Top Portfolio Products: Schwab Lowers Expense Ratios, Donoghue Adds Dividend-Yield Offering

Accretive Wealth Management offers Sharia-compliant portfolios; RiverPark set to close fund to new investors

New products introduced over the last week include the availability of W.E. Donoghue’s Power Dividend Index Portfolio through Envestnet’s SMA platform and Sharia-compliant portfolios from Accretive Wealth Management.

In addition, Wisdom Tree announced the listing of 12 additional ETFs on the Mexican stock exchange, and RiverPark Funds is closing it’s a short-term high-yield fund to new investors.

Here are the latest developments of interest to advisors:

1) Charles Schwab Lowers Expenses on Two Index Funds

Schwab (SCHW) says it reduced the operating expense ratios (or OERs) for two of its fundamental index mutual funds on Thursday–-the Schwab Fundamental International Small Company Index Fund (SFILX) and the Schwab Fundamental Emerging Markets Large Company Index Fund (SFILX), which now have OERs of 0.49% and 0.50%, respectively.

Previously, the global small-company fund had an expense ratio of 0.55%, while the emerging-markets large-company fund’s expense ratio was 0.61%.

2) W. E. Donoghue Portfolio Available through Envestnet

W. E. Donoghue & Co., Inc. recently announced that its Power Dividend Index Portfolio is now available through Envestnet's SMA platform.

The portfolio tracks W.E. Donoghue’s Power Dividend Index, which is calculated by Standard and Poor’s Custom Indexes. It isolates the top five dividend yielding stocks from each of the 10 GIC sectors in the SPX 500, equally weights those 50 stocks, rebalances quarterly and provides Donoghue's tactical overlay for defense.

3) Accretive Wealth Management Announces Sharia-Compliant Portfolios

Accretive Wealth Management, LLC, announced a strategic partnership with Aperio Group that enables it to offer separately managed Sharia-compliant portfolios.

Patrick Geddes, Aperio’s chief investment officer, said, “The separately managed account (SMA) structure also allows taxable investors the opportunity to harvest tax losses that can be used to offset gains elsewhere in the portfolio, improving their overall after-tax return.”

Companies included in the Islamic Values portfolio must first pass exclusionary screens to ensure they do not derive 5% or more of their cumulative revenue from the following products, services and activities: alcohol, tobacco, pork-related products, financial services, defense/weapons, gambling/casino, music, hotels, cinema, and adult entertainment.

The next screen eliminates companies that derive significant income from interest or that have excessive leverage. For clients who are very risk-averse, additional quality and volatility screens can be added.

4) RiverPark Closes High-Yield Fund to New Investors

RiverPark Funds said Friday that it intends to close the RiverPark Short Term High Yield Fund (RPHIX, RPHYX) to new investors at the close of business on June 21.

The fund has grown to more than $700 million in assets less than three years after its launch.

According to RiverPark CEO Morty Schaja, the company is taking this step in order “to protect the integrity of the Fund’s investment strategy …”

5) WisdomTree Adds 12 ETFs to Mexican Stock Exchange

WisdomTree Investments, Inc. announced that it has added 12 ETFs to those it has already listed on the Mexican stock exchange, Bolsa Mexicana de Valores (BMV), S.A.B. de C.V. All 12 equity ETFs are listed in the special international section of the BMV, the Sistema Internacional de Cotizaciones (SIC). SIC makes it possible for certain institutional investors to trade foreign securities in Mexico. Securities listed on the SIC are not publicly offered in Mexico.

The newly listed ETFs are: WisdomTree Small Cap Dividend Fund (DES); WisdomTree Europe Small Cap Dividend Fund (DFE); WisdomTree Equity Income Fund (DHS); WisdomTree Mid Cap Dividend Fund (DON); WisdomTree Total Dividend Fund (DTD); WisdomTree Dividend ex-Financials Fund (DTN); WisdomTree Mid Cap Earnings Fund (EZM); WisdomTree Asia Pacific ex-Japan Fund (AXJL); WisdomTree International Small Cap Dividend Fund (DLS); WisdomTree International Large Cap Dividend Fund (DOL); WisdomTree International Dividend ex-Financials Fund (DOO); and WisdomTree DEFA Fund (DWM).

Read the June 10 Portfolio Products Roundup at AdvisorOne.

Also, for direct insights on the role of ETFs in client portfolios from multiple experts—including Rick Ferri, Ron Delegge, Skip Schweiss and more—we invite you to register for AdvisorOne’s premiere advisorcentric Virtual ETF Summit (and get multiple hours of CFP Board CE).

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