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Top Portfolio Products: Motley Fool Fund Gets Five Stars

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Portfolio Products logoNew products introduced over the last week include a new fund from Motley Fool; a new Market Vectors ETF that excludes financials; and a new ETF from Global X.

In addition, OppenheimerFunds announced that it will acquire SteelPath; Capital IQ chose 3 ETFs for Japan exposure; and Schwab marked the 20-year anniversary of its OneSource mutual fund platform with a report on its history.

Here are the latest developments of interest to advisors:

1) First Motley Fool Fund Debuts with Five-Star Overall Morningstar Rating

The Motley Fool Independence Fund (FOOLX)—the first fund created by Motley Fool Asset Management—has debuted with a five-star overall Morningstar rating. Based on risk-adjusted performance, FOOLX, a world stock fund, has delivered 15.22% annualized returns since inception, beating the MSCI’s return of 11.61% as of June 30.

FOOLX starts with a long-term value-investing approach and includes a fulcrum fee.

2) Market Vectors Launches ETF Excluding Financials (PFXF)

Market Vectors ETF Trust announced Tuesday that it has launched Market Vectors Preferred Securities ex Financials ETF (PFXF), designed to offer investors access to the income potential of preferred securities without the volatility of financials. Among preferred securities-focused ETFs listed in the U.S., PFXF has the lowest published net expense ratio at the time of launch. PFXF has a gross expense ratio of 0.52% and a net expense ratio of 0.40%, which is capped at least until Sept. 1, 2013. Cap excludes certain expenses, such as interest.

PFXF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Wells Fargo Hybrid and Preferred Securities ex Financials Index (WHPSL), a rules-based index intended to track the overall performance of publicly traded nonfinancial preferred securities, including securities that, in Wells Fargo Securities’ judgment, are functionally equivalent to preferred securities such as convertible securities, depository preferred securities and perpetual subordinated debt.

3) Global X Funds Launches SuperIncome Preferred ETF

Global X Funds launched the Global X SuperIncome Preferred ETF (SPFF) on Tuesday. It is designed to track 50 of the highest-yielding preferred securities in North America.

SPFF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Enhanced Yield North American Preferred Stock Index. The index is made up of U.S.- and Canada-traded preferred stocks that meet criteria relating to size, liquidity and exchange listings, among others.

4) OppenheimerFunds to Acquire MLP Investment Manager SteelPath

OppenheimerFunds announced Tuesday that it has signed an agreement to purchase SteelPath Capital Management and SteelPath Fund Advisors, an energy infrastructure investments company focused on the master limited partnership (MLP) sector. SteelPath offers a family of MLP-focused mutual funds as well as privately available products.

The transaction is expected to close during Q4, subject to certain conditions and approvals. Financial terms of the transaction were not disclosed. 5) S&P Capital IQ Picks Japan Exposure via 3 ETFs

Todd Rosenbluth, S&P Capital IQ ETF analyst, singled out in a July 16 report on MarketScope Advisor three ETFs that provide Japan exposure—since, according to his report, despite the tsunami and nuclear disaster in 2011, Japanese equities are down only slightly in 2012 and outpacing many international markets.

iShares MSCI Japan Index Fund (EWJ) provides dedicated exposure to Japan and a 0.51% gross expense ratio. Vanguard Pacific Stock Index Fund (VPL) offers 60% exposure to Japan, with significant exposure to Australia, and smaller levels of exposure to Hong Kong and Singapore; it also offers an expense ratio of 0.14%. WisdomTree Japan Hedged Equity Fund (DXJ), with a gross expense ratio of 0.48%, is another dedicated Japanese ETF, but, according to the report, also offers additional investor protection to yen/dollar currency fluctuation.

6) Schwab Marks Milestone With OneSource Mutual Fund Platform

Charles Schwab is celebrating 20 years of offering its OneSource mutual fund platform with the release of “Schwab’s Mutual Fund OneSource at 20,” a report that looks back at the evolution of the service and how it “simplifies the way investors buy and sell no-load mutual funds from multiple fund families without paying transaction fees.”

Unveiled in July 1992 with eight fund families and 80 mutual funds, the platform “revolutionized mutual fund investing for millions of individual investors and registered investment advisors (RIAs), and today provides access to more than 430 fund families and 4,400 no-load, no-transaction-fee funds,” according to the company

Click here to read the full Schwab OneSource story.

Read the July 13 Portfolio Products Roundup at


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