Odds & Ends: T. Rowe Price Debuts 9th ETF
It was a busy week from both an economic and a market perspective, and the exchange-traded fund industry fell in with that trend. Thirteen new ETFs launched during the week.
T. Rowe Price launched its ninth ETF on Wednesday. The T. Rowe Price U.S. High Yield ETF (THYF) is a fully transparent actively managed junk bond ETF. The fund mainly has a U.S. focus and selects the portfolio via credit research and analysis, considering a bond’s potential for appreciation and the creditworthiness of its issuer.
THYF lists on the NYSE Arca and charges an expense ratio of 0.56%.
That same day, First Trust added the First Trust Growth Strength ETF (FTGS), which tracks a smart beta index that incorporates data regarding liquidity, return on equity, long-term debt, revenue and cash flow growth to assign rankings to 500 U.S. securities. The methodology selects the top 50 companies from those rankings, according to the prospectus.
FTGS comes with an expense ratio of 0.60% and lists on the Nasdaq stock exchange.
Tuesday saw the rollout of the Angel Oak UltraShort Income ETF (UYLD), an actively managed that aims for a dollar-weighted average maturity of less than two years and a dollar-weighted average duration of less than one year, its prospectus says.
The fund can invest in a wide range of fixed income vehicles and can allocate up to 25% of its portfolio to collateralized loan obligations and up to 25% to mortgage-backed securities, according to the document.
UYLD has an expense ratio of 0.29% and lists on the NYSE Arca.
And on Monday, the Soundwatch Hedged Equity ETF (SHDG) debuted on Cboe Global Markets. The actively managed fund invests in a variety of investment vehicles including equities, futures and ETFs and can implement a variety of options strategies in order to hedge equity performance. The fund managers use fundamental, technical and cyclical analysis to select the equities for its portfolio.
SHDG has an expense ratio of 0.59%.
Closures
While four previously announced closures completed during the week, Inspire announced it would be closing the Inspire Faithward Large Cap Momentum ETF (FEVR), which launched in December 2020 and currently has $21 million in assets. Its last day of trading is Nov. 18.
Other Changes
Several ETFs underwent material changes or announced ones that were pending. The $235.6 million iShares U.S. Dividend and Buyback ETF (DIVB) changed its name on Tuesday to the iShares Core Dividend ETF and reduced its expense ratio from 0.25% to 0.05%.
As of Oct. 21, the Home Appreciation U.S. REIT ETF (HAUS) changed its name to the Residential REIT Income ETF.
On Monday, the WisdomTree CBOE S&P 500 PutWrite Strategy Fund (PUTW) changed its name to the WisdomTree PutWrite Strategy Fund and switched its index from the CBOE S&P 500 PutWrite Index to the Volos US Large Cap Target 2.5% PutWrite Index.
Three MicroSectors ETNs are also set to undergo 1-for-10 reverse splits as of Oct. 31. The affected funds include the following:
Contact Heather Bell at heather.bell@etf.com
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