New products and changes introduced over the last week include a fossil fuel-free ETF from State Street Global Advisors and three bear ETFs from Direxion. Also, ERI Scientific Beta added a family of indexes and Pzena Investment Management entered the retail market.
Here are the latest developments of interest to advisors:
1) State Street Adds Fossil Fuel-Free ETF
State Street Global Advisors launched the SPDR S&P 500 Fossil Fuel Free ETF (SPYX), which was developed with the support of the Natural Resources Defense Council (NRDC).
SPYX seeks to track the performance of the S&P 500 Fossil Fuel Free Index, which is essentially the S&P 500 minus oil and gas producers, refiners and service companies. In constructing the index, the initial universe of stocks is screened to exclude companies with any ownership in fossil fuel reserves, including for third party and in-house power generation, as determined by publicly available information. The index included 473 securities as of December 2.
2) Direxion Introduces Three Bear ETFs
Direxion added three bear ETFs for three different industries: biotech, healthcare and natural gas.
The Direxion Daily S&P Biotech Bear 1X Shares (LABS) seeks the inverse of the performance of the S&P Biotechnology Select Industry Index. The Direxion Daily Healthcare Bear 3X Shares (SICK) seeks the same for the Health Care Select Sector Index, times three. And the Direxion Daily Natural Gas Related Bear 3X Shares (GASX) also seeks triple the inverse of the performance of the ISE-Revere Natural Gas Index.
3) ERI Scientific Beta Adds Family of Indexes
ERI Scientific Beta released a family of multi smart-factor indexes, the Quality Multi Beta Indexes.
The multi-factor indexes are an equal weighted combination of the two factors attributed to quality—low investment and high profitability—and are available in both regular and highly liquid versions, and with or without sector and geographical neutrality.
4) Pzena Investment Management Enters Retail Market
Pzena Investment Management entered the retail market with three open-end mutual funds, and it expanded its leadership team accordingly. Scott Napier serves as head of intermediary distribution and Jonna Dondero is director of business development for intermediary distribution.
Pzena now offers individual investors access to investment strategies that were previously only available to institutional clients. The new retail funds include mid-cap value, long/short equity, and emerging markets value.