Top Portfolio Products: ProShares Rolls Out 2 Credit-Focused ETFs

Lincoln Financial adds survivorship life offerings, as Beaumont Capital and Envestnet share new portfolio strategies

New ETFs zoom in on credit spreads. New ETFs zoom in on credit spreads.

New products and changes introduced over the last week include two ETFs from ProShares within the high-yield bond market, as well as several portfolios with sector-rotation strategies from Beaumont Capital and Envestnet.

In addition, Lincoln Financial Group says it is launching Lincoln WealthPreserve Survivorship Indexed Universal Life.

1) ProShares Launches Two ETFs

ProShares has launched two funds that provide pure exposure to the credit component of the high-yield bond market uncoupled from the interest rate component. ProShares CDS North American HY Credit ETF (TYTE) and ProShares CDS Short North American HY Credit ETF (WYDE) are listed on the BATS exchange.

TYTE and WYDE get pure exposure to changes in credit spreads by investing in index-based credit default swaps (CDS), instruments that reflect the market’s view of a bond issuer’s credit quality. The funds’ exposure is not leveraged. TYTE can provide investors exposure to the high-yield bond market without the risk associated with rising interest rates. WYDE can be used to hedge against the credit risk in high yield bonds.

2) Beaumont Capital and Envestnet Offer Sector-Rotation Portfolio Strategies

Beaumont Capital Management (BCM) has launched nine portfolio strategies on the Envestnet platform. They are the BCM Advantage series and Relative Strength series of sector rotation strategies and the BCM Small Cap Sector Rotation strategy.

These strategies offer alternative approaches for utilizing BCM’s defensively oriented sector rotation strategies that are designed to participate in market upside while avoiding the largest losses of bear markets.

The BCM Advantage and Relative Strength sector rotation series offer advisors access to BCM’s sector rotation through diversified portfolio strategies, including U.S. sector rotation, diversified equity, growth, and moderate growth portfolios. All strategies provide exposure to U.S. large-cap equity, with some having the ability to add global macro and international equities, as well as high-quality fixed income, according to the client’s desired risk profile.

3) Lincoln Financial Adds Survivorship Indexed Universal Life Offering

Lincoln Financial Group has announced the addition of the Lincoln WealthPreserve Survivorship Indexed Universal Life (SIUL) product.

SIUL provides an income tax-free death benefit at the end of the last surviving insured’s life, and is designed to enable policyholders to transfer a greater inheritance to beneficiaries, or provide proceeds to pay estate taxes, continue a business, or meet other financial needs.

Read the August 9 Portfolio Products Roundup at ThinkAdvisor.

 

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