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March 16, 2014 at 06:38 AM
New products introduced over the last week include a new international high-yield bond fund from State Street Global Advisors, two Guru ETFs from Global X Funds; a green bond index from Solactive; the “Impact Notes” bond program from IFC and Incapital; and a long-term care insurance product with flexible payment options from Lincoln Financial Group.
In addition, Cambria ETF Trust launched a global-value ETF; First Trust added two ETFs; and New York Life Retirement Plan Services’ stable value products were added to TD Ameritrade’s platform.
Here are the latest developments of interest to advisors:
1) State Street Global Advisors Launches Global High-Yield ETF
State Street Global Advisors (SSgA), the asset management arm of State Street Corporation, has announced the launch of the SPDR Barclays International High Yield Bond ETF (IJNK). The ETF is designed to provide investors with access to high-yield corporate bonds outside theU.S., which may have lower correlations and default rates to comparable domestic options.
IJNK seeks to track the performance of the Barclays Global HY ex-US Domiciled 350mn+ Cash Pay Index, which is designed to be a measure of the international high-yield fixed-rate, fixed-income corporate markets outside theU.S.The securities in the index must have a minimum $350 million market capitalization outstanding in local currency terms and at least one year remaining to maturity. Additionally, securities must be rated high yield (Ba1/BB+/BB+ or below) using the middle rating of Moody’s Investors Service, Standard & Poor’s and Fitch. Excluded from the index are convertible securities, floating-rate notes, fixed-rate perpetuals, warrants, linked bonds and structured products. IJNK’s expense ratio is 0.40%.
2) First Trust Adds Two ETFs
First Trust Advisors L.P. has announced the addition of two ETFs, the First Trust RBA American Industrial Renaissance ETF (AIRR) and the First Trust RBA Quality Income ETF (QINC). The index construction for both funds is based on Richard Bernstein Advisors’ (RBA) proprietary portfolio optimization method, which encompasses a variety of screens and factors and the firm’s macroeconomic analysis and judgment.
AIRR seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of the Richard Bernstein Advisors American Industrial Renaissance Index.
QINC seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of the Richard Bernstein Advisors Quality Income Index, which attempts to control the risks associated with investing in higher-yielding stocks, yet maintain attractive current income.
3) Global X Funds Adds Two Guru ETFs
Global X Funds has announced the launch of the Global X Guru Small Cap Index ETF (GURX) and the Global X Guru International Index ETF (GURI).
GURX, which tracks the Solactive Guru Small Cap Index, will invest in 100 equally weighted companies with a market capitalization between $100 million to $3 billion.
GURI, tracking the Solactive Guru International Index, will invest in the top international holdings from this group of managers. GURI will have 50 equally weighted holdings and gain its international exposure through ADRs and other international companies listed on 13Fs.
4) Cambria ETF Trust Launches Global Value ETF
Cambria ETF Trust and its investment manager Cambria Investment Management LP have announced the launch of the Cambria Global Value ETF (GVAL), a passively managed, strategic-beta ETF that tracks the Cambria Global Value Index. GVAL is comprised of 100 stocks that represent the world’s 11 most undervalued developed and emerging countries, as determined by the index provider.
