The Reality Shares Nasdaq NexGen Economy ETF (BLCN) will hold between 50 to 100 constituents at any given time and rebalance semiannually, The ETF tracks the Reality Shares Nasdaq Blockchain Economy Index, comprised of companies committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others.
In order to qualify for inclusion in the underlying index and BLCN, companies must receive a high Blockchain Score based on the following characteristics: role in blockchain ecosystem, blockchain product stage, blockchain economic impact, Blockchain Institute membership, research and development expenditure, company filings and innovation.
Fidelity to Expand Factor-Based ETFs with Launch of two International ETFs
Fidelity Investments is expanding its factor-based ETF offerings for individual investors and financial advisors with the introduction of two international factor-based ETFs: Fidelity International High Dividend ETF (FIDI) and Fidelity International Value Factor ETF (FIVA).
The new ETFs, which have expense ratios of 0.39%, are available to individual investors and financial advisors commission-free through Fidelity’s online brokerage platforms.
FIDI seeks to provide investment results that correspond to the total return of dividend-paying stocks, as represented by the Fidelity International High Dividend Index. The index consists of stocks of companies with high dividend yields, low dividend payout ratios and high dividend growth.
FIVA seeks to provide investment results that correspond to the total return of international stocks exhibiting value characteristics, as represented by the Fidelity International Value Factor Index. The Fidelity International Value Factor Index consists of stocks of companies with high free-cash-flow yield, low enterprise value to EBITDA (earnings before interest, taxes, depreciation and amortization), low price to tangible book value and low price to future earnings.
American Century Launches ETFs Focused on U.S. Quality Value, Diversified Corporate Bonds
American Century Investments launched its first ETFs: American Century STOXX U.S. Quality Value (VALQ) and American Century Diversified Corporate Bond (KORP).
VALQ is an index-based value fund, based on the STOXX 900 Index, designed for investors pursuing capital appreciation. It seeks to deliver a more attractive risk/reward profile than the market capitalization-weighted value investing typical of traditional index funds. The fund utilizes American Century’s Intelligent Beta2 methodology, which strives to dampen the cyclicality of value investing in pursuit of strong risk-adjusted returns throughout the market cycle.
KORP is an actively managed corporate bond fund designed for investors seeking current income. The fund emphasizes investment-grade debt while dynamically allocating a portion of the portfolio to high yield in a single, systematically managed portfolio.
Strategy Shares Launches New ETF
Strategy Shares launched a new ETF that seeks to generate results that correlate generally with the performance of an index within a new indexing category called Target Distribution Indexes.
The Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) is designed to support a 7% annual distribution rate, all or a portion of which may include a return of capital.
HNDL’s investment strategy seeks results that correlate generally to the performance of the Nasdaq 7HANDL Index, which consists of a well-diversified, multi-asset portfolio of low-cost ETFs and employs modest leverage in an amount equal to 23% of the total portfolio. The Index seeks to offer the potential for high monthly distributions while maintaining a stable net asset value over time.
HNDL has adopted a policy to pay monthly distributions on fund shares at a target rate that represents an annualized payout of approximately 7% on the fund’s per-share net asset value on the date of a distribution’s declaration. All or a portion of a distribution may consist of a return of capital.
Seeyond Becomes Independent Affiliate of Natixis Investment Managers
Natixis Investment Managers announced that Seeyond, formerly an investment division within Natixis Asset Management, is now an independent global affiliate of Natixis Investment Managers as of Jan. 1.
With more than $8 billion under management, the realignment of Seeyond as an independent investment manager is designed to accelerate expansion of the business, with a goal of doubling assets over the next three years, with the support of Natixis Investment Managers’ global distribution platform.
Emmanuel Bourdeix, formerly co-chief investment officer, was promoted to chief executive officer of Seeyond, while Natixis Asset Management’s Chief Executive Officer, Matthieu Duncan, assumes the new role of Chairman of its Board of Directors.
Noya Fields Family Charitable Funds to Join Fossil Fuel Divestiture Movement
The Noya Fields Family Charitable Funds will officially join the growing movement of foundations, educational institutions, pension funds, sovereign wealth funds governments and municipalities that are divesting their portfolios of any fossil fuel-related investments.
“We have tried very hard to keep our current investments in environmentally conscientious businesses, but still have legacy holdings and co-mingled investment funds that almost certainly have some amount of fossil fuel related exposure,” Ken Fields, co-founder and administrator for the funds, said in a statement.
According to Fields, the decision to take more immediate action was motivated by the recent announcement by Governor Cuomo that New York State would divest its pension funds from fossil fuels.
ETF Industry Leader Launches Purview Investments and Initial Product
ETF industry leader Linda Zhang announced the launch of Purview Investments, a new provider of high-quality ETF research and actively managed ETF portfolios.
Purview’s initial product — Purview Impact Solutions — is a global multi-asset product built using primarily environmental, social and governance (ESG) ETFs as the underlying holdings. It will provide clients the opportunity to invest in companies around the world that are screened according to industry accepted ESG criteria.
DeVere Group Launches Cryptocurrencies App
deVere Group is launching deVere Crypto, a cryptocurrency app available for Apple and Android. The app allows users to store, transfer and exchange five major cryptocurrencies, which include Bitcoin and Ethereum.
— Read last week’s portfolio roundup: Deutsche Asset Management Expands High-Yield ETF Suite: Portfolio Products.