April ETF Roundup: Launches And Filings

By Daniela Pylypczak

After capping off one of the strongest first quarters in 14 years, major benchmarks have stalled their rally, as conflicting data from all around the world has put markets in a rut. As we head into the summer months, investors will hope overarching issues, like European debt, will cool off but all indications point to Spain being the next Greece, so don’t expect that to happen anytime soon. Though the month was relatively busy for the financial world, the ETF universe moved along at a steady but moderate pace, with the introduction of 19 new products. 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 April include:

• Van Eck launched its new Market Vectors International High Yield Bond ETF (IHY), which offers investors exposure to below investment-grade debt issued by corporations located outside the U.S.

• iShares rolled out three new corporate bond funds: the Emerging Markets High Yield Bond Fund (EMHY), Global ex USD High Yield Corporate Bond Fund (HYXU), and Global HighYield Corporate Bond Fund (GHYG). Additionally, the powerhouse issuer introduced their new Morning Star Multi-Asset Income Index Fund (IYLD), which is structured as an ETF-of-ETFs, meaning that the underlying holdings will be other exchange-traded products

• Van Eck continued a recent trend of expansion in the junk bond ETF space with their debut of the Market Vectors Fallen Angel High Yield Bond ETF (ANGL). The fund focuses on debt that was originally rated as investment grade quality at the time of issuance.

• US Commodity Funds added to their impressive line up of commodity products with the introduction of their new Agriculture Index Fund (USAG). The fund seeks to replicate an index that shifts exposures to different agricultural commodities based on current market conditions.

• iShares debuted their new Emerging Market Corporate Bond Fund (CEMB), which invests in bonds issued by corporations and quasi-sovereign corporations from a range of emerging markets.

• RBS and Global X introduced two new intruiging funds to the markets this month: the RBS China Trendpilot ETN (TCHI) and the Global X MLP ETF (MLPA).

• Guggenheim expanded its lineup by adding three new high yield ETFs to their BulletShares family. The new funds are: BulletShares 2016 High Yield Corporate Bond ETF (BSJG), BulletShares 2017 High Yield Corporate Bond ETF (BSJH), and BulletShares 2018 High Yield Corporate Bond ETF (BSJI).

• Van Eck launched its new Market Vectors Wide Mote Research ETF (MOAT), which offers exposure to equity markets based on “wide moats”, a concept popularized by Wall Street legend Warren Buffett.

• iShares proved to be a heavy hitter this month, adding to their impressive lineup with the launch of two targeted corporate bond ETFs: the Baa-Ba Rated Corporate Bond Fund (QLTB) and B-Ca Rated Corporate Bond Fund (QLTC), which seek to replicate indexes comprised of bonds with specific credit ratings.

• State Street joined the active ETF ring with its launch of three multi-asset class products, including the SPDR Multi-Asset Real Return ETF (RLY), the SPDR Income Allocation ETF (INKM), and the SPDR Global Allocation ETF (GAL).

Coming Soon

April saw a slow down of activity on the filing front, with only a few proposed products hitting the SEC’s desk. The highlights include:

• ProShares plans to introduce two new ETFs focusing on alternative investment strategies, including merger-arbitrage and private equity.

• First Trust has filed plans with the SEC to bring to market a new hedge fund ETF, while newcomer Pyxis is planning to debut its first actively-managed offering.

• AdvisorShares laid the groundwork for a new fund from Pring Turner Capital Group, which will utilize business cycle research to proactively change its underlying assets. Additionally, Javelin Investment Management plans to re-enter the ETF market with the launch of a new Deep Value Index Fund.

Disclosure: No positions at time of writing.

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