New products introduced over the last week include new factor ETFs and bond ETFs from iShares and a silver covered call ETN from Credit Suisse.
In addition, North Peak Asset Management announced a new fund aimed at hedging against inflation and the Phoenix Companies launched a new indexed annuity.
Here are the latest developments of interest to advisors:
1) iShares Expands Factor ETF Offerings, Announces Bond ETFs
BlackRock, Inc. announced that its iShares ETFs business has expanded its factor ETF product lineup with the launch of two sets of products: the iShares enhanced ETFs, which are managed using BlackRock research rather than tracking an index, and the iShares MSCI factor ETFs, which seek to track MSCI risk premium indexes. These products were designed in partnership with RIAs and institutional investors, specifically public pensions, to provide a broader range of solutions to help manage equity exposures and risk.
The iShares MSCI USA Momentum Factor (MTUM), iShares MSCI USA Size Factor ETF (SIZE) and iShares MSCI USA Value Factor ETF (VLUE) were designed at the request of institutional investors, such as Arizona State Retirement System (ASRS), who want exposure to a specific individual factor—value, size or momentum—so they can overweight or hedge a single factor that has historically explained a significant part of companies’ return and risk over the long-term. MSCI is also a predominant choice for institutional investors.
BlackRock also announced that iShares has launched four iSharesBonds corporate ex-financials term ETFs. These new products, with defined maturity dates in 2016, 2018, 2020 and 2023, are designed to offer investors bondlike features in addition to the benefits of an iShares ETF including exchange-traded liquidity, transparency and diversification.
The new ETFs are the iSharesBond 2016 Corporate Ex-Financials Term ETF (IBCB); iSharesBond 2018 Corporate Ex-Financials Term ETF (IBCC); iSharesBond 2020 Corporate Ex-Financials Term ETF (IBCD); iSharesBond 2023 Corporate Ex-Financials Term ETF (IBCE). They will provide access to a diversified pool of investment-grade corporate credit with a defined maturity date. While relevant to all investors, the products are expected to appeal to institutional clients such as bank treasurers
2) Credit Suisse Announces Launch of SLVO ETN