May 25, 2012

Week’s Top Portfolio Products: AdvisorShares Launches Sustainable ETF

ProShares offers covered bond ETF; UBS has new ETNs; new subaccount from Donoghue

Portfolio ProductsNew products introduced over the last week include a new sustainable ETF from AdvisorShares and Philippe Cousteau and a covered bond ETF from ProShares.

In addition, UBS announced two new ETNs and W. E. Donoghue launched a new subaccount for its Power Income variable annuity.

Here are the latest developments of interest to advisors:

1) AdvisorShares, Philippe Cousteau Launch Actively Managed Sustainable ETF

AdvisorShares’ 14th actively managed exchange-traded fund—and the first of its ETFs to focus on sustainable investment, the Global Echo ETF (GIVE)—opened for trading on Thursday at the New York Stock Exchange.

Launched in partnership with environmental advocate and social entrepreneur Philippe Cousteau Jr., the AdvisorShares Global Echo ETF is a multi-manager fund that seeks to “do well by doing good” by pairing a public investment company product with a private charitable foundation.

Read the entire story, AdvisorShares, Philippe Cousteau Launch Actively Managed Sustainable ETF, at AdvisorOne.

2) ProShares Launches Covered Bond ETF

ProShares announced on Wednesday the launch of ProShares USD Covered Bond (COBO), the only corporate bond fund—mutual fund or ETF—in the U.S. with substantially all of its assets rated AAA.

COBO invests in covered bonds, a type of collateralized corporate debt typically issued by non-U.S. financial institutions. It seeks to match the performance of the BNP Paribas Diversified USD Covered Bond Index, before fees and expenses. The index tracks the performance of a portfolio of AAA-rated covered bonds, which are denominated in U.S. dollars. Each bond must be AAA-rated by at least one independent rating agency.

3) UBS Expands Income-Yielding Products With 2 New ETRACS ETNs

UBS Investment Bank announced Wednesday that two new ETRACS Exchange Traded Notes (ETNs) are now available. ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN (DVYL) and ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN (SDYL) are linked to the Dow Jones U.S. Select Dividend Index and the S&P High Yield Dividend Aristocrats Index.

The ETNs are designed to provide two times leveraged exposure to the indexes, less fees; monthly leverage resetting; significant income potential in the form of variable monthly coupons linked to two times the dividends, if any, on the index constituents and the convenience of a single exchange-traded security.

4) W.E. Donoghue Launches Power Income Variable Annuity Subaccount

W.E. Donoghue & Co. announced Tuesday its Power Income VIT fund offering on Jefferson National’s Monument Advisor, the industry’s first flat-fee variable annuity.

The fund’s objective is a total return from income and capital gains with capital preservation secondary. The fund’s investment advisor seeks to achieve its objective by utilizing a de-risking strategy that attempts to offer a consistent return stream for investors.

Read the May 21 Portfolio Products Roundup at AdvisorOne.

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