Invesco launched a new suite of defined maturity BulletShares ETFs with exposure to emerging markets debt.
BulletShares Emerging Markets ETFs offer investors the opportunity to precisely control emerging markets duration exposure by targeting a unique entry point on the emerging markets debt yield curve.
“The new BulletShares Emerging Markets ETFs continue to democratize the bond laddering process for investors, offering a convenient and liquid way to meet the market for defined income needs,” explained Dan Draper, Global Head of ETFs at Invesco, in a statement. “Offering new debt exposure in the BulletShares family speaks to Invesco’s commitment to accelerating growth inthe decade-old suite.”
The suite includes the following four ETFs:
- Invesco BulletShares 2021 USD Emerging Markets Debt ETF (BSAE)
- Invesco BulletShares 2022 USD Emerging Markets Debt ETF (BSBE)
- Invesco BulletShares 2023 USD Emerging Markets Debt ETF (BSCE)
- Invesco BulletShares 2024 USD Emerging Markets Debt ETF (BSDE)
BulletShares Emerging Markets Debt ETFs may also mitigate local currency exposure by focusing on U.S. dollar-denominated bonds. Similar to individual emerging markets bonds, BulletShares offer the potential for monthly income and a cash distribution at the fund’s termination.
John Hancock Investments Launches a Multifactor Emerging Markets ETF
John Hancock Investments expanded its ETF product lineup with the launch of John Hancock Multifactor Emerging Markets ETF (JHEM).
Dimensional Fund Advisors, which is a subadvisor to 13 existing John Hancock Investments ETFs, was selected to design the underlying emerging-market equity index for the new ETF.
The new ETF tracks the John Hancock Dimensional Emerging Markets Index, which is a rules-based index of large-cap stocks in emerging markets, which may include frontier markets, that have been selected based on sources of expected returns.
JHEM trades on the NYSE Arca and has a net expense ratio of 0.55%.
Legg Mason Adds an Actively Managed Taxable Fixed Income ETF
Legg Mason launched its first actively managed taxable fixed-income ETF.
The Western Asset Total Return ETF is sub-advised by Legg Mason affiliate Western Asset Management Company, a globally integrated fixed-income manager, and seeks to maximize total return consistent with prudent investment management and liquidity needs.
The fund is benchmarked against the Bloomberg Barclays U.S. Aggregate Index and employs an active process that is both top-down and bottom-up to identify attractive investment opportunities. Active management of duration, sector and security selection offers greater flexibility to respond to dynamic market conditions.
The Western Asset Total Return ETF has a net expense ratio of 0.45%.
Innovator Lists Three New S&P 500 Defined Outcome ETFs
Innovator Capital Management launched three S&P 500 Defined Outcome ETFs, which have begun trading on the Cboe. All three have an expense ratio of 0.79%.
The Innovator S&P 500 Buffer ETF (BOCT) 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 (POCT) and Innovator S&P 500 Ultra Buffer ETF (UOCT) are similarly designed to track the return of the S&P 500 (up to a predetermined cap) while buffering investors against the first 15% of losses and 30% of losses, respectively over the outcome period, before fees and expenses.
Research Affiliates Introduces New RAFI Diversity & Governance Strategy
Research Affiliates launched of the RAFI Diversity & Governance strategy.
RAFI Diversity & Governance integrates gender-diversity metrics with empirically robust return drivers that are linked to good governance and financial discipline. It is designed for investors who want to embrace the benefits of diversity while preserving the potential for long-horizon outperformance.
RAFI Diversity & Governance uses the proprietary gender leadership diversity methodology developed by LeaderXXchange, a change-driven organization that advises and promotes diversity and sustainability in governance, leadership, and investment. The methodology uses public data that companies disclose as well as proprietary databases from Paris-based environmental, social, and governance data provider Vigeo Eiris.
Research Affiliates is partnering with BNP Paribas, a leader in impact and sustainable investing, to globally market, distribute, and support the implementation of the strategy. BNP is an exclusive provider of structured products linked to the RAFI Diversity & Governance indices, and serves as a counterparty for OTC swaps.
Indices based on the RAFI Diversity & Governance strategy will be constructed, published, and licensed through RAFI Indices, LLC, a sister company of Research Affiliates.
iM Global Partner and Dolan McEniry Launch a U.S. Corporate Bond Mutual Fund