Last Week in ETFs: 8 New Defined Outcome ETFs Debut

More than half of the ETFs launching last Monday were defined outcome strategies. AllianzIM debuted funds on the NYSE and the Cboe BZX Exchange. The Cboe-listed ETF is the AllianzIM U.S. Equity Buffer15 Uncapped June ETF (JNEU), the third fund in its series of “uncapped” ETFs, that do not have any limit on their upside. It has an expense ratio of 0.74%.

AllianzIM’s uncapped ETFs use flexible exchange (FLEX) options tied to the price performance of the SPDR S&P 500 ETF Trust (SPY A-) to execute their objectives. They protect against up to 15% downside performance by the reference asset. However, before they experience any upside, the reference asset must rise above a specific buffer. In the case of JNEU, that buffer before expenses is 2.80%. AllianzIM also offers funds with similar strategies that reset in April and May.

Innovator also rolled out a couple funds on the Cboe BZX Exchange. The Innovator U.S. Small Cap Power Buffer ETF – June (KJUN) and the Innovator Growth-100 Power Buffer ETF – June (NJUN) invest in FLEX options tied to the iShares Russell 2000 ETF (IWM A-) and the Invesco QQQ Trust (QQQ B), respectively. These funds protect against the first 20% of downside performance by the reference asset.

KJUN has a starting cap of 18.02%, while NJUN’s starting cap is 16.09%. The two ETFs have expense ratios of 0.79%.

PGIM rolled out the final two ETFs needed to complete its buffer ETF family. The PGIM US Large-Cap Buffer 12 ETF – June (JUNP) and the PGIM US Large-Cap Buffer 20 ETF – June (PBJN) both use FLEX options on SPY to provide their targeted exposure. Respectively, the funds cap their upside performance at 15.05% and 12.31% before expenses. PGIM’s buffer ETF lineup now includes funds resetting in every month of the year. The funds have an expense ratio of 0.50% and list on the Cboe BZX Exchange.

Rareview added a fifth fund on Monday with the launch of the Rareview Total Return Bond ETF (RTRE). The actively managed fund has wide latitude to invest across different bond sectors, maturities and credit qualities. IT can also invest outside of the U.S. RTRE’s managers select individual securities based on in-depth analysis. The fund has an expense ratio of 0.69% and lists on the Cboe BZX Exchange.

Finally, BlackRock launched an actively managed ETF that focuses on the asset class encompassing the Magnificent Seven stocks. The BlackRock Large Cap Growth ETF (BGRO) invests in companies that fall within the parameters of the Russell 1000 Growth Index. The fund has an expense ratio of 0.55% and lists on the Nasdaq Stock Market.

There was only one ETF closure during the week, with the Teucrium AiLA Long-Short Base Metals Strategy ETF (OAIB C+) ceasing to trade as of Wednesday.

A number of ETFs either underwent material changes during the week as follows:

• The VanEck China Bond ETF (CBON B+) changed its index from the ChinaBond China High Quality Bond Index to the FTSE Chinese Broad Bond 0-10 Years Diversified Select Index.
• The Range Cancer Therapeutics ETF (CNCR B-) is now known as the Range Oncology Therapeutics Index.
• The Invesco S&P International Developed Momentum ETF (IDMO A) switched 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.
• The iShares Factors US Growth Style ETF (STLG B-) is now known as the iShares MSCI USA Quality GARP ETF (GARP A-) and changed its index from the Russell US Large Cap Factors Growth Style Index to the MSCI USA Quality GARP Select Index.
• The Columbia International ESG Equity Income ETF (ESGN B-) is now known as the Columbia International Equity Income ETF (INEQ B+) and has dropped its index to become actively managed.
• The Columbia U.S. ESG Equity Income ETF (ESGS A-) is now known as the Columbia U.S. Equity Income ETF (EQIN A) and, like INEQ, is now actively managed.

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