New products introduced over the last week include a short-term TIPS fund from Vanguard and a managed futures fund from Longboard.
Here are the latest developments of interest to advisors:
1) Vanguard Files to Offer TIPS Fund
Vanguard announced Tuesday that it has filed a registration statement with the SEC for the Vanguard Short-Term Inflation-Protected Securities Index Fund, which will seek to track the performance of the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. The benchmark index has an effective duration of 2.53 years and an average maturity of 2.59 years, as of June 30. Joshua Barrickman and Gemma Wright-Casparius, both principals and senior portfolio managers in the Vanguard Fixed Income Group, will co-manage the new fund.
Expected to be available in Q4, the fund will offer four share classes, each with its own expense ratio; three classes have a minimum initial investment. The ETF share class has an estimated expense ratio of 0.10%. Investor shares require a $3,000 minimum initial investment and have an estimated expense ratio of 0.20%. Admiral shares require a $10,000 minimum initial investment and have an estimated expense ratio of 0.10%. Institutional shares require a $5 million minimum initial investment and have an estimated expense ratio of 0.07%. To offset the transaction costs of purchasing TIPS, the fund will assess a 0.25% purchase fee on all shares (excluding ETF shares).
2) Longboard Launches Managed Futures Mutual Fund
Longboard Asset Management announced Thursday the launch of the Longboard Managed Futures Strategy Fund (WAVIX), an investment product that offers the firm’s managed futures strategy in a mutual fund package, instead of through the fund of funds structure or private placement.
Managed futures provide the flexibility to take long and short positions across four major asset classes: stocks, bonds, currencies and commodities. The new fund provides advisors the opportunity for direct-to-manager access within a mutual fund.
Read the July 23 Portfolio Products Roundup at AdvisorOne.com