Victory Capital launched a new exchange-traded fund that seeks to provide a risk-aware, high income approach to investing in emerging markets
The VictoryShares Emerging Market High Div Volatility Wtd ETF (CEY), which began trading on the Nasdaq Stock Market, offers exposure to high dividend-yielding emerging market stocks and seeks to provide investment results that track the performance of the CEMP Emerging Market High Dividend 100 Volatility Weighted Index, before fees and expenses.
The CEMP index methodology combines fundamental criteria and volatility weighting in an effort to outperform traditional cap-weighted indexing strategies. Rather than weighting stocks by size, which results in concentration in the largest companies in the index, the CEMP methodology weights stocks based on volatility (standard deviation over the past 180 trading days). The goal is to offer investors a more balanced approach to achieving broad market exposure. To be included in the index, a company must have been profitable over the past four quarters.
“Investors seeking income now have the option to further diversify their portfolios with dividend-yielding emerging market stocks,” said Mannik Dhillon, President, VictoryShares and Solutions. “With many emerging market companies currently out-yielding their U.S. counterparts, we believe it’s an appropriate time to consider a risk conscious, tax efficient approach to investing in high income-producing emerging market equities.”
CEY has a next expense ratio of 0.5%.
Columbia Threadneedle Investments Launches Columbia Adaptive Retirement Series
Columbia Threadneedle Investments launched an innovative new target date solution for the retirement marketplace, the Columbia Adaptive Retirement Series.
Based on the firm’s proprietary Adaptive Risk Allocation methodology, the solution aims to provide investors with capital appreciation and current income consistent with the target retirement year while seeking to smooth the ride through volatile markets.
The Adaptive Retirement Series currently consists of five target date funds, spanning the 2020, 2030, 2040, 2050 and 2060 vintages; five-year vintage funds may be added at a later date. The funds seek exposure to a global portfolio of stocks, bonds and inflation-hedging assets (commodities, TIPS and REITs).
Differing from target date strategies that typically offer a glidepath that automatically reallocates assets to a more conservative profile as the target retirement date approaches, the Columbia Threadneedle solution maintains a diversified risk allocation throughout the lifecycle, reducing aggressiveness along the glidepath without sacrificing asset class diversification.
Deutsche Asset Management Launches Benchmark International Equity ETF Suite
Deutsche Asset Management announced the launch of Xtrackers Germany Equity ETF (Bats: GRMY) and Xtrackers Eurozone Equity ETF (Bats: EURZ), effective October 27. Each of GRMY and EURZ will have an expense ratio of 0.15% and will provide benchmark exposure to the stock markets of Germany and the Eurozone respectively.
GRMY seeks to track the Nasdaq Germany Large Mid Cap Index, which is designed to track the performance of the German equity market. EURZ seeks to track the Nasdaq Eurozone Large Mid Cap Index, which is designed to track the performance of equity securities from issuers based in the countries in the Economic and Monetary Union of the European Union.
Northern Trust Makes Fee Reductions to Select FlexShares ETFs
Northern Trust announced a reduction in the maximum annual management fee on the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF).
The fee reductions are effective Nov. 1. At that time, TDTT and TDTF’s fees will be reduced from 20 basis points to 18 basis points
FlexShares’ lineup is designed to provide targeted investment outcomes and risk-adjusted returns with funds that address the four fundamental investor objectives of growing assets, managing risks, generating income and providing liquidity.
IndexIQ Reduces Fees For Iq Hedge Multi-Strategy Tracker ETF
IndexIQ is waiving a portion of the management fee for its $1 billion IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI) to reduce the fee by 29% to 53 basis points, a 22-basis point reduction.
Including acquired fund fees, the total expense ratio for QAI after the fee waiver will now be 76 basis points. This change is effective Nov. 1.
QAI, which launched in 2009, was one of the first hedge fund replication ETFs. QAI has a unique approach of delivering investors hedge fund exposure with the liquidity, transparency, tax efficiency and low costs inherent in the ETF structure.
Security Benefit Debuts Two New Indexes in Total Value Annuity
Security Benefit Life Insurance Company added four new index accounts to the Total Value Annuity: one- and two-year accounts based on the S&P 500 Low Volatility Daily Risk Control 5% Index, and one- and two-year accounts based on the S&P Multi-Asset Risk Control 5% Index.
They are now available to new purchasers, and they are available to existing contract owners on contract anniversaries with an index term date beginning on or after Oct. 23.
The S&P 500 Low Vol RC 5% Index represents a portfolio that combines the S&P 500 Low Volatility Index with an interest-accruing cash component.
The S&P MARC 5% Index is designed to track the performance of a risk-weighted portfolio consisting of three asset classes — equities, commodities and fixed income — represented by three component indices: the S&P 500 Excess Return Index, the S&P GSCI Gold Excess Return Index and the S&P 10-Year U.S. Treasury Note Futures Excess Return Index.
Incapital and Alaia Capital Enter Into Distribution Partnership
Incapital has entered into a distribution partnership with Alaia Capital, an independent asset management firm focused on innovative investment solutions. Incapital will offer Alaia Capital’s market-linked Unit Investment Trusts (UITs), marketed under the m+ fundssm brand, to financial advisors through its vast network of broker/dealers and banks.
Like other market-linked products, m+ fundssm are designed to provide outcome-driven exposure to ETFs over a fixed period of time. As UITs, m+ fundssm provide transparency of holdings and fees, daily NAV pricing and transparent liquidity. m+ fundssm also eliminate bank or corporate credit risk and can be easily deployed in both fee-based and brokerage accounts.