New products and changes introduced over the last week include two ETFs from ProShares within the high-yield bond market, as well as several portfolios with sector-rotation strategies from Beaumont Capital and Envestnet.
In addition, Lincoln Financial Group says it is launching Lincoln WealthPreserve Survivorship Indexed Universal Life.
1) ProShares Launches Two ETFs
ProShares has launched two funds that provide pure exposure to the credit component of the high-yield bond market uncoupled from the interest rate component. ProShares CDS North American HY Credit ETF (TYTE) and ProShares CDS Short North American HY Credit ETF (WYDE) are listed on the BATS exchange.
TYTE and WYDE get pure exposure to changes in credit spreads by investing in index-based credit default swaps (CDS), instruments that reflect the market’s view of a bond issuer’s credit quality. The funds’ exposure is not leveraged. TYTE can provide investors exposure to the high-yield bond market without the risk associated with rising interest rates. WYDE can be used to hedge against the credit risk in high yield bonds.
2) Beaumont Capital and Envestnet Offer Sector-Rotation Portfolio Strategies
Beaumont Capital Management (BCM) has launched nine portfolio strategies on the Envestnet platform. They are the BCM Advantage series and Relative Strength series of sector rotation strategies and the BCM Small Cap Sector Rotation strategy.