New products and changes introduced over the last week include an oil refiners-focused ETF from Van Eck; two ETFs from Compass EMP; four leveraged ETFs from Direxion; four indexes from Eurekahedge and the Chicago Board Options Exchange; and a liquid strategies business from Fort Rock Asset Management and Gemini Hedge.
Also, RISCO Insurance Brokerage announced an insurance product for chief compliance officers; Guardian added a qualifying longevity annuity contract (QLAC); Jackson added a lifetime benefit option and a proprietary index; and financial academic Martijn Cremers launched a website to provide advisors, consultants and investors access to Active Share.
Here are the latest developments of interest to advisors:
1) Van Eck Adds Oil Refiners ETF
Van Eck Global launched the Market Vectors Oil Refiners ETF (CRAK), which seeks to replicate as closely as possible the price and yield performance of the Market Vectors Global Oil Refiners Index (MVCRAKTR), before fees and taxes. In order to be included in the index, companies must generate at least 50% of their revenues from crude oil refining and meet certain size and liquidity requirements.
CRAK has a gross expense ratio of 0.64% and a net expense ratio of 0.59%, which is capped contractually until May 1, 2017.
2) Compass EMP Launches Two ETFs
Victory Capital, which recently acquired Compass EMP, introduced two ETFs: the Compass EMP International 500 Volatility Weighted Index ETF (CIL) and the Compass EMP International High Dividend 100 Volatility Weighted Index ETF (CID). The ETFs track the CEMP Volatility Weighted Indexes.
3) Direxion Adds Four Leveraged ETFs
Direxion launched four leveraged ETFs: the Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL), Direxion Daily Homebuilders & Supplies Bear 3X Shares (CLAW), Direxion Daily Regional Banks Bull 3X Shares (DPST) and Direxion Daily Regional Banks Bear 3X Shares (WDRW).
NAIL seeks to achieve 300% of the daily performance of the Dow Jones U.S. Select Home Construction Index; CLAW seeks 300% of its inverse, or -300%. DPST and WDRW do the same, respectively, for the daily performance of the Solactive U.S. Regional Bank TR Index.
4) Eurekahedge, CBOE Launch Indexes
Eurekahedge and the CBOE introduced four Volatility Indexes that measure the performance of hedge funds employing volatility-based investment strategies. The indexes were created to meet the demands of institutional hedge fund investors seeking more representative benchmarks that reflect the goals of distinct volatility-based strategies.
5) Fort Rock Asset Management Starts a Liquid Strategies Business
Fort Rock Asset Management introduced a liquid strategies business in conjunction with Gemini Hedge providing technology, administration, reporting, compliance and research services. Fort Rock wants to create managed futures and currency multi-manager funds that generate alpha, preserve capital and seek to mitigate risk through full market cycles.
6) RISCO Adds CCO Protect
RISCO Insurance Brokerage launched CCO Protect, which provides personal liability protection for CCOs. The annual premium is approximately $950 for a $250K liability limit and $1,700 for a $500,000 aggregate liability limit before applicable state surplus lines tax and filing fee(s), and subject to underwriting).
7) Guardian Introduces QLAC
The Guardian Insurance & Annuity Company, Inc. added a QLAC for the Guardian SecureFuture Income Annuity.The QLAC allows individuals to designate a portion of their individual retirement account (IRA) assets for use later in retirement so that the funds will not be subject to required minimum distributions (RMDs) beginning at age 70½.
8) Jackson Adds Lifetime Benefit Option, Proprietary Index
Jackson introduced LifePay, a lifetime benefit option within the Jackson AscenderPlus Select fixed indexed annuity. LifePay allows clients to receive guaranteed income for life, as well as the flexibility to start or stop income payments as needed.
In addition, Jackson added a proprietary index, the Strategic4 Index, which is exclusive to the Jackson AscenderPlus Select FIA. It provides contract holders the opportunity to further diversify their income through a U.S.-focused market index composed of 120 companies within the S&P 500 Index.
9) Martijn Cremers Launches Website for Active Share
Financial academic Martijn Cremers launched the www.activeshare.info website provide advisors, consultants and investors free access to Active Share, which measures the actively managed portion of fund portfolios. Active Share represents the percentage of a fund’s portfolio that is different from the holdings of a relevant benchmark index.
Read the August 17 Portfolio Products Roundup at ThinkAdvisor.