures saw a bit of a slowdown, with just one fund shutdown completing during the week. The BTD Capital Fund (DIP ) launched in late 2022 but largely failed to gather significant assets.
There were also several funds that underwent material changes.
The Franklin U.S. Low Volatility ETF (FLLV ) changed its name and ticker to the Franklin Income Equity Focus ETF (INCE ). Meanwhile, the MAX S&P 500 4X Leveraged ETN, which traded under the ticker XXXX, changed its ticker to (SPYU ). And the X-Square Municipal Income Tax Free ETF (ZTAX ) changed its name to the X-Square Municipal Income ETF.
Several ETFs changed their indexes during the week as well.
The Invesco S&P International Developed Momentum ETF (IDMO ) changed its index from the S&P Momentum Developed ex-U.S. & South Korea LargeMidCap Index to the S&P World Ex-U.S. Momentum Index.
Similarly, three ETFs affiliated with the EMQQ brand changed their indexes. The EMQQ The Emerging Markets Internet & Ecommerce ETF (EMQQ ) changed its index from the EMQQ The Emerging Markets Internet & Ecommerce Index to the EMQQ The Emerging Markets Internet Index.
The FMQQ The Next Frontier Internet & Ecommerce ETF (FMQQ ) changed its index from the FMQQ The Next Frontier Internet & Ecommerce Index to the FMQQ The Next Frontier Internet Index. And the India Internet & Ecommerce ETF (INQQ ) changed its index from the INQQ The India Internet & Ecommerce Index to the INQQ The India Internet Index.
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