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.