Actively managed strategies are an “exciting new frontier” for exchange-traded funds, according to WisdomTree.
The ETF and ETP sponsor and asset manager recently launched two transparent actively managed multifactor ETFs, the WisdomTree Emerging Markets Multifactor Fund (EMMF) and the WisdomTree International Multifactor Fund (DWMF).
According to Jeremy Schwartz, WisdomTree Director of Research, “we believe our Modern Alpha approach represents a new breed of strategies that incorporate the pursuit of outperformance with the benefits of the ETF structure.”
The WisdomTree Emerging Markets Multifactor Fund (EMMF) seeks to achieve capital appreciation through a transparent actively managed strategy, investing in emerging market equity securities that have the highest potential for returns, based on proprietary measures of valuation, quality, momentum and volatility reduction factors. Currency risk is managed through dynamic currency hedging. EMMF has a net expense ratio of 0.48%.
The Wisdom Tree International Multifactor Fund (DWMF) uses the same strategy to invest in developed market equity securities excluding the U.S. and Canada, as well as dynamic hedgin. Its net expense ratio of 0.38%.
Vanguard to Launch Global Credit Bond Fund
Vanguard filed a preliminary registration statement with the Securities and Exchange Commission for a new actively managed fund, expected to launch in November 2018.
The Vanguard Global Credit Bond Fund will provide investors with diversified, predominately investment grade exposure to the U.S. and international credit markets. The fund will invest in both corporate and non-corporate obligations and will exclude government-guaranteed issues.
Its investments in non-U.S. securities will represent both developed and emerging markets and most will be hedged to the U.S. dollar, enabling investors to pursue a global credit premium without adding currency risk.
The fund’s advisor will focus on identifying relative value across multiple countries, yields, currencies, credit ratings, and cost bases. Security selection, sector allocation and interest rate views will factor into portfolio decisions.
The fund will offer two share classes: Investor Shares with an expense ratio of 0.35% and Admiral Shares with an expense ratio of 0.25%.
Innovator Lists Three ETFs That Seek to Protect Against Losses of 9%, 15%, or 30%
Innovator Capital Management announced the listing of three new ETFs that seek to offer investors exposure to the S&P 500 Price Return Index, with downside protection levels — or “buffers” — of 9%, 15%, or 30% over an outcome period of approximately one year, at which point each ETF will reset.
The Innovator S&P 500 Buffer ETF (Cboe: BJUL) is designed to track the return of the S&P 500 (up to a predetermined cap) while buffering investors against the first 9% of losses over the outcome period, before fees and expenses.
The Innovator S&P 500 Power Buffer ETF (Cboe: PJUL) is designed to track the return of the S&P 500 (up to a predetermined cap) while buffering investors against the first 15% of losses over the outcome period, before fees and expenses.
The Innovator S&P 500 Ultra Buffer ETF (Cboe: UJUL) is designed to track the return of the S&P 500 (up to a predetermined Cap) while buffering investors against a decline of 30% of losses over the Outcome Period, from -5% to -35%, before fees and expenses. Investors are exposed to loss between 0% and 5% and over 35% over the outcome period, before fees and expenses.
All three funds have an expense ratio of 0.79%.
Invesco Adds Two Defined Maturity Bond ETFs to its BulletShares Suite
Invesco launched two new BulletShares ETFs, the BulletShares 2028 Corporate Bond ETF (BSCS) and the BulletShares 2026 High Yield Corporate Bond ETF (BSJQ).
The ETFs will be incorporated into the firm’s BulletShares Corporate Bond and BulletShares High Yield Corporate Bond ETF portfolios, which provide defined maturity exposure through investment-grade corporate bonds in a transparent ETF wrapper.
The BulletShares family of ETFs invest in bonds with a minimum issuance size of $500 million, with an issuer cap of 5%. In the final six months leading up to final maturity, bonds held within the BulletShares ETFs will mature and proceeds will be reinvested in cash and cash equivalents.
Each ETF will terminate on December 31 of its respective maturity year. At termination, each fund will make a cash distribution to the then-current shareholders of its net assets.
The new ETFs will track the Nasdaq BulletShares USD Corporate Bond 2028 Index and the Nasdaq BulletShares USD High Yield Corporate Bond 2026 Index, and will rebalance monthly.
BSJQ has a total expense ratio of 0.42%, and BSCS has a total expense ratio of 0.10%.
Parametric Launches Systematic Alternative Risk Premia Fund
Parametric Portfolio Associates launched the Parametric Research Affiliates Systematic Alternative Risk Premia Fund (Institutional Class: ESATX).
The fund, whose investment objective is total return, seeks to provide market exposures across four asset classes — equities, fixed income, commodities and currencies — by taking long and short positions in derivative instruments.
“Risk premia” are the returns that assets are expected to generate in excess of the return of a risk-free investment as compensation for taking risk. The fund’s strategy focuses on so-called alternative risk premia that are not commonly considered in the management of portfolios investing primarily in securities on a long-only and unlevered basis.
The fund seeks to generate positive returns from exposure to carry, value and momentum factor risk premia. Depending on market conditions, the fund may also seek to generate positive returns from exposure to the equity volatility factor risk premium.
The fund is co-managed by two Parametric investment professionals. Eaton Vance Management is its investment advisor and Parametric serves as the its subadvisor. Research Affiliates also subadvises the fund on a nondiscretionary basis. ESATX has a net expense ratio of 0.99%.
Betterment for Advisors Updates Rollover Capabilities
Betterment for Advisors launched a new feature that will allow financial planners to initiate and complete a retirement account rollover on behalf of their clients in as little as 60 seconds.
This process is now completely paperless and fully integrated, meaning no outside firms are used in the process and everything is done through Betterment.
According to Betterment, this feature enhances its paperless back office, allows for more advisor control, and contributes to a more seamless platform.
Letting advisors assist clients on their rollovers helps an advisor act more efficiently and also makes moving money much easier, according to Betterment.
AssetMark Adds New MarketDimensions Model Portfolios to Platform for Financial Advisors
Twelve new AssetMark MarketDimensions portfolios, which are comprised of mutual funds from Dimensional Fund Advisors, will be added to the AssetMark platform.
AssetMark will be the strategist using Dimensional Fund Advisors’ mutual funds, which are based on the drivers of higher expected returns. The AssetMark MarketDimensions portfolios are aligned with six risk profiles to meet the diverse needs of investors across various life stages.
The Dimensional Fund Advisors approach is grounded in economic theory and insights from financial science which inform the eponymous “dimensions” of expected returns around which their portfolios are structured. For equities, these are: Market, Company Size, Relative Price, and Profitability, and for fixed income they are Term, and Credit.
MoneyGuidePro Creater and Wealth Access Platform Announce Strategic Integration
PIEtech, the creator of the leading financial planning software for advisors MoneyGuidePro, announced the completion of a deep integration with Wealth Access, an independent personal financial management and account aggregation platform.
Advisors can easily sync financial data from Wealth Access to MoneyGuidePro, saving time and resources. The integration also enables advisors to send financial plans and other reports from MoneyGuidePro to the Wealth Access digital vault, allowing for a seamless flow of information between the two platforms and from advisor to client.
Clients and prospects now have single-sign on into MoneyGuidePro from the Wealth Access client portal. In a click, clients can see the impact of potential changes to their financial plan through the implementation of the MoneyGuidePro Confidence Meter into the Wealth Access portal.
The Wealth Access and MoneyGuidePro integration is now available for all users of both platforms.
qplum Expands Product Suite to Derivatives for Institutional Clients
qplum, an asset manager for retail and institutional businesses, announced the launch of its Multi-Strategy AI managed futures program (QMAP) for institutional clients.
QMAP gives investors access to a diversified investment strategy that trades across different geographies and asset classes. It is designed to target investments with very little correlation to both the stock market and trend-following strategies, trading futures on fixed income, equity indices, foreign-exchange, commodities and volatility.
The strategy uses qplum’s proprietary, deep learning framework that powers other portfolios offered by the firm. QMAP is available for institutional clients that are defined as Qualified Eligible Persons as per CFTC Rule 4.7.
–Read last week’s portfolio product roundup here: Defiance ETFs Launches Virtual Reality ETF: Portfolio Products