New products and changes introduced over the last week include a suite of strategic beta ETFs from Franklin Templeton; an inverse ETF from Direxion; advisory changes for a Vanguard fund; and subadvisor changes for a Touchstone fund.
In addition, Franklin Square launched a feeder fund and Schwab Stock Plan Services enhanced its mobile capabilities.
Here are the latest developments of interest to advisors:
1) Franklin Templeton Launches LibertyShares, Strategic Beta ETFs
Franklin Templeton Investments launched LibertyShares, its first foray into the strategic beta arena. This new line of business with LibertyQ includes three multifactor core portfolio funds and one fund that focuses on stocks with high and persistent dividend income.
The ETFs use proprietary LibertyQ indexes constructed using four factors (quality, value, momentum and low volatility) designed to pursue lower volatility and higher risk-adjusted returns over the long term.
The Franklin LibertyQ Global Equity ETF (FLQG) has an expense ratio of 0.35% and tracks the LibertyQ Global Equity Index, which seeks higher risk-adjusted returns than the MSCI ACWI Index.
Franklin LibertyQ Emerging Markets ETF (FLQE), with an expense ratio of 0.55%, tracks the LibertyQ Emerging Markets Index, which seeks higher risk-adjusted returns than the MSCI Emerging Markets Index.
The Franklin LibertyQ International Equity Hedged ETF (FLQH) has an expense ratio of 0.40% and tracks the LibertyQ International Equity Hedged Index. It seeks higher risk-adjusted returns than the MSCI EAFE Index.
The Franklin LibertyQ Global Dividend ETF (FLQD), with an expense ratio of 0.45%, tracks the LibertyQ Global Dividend Index, which offers exposure to high-quality, dividend-oriented stocks.
2) Direxion Adds Inverse ETF
Direxion launched another inverse ETF, this one not leveraged. It’s called the Direxion Daily S&P 500 Bear 1X Shares (SPDN), and it seeks investment results, before fees and expenses, the inverse of the performance of the S&P 500 Index. The ETF’s net expense ratio is 0.45%.
3) Vanguard Makes Advisory Changes for Active Equity Fund