Following the presidential election at home, U.S. markets have seen nothing but downside. Investors have quite clearly expressed their fears over the looming “fiscal cliff,” as made apparent by the rampant profit-taking on Wall Street all week. Amid the broad-based “risk off” wave, RBS debuted five new commodity ETNs inspired by legendary investor Jim Rogers, while two newcomers filled up the product development pipeline [Download 101 ETF Lessons Every Financial Advisor Should Learn].
Radiance Asset Management, backed by U.S. Bancorp, is planning make a splash onto the ETF stage with both active and passive product offerings:
- Domestic Equity ETF: According to the SEC filing, this will be the firm’s first actively-manged ETF designed to generate long-term capital appreciation. The fund’s security selection process will be based on both qualitative and quantitative metrics; the underlying portfolio may include common stocks, ETFs, preferred stocks, direct equity interests in trusts, partnerships, joint ventures and even convertible debt instruments [see Profiling 5 Total Portfolio ETFs].
- In a seperate SEC Filing, Radiance requested permission to operate passive, index-based ETFs geared towards institutional and retail investors. The filing did not, however, specify any specific ETF proposals.
Headed by veterans from FactorShares, newcomer ETF Issuer Solutions filed with the SEC for exemptive relief in an effort to make its debut in the industry with an actively-managed fund:
- AltShares US Long/Short Fund: According to the SEC filing, this active fund may invest in other exchange-traded products, U.S. and non-U.S. fixed income or equity securities, depository receipts, currencies, closed-end funds, cash and cash equivalents. The filing also stated that this ETF would seek to preserve and grow capital, independent of market direction.
Amid the flurry of filings from industry newcomers, First Trust also laid down the groundwork for an actively-managed product:
- First Trust Global Tactical Commodity Strategy Fund: According to the SEC filing, this ETF will seek to provide total return by offering futures-based commodity exposure while maintaining a relatively stable risk profile. The fund will employ a dynamic weighting process that results in a disciplined, systematic investment approach; potential futures contracts for investment include live cattle, cocoa, wheat, sugar, coffee, soybeans, lean hogs, crude oil, Brent crude, heating oil, gas oil, natural gas, gasoline, gold, silver, platinum, copper, aluminium, lead, nickel, tin and zinc [see our Futures Free Commodity ETFdb Portfolio].
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Disclosure: No positions at time of writing.
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