By Michael Johnston:
By Daniela Pylypczak
After a rather stagnant month for the ETF industry in April, May saw even lower levels of activity on the product development front. A grand total of 8 new funds hit the markets this month; however, investors were introduced to a number of new and intruiging first-to-market product, including one that offers exposure to the niche segment of “covered” bonds. Additionally, issuer ArrowShares made its debut to the ETF industry with the launch of its new Dow Jones Global Yield ETF. Below, we outline all of the new launches from the month to keep you up to date on all of the latest offerings available:
New ETFs
New exchange-traded products that began trading in May include:
- Bond giant PIMCO launched yet another actively managed fund: the Global Advantage Inflation-Linked Bond Strategy Fund (ILB - News), which is comprised of inflation-protected bonds, securities that are designed to appreciate along with official inflation metrics.
- Newcomer to the ETF industry ArrowShares made its debut with the launch of their new Dow Jones Global Yield ETF (GYLD - News). The fund is linked to an index that includes 150 of the highest yielding securities across three primary asset classes: stocks, bonds, and alternative investments (including REITs andMLPs).
- Van Eck continued a recent trend of expansion in the high yield ETF space with their debut of the Market Vectors Emerging Markets High Yield Bond ETF (HYEM - News). The fund focuses tracks an index that consists of debt from issuers in a number of developing economies.
- ProShares introduced an intriguing first-to-market product this month with the debut of their new Covered Bond (COBO - News) product. Covered bonds are a unique type of debt instrument, generally issued by financial institutions and secured by a separate group of assets known as a “cover pool”.
- UBS rolled out two new leveraged equity funds, adding to their impressive linup of exchange-traded notes that appeal to yield-focused investors. The ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN (DVYL - News) and ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN (SDYL - News) both provide leveraged exposure to dividend paying companies.
- AdvisorShares introduced their new Global Echo ETF (GIVE - News), which focuses on the concept of sustainable investing. The fund is structured as a core allocation that seeks out sustainable investment-themed opportunities across various asset classes, including fixed income, equities, and alternatives.
- Relative newcomer Exchange Traded Concepts introduced its AlphaClone Alternative Alpha Exchange-Traded Fund (ALFA - News), which seeks to replicate a benchmark that is constructed based on publicly disclosed positions of hedge funds and institutional investors.
Coming Soon
May saw a slow down of activity on the filing front, with only a few proposed products hitting the SEC’s desk. The highlights include:
- Van Eck has filed with the SEC for two Saudi Arabia ETFs, making this a first-to-market proposal. One fund will offer equity exposure that is concentrated in financial services and basic materials sectors, while the other will seek to target small capitalization Saudi Arabian firms.
- First Trust has laid the groundwork for a new diversified futures fund, while iShares has made plans for a new Latin America bond fund.
