February 24, 2012

Top Portfolio Products: iShares Launches 7 ETFs

Seafarer introduces new fund; Invesco adds two high-beta ETFs

New products introduced over the last week include seven new ETFs from iShares and one new fund from Seafarer Capital Partners.

In addition, Invesco introduced two new high-beta ETFs.

Here are the latest developments of interest to advisors:

1) iShares Launches Seven New Fixed Income ETFs to Help Meet Investor Demand for Targeted Exposures

BlackRock Inc. announced Feb. 16 that its iShares ETFs business has launched seven new fixed-income funds, including four that offer access to market segments other than broad, aggregate bond market exposure, and three that represent the first sector fixed-income ETFs. They are:

  • iShares Aaa–A Rated Corporate Bond Fund (QLTA), which provides single-trade access to corporate debt issuers, broadly diversified across sectors and maturities, and is designed to track the Barclays Capital U.S. Corporate Aaa–A Capped Index
  • iShares Barclays U.S. Treasury Bond Fund (GOVT) , which offers exposure to a broad range of U.S. Treasuries maturities in one trade and is designed to track the Barclays Capital U.S. Treasury Bond Index
  • iShares Barclays CMBS Bond Fund (CMBS), which provides exposure to investment grade commercial mortgage-backed securities
  • iShares Barclays GNMA Bond Fund (GNMA), which offers investment in a diversified portfolio of fixed-rate, mortgage-backed securities issued by the Government National Mortgage Association
  • iShares Financials Sector Bond Fund (MONY), which offers targeted exposure to investment-grade U.S. corporate financial sector bonds and is designed to track the Barclays Capital U.S. Financial Institutions Capped Bond Index
  • iShares Industrials Sector Bond Fund (ENGN), which offers access to the industrial sector, and is designed to track the Barclays Capital U.S. Industrial Bond Index
  • iShares Utilities Sector Bond Fund (AMPS), which offers access to the U.S. utility corporate bond sector and is designed to track the Barclays Capital U.S. Utility Bond Index.

2) Seafarer Overseas Growth and Income Fund Launched

The Seafarer Overseas Growth and Income Fund (investor class SFGIX/institutional class SIGIX), a no-load fund, has been launched by Seafarer Capital Partners. Its primary investment objective is to provide investors with long-term capital appreciation along with some current income by investing up to 80% in the income-producing securities of companies based in emerging markets. It also can invest in securities of companies based in developed countries that have significant economic and financial ties to the developing world.

The fund, managed by Andrew Foster, who was the lead manager of Matthews Asia Growth and Income Fund from 2008-2011, is distributed by ALPS Distributors Inc. Its strategy allows for investment in equities, convertible debt, and fixed income.

3) Invesco PowerShares High Beta ETFs Begin Trading

Invesco PowerShares Capital Management LLC announced Wednesday two new ETFs set to begin trading Friday that are designed to offer access to high-beta strategies covering emerging and international developed markets. They are PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) and PowerShares S&P International Developed High Beta Portfolio (IDHB).

EEHB is based on the S&P BMI Emerging Markets High Beta Index, which consists of the 200 stocks in the S&P Emerging BMI Plus Large/Mid Cap Index that are the most sensitive to changes in market returns over the past 12 months. The fund will invest at least 90% of its total assets in the securities of companies that comprise the index.

IDHB is based on the S&P BMI International Developed High Beta Index, which consists of the 200 stocks in the S&P Developed ex-U.S. and South Korea Large/Mid Cap BMI Index that are the most sensitive to changes in market returns over the past 12 months. The fund will invest at least 90% of its total assets in the securities of companies that comprise the index.

Read the Feb. 16 Portfolio Products Roundup at AdvisorOne.com

Reprints Discuss this story
This is where the comments go.