First Bridge ETF landscape and risk report: January 2014 (Part 6 of 7)
Active and strategy exposure
A total of 159 new ETFs were launched in 2013, with income/high yield, short-duration bond exposure, and currency-hedged equities being the three most popular categories. We have already seen a quick start to 2014, with 25 new launches in January itself. The table below lists the January 2014 ETF launches.
We can see:
- An increase in the number of active ETFs, with State Street being the most notable sponsor, since it was the pioneer in traditional index linked ETFs in the U.S.
- More launches of ETFs that offer exposure to targeted strategies such as currency-hedged and “high-quality” stocks.
- Products in the 50–85 bps expense ratio range that offer strategic exposure (rather than low-cost “traditional beta” products in the 10–25 bps range).
Browse this series on Market Realist:
- Part 1 - Must-know: ETF assets fell to $1.64 trillion in January
- Part 2 - Investors are anticipating increased volatility in equity markets
- Part 3 - An overview of some of the ETFs designed to manage volatility
- Investment & Company Information