Victory Capital launched a new exchange-traded fund that seeks to provide a risk-aware, high income approach to investing in emerging markets
The VictoryShares Emerging Market High Div Volatility Wtd ETF (CEY), which began trading on the Nasdaq Stock Market, offers exposure to high dividend-yielding emerging market stocks and seeks to provide investment results that track the performance of the CEMP Emerging Market High Dividend 100 Volatility Weighted Index, before fees and expenses.
The CEMP index methodology combines fundamental criteria and volatility weighting in an effort to outperform traditional cap-weighted indexing strategies. Rather than weighting stocks by size, which results in concentration in the largest companies in the index, the CEMP methodology weights stocks based on volatility (standard deviation over the past 180 trading days). The goal is to offer investors a more balanced approach to achieving broad market exposure. To be included in the index, a company must have been profitable over the past four quarters.
“Investors seeking income now have the option to further diversify their portfolios with dividend-yielding emerging market stocks,” said Mannik Dhillon, President, VictoryShares and Solutions. “With many emerging market companies currently out-yielding their U.S. counterparts, we believe it’s an appropriate time to consider a risk conscious, tax efficient approach to investing in high income-producing emerging market equities.”
CEY has a next expense ratio of 0.5%.
Columbia Threadneedle Investments Launches Columbia Adaptive Retirement Series
Columbia Threadneedle Investments launched an innovative new target date solution for the retirement marketplace, the Columbia Adaptive Retirement Series.
Based on the firm’s proprietary Adaptive Risk Allocation methodology, the solution aims to provide investors with capital appreciation and current income consistent with the target retirement year while seeking to smooth the ride through volatile markets.
The Adaptive Retirement Series currently consists of five target date funds, spanning the 2020, 2030, 2040, 2050 and 2060 vintages; five-year vintage funds may be added at a later date. The funds seek exposure to a global portfolio of stocks, bonds and inflation-hedging assets (commodities, TIPS and REITs).
Differing from target date strategies that typically offer a glidepath that automatically reallocates assets to a more conservative profile as the target retirement date approaches, the Columbia Threadneedle solution maintains a diversified risk allocation throughout the lifecycle, reducing aggressiveness along the glidepath without sacrificing asset class diversification.
Deutsche Asset Management Launches Benchmark International Equity ETF Suite
Deutsche Asset Management announced the launch of Xtrackers Germany Equity ETF (Bats: GRMY) and Xtrackers Eurozone Equity ETF (Bats: EURZ), effective October 27. Each of GRMY and EURZ will have an expense ratio of 0.15% and will provide benchmark exposure to the stock markets of Germany and the Eurozone respectively.
GRMY seeks to track the Nasdaq Germany Large Mid Cap Index, which is designed to track the performance of the German equity market. EURZ seeks to track the Nasdaq Eurozone Large Mid Cap Index, which is designed to track the performance of equity securities from issuers based in the countries in the Economic and Monetary Union of the European Union.
Northern Trust Makes Fee Reductions to Select FlexShares ETFs
Northern Trust announced a reduction in the maximum annual management fee on the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF).