State Street Global Advisors launched two actively-managed, sector rotation SPDR ETFs with tactical allocation strategies. Each is comprised of several ETFs.
“Sectors have long demonstrated consistent sensitivity to economic and interest rate cycles,” says Dan Farley, CIO of State Street Global Advisors’ Investment Solutions Group. “Our sector selection models provide a unique opportunity to generate meaningful active performance for clients in varying market conditions.”
The SPDR SSGA US Sector Rotation ETF (XLSR) and SPDR SSGA Fixed Income Sector Rotation ETF (FISR) are managed by the firm’s Investment Solutions Group (ISG) comprised of more than 75 strategists, analysts and portfolio managers overseeing more than $266 billion in assets.
The SPDR SSGA US Sector Rotation ETF seeks to provide capital appreciation by overweighting or underweighting S&P 500 Sector ETFs based on ISG’s sector return forecasts and research, which includes a proprietary, quantitative sector selection model. Using the model results ISG applies qualitative judgment to construct a portfolio that seeks to maximize returns while meeting risk targets.
The SPDR SSGA Fixed Income Sector Rotation ETF seeks to provide total return by tactically allocating across income and yield-generating ETFs across the fixed income spectrum. FISR uses a tactical investment strategy based on ISG’s Fixed Income Sector Rotation Model, followed by fundamental review by the portfolio management team. The model provides views on the direction of rates and spreads across the maturity and credit quality spectrums.
Betterment Removes Account Minimums on Custom Portfolios
Betterment removed the old minimum account balance – which was $100,000 – for retail clients to use its Flexible Portfolio.
Betterment said it had received an increased demand for Flexible Portfolio from clients with account balances below $100,000 who want to adjust their portfolio due to a specific situation.
Betterment launched the Flexible Portfolio strategy in March to allow advisors to adjust the asset weights of the funds offered under the Betterment Core Portfolio, which until recently, was comprised of several Vanguard stock ETFs as well as several Vanguard and iShares bond ETFs.
Flexible Portfolio is available for Betterment retail customers and for advisors to use on their clients on the Betterment for Advisors platform but only retail customers were subject to the previous minimum. There is no additional fee to use Flexible Portfolio, which is included in both the digital (25 bps) and premium (40 bps) offerings.
WisdomTree Launches India Ex-State-Owned Enterprises Fund
WisdomTree launched the WisdomTree India ex-State-Owned Enterprises Fund (IXSE) on the NYSE Arca.
IXSE, which has an expense ratio of 0.58%, seeks to track the price and yield performance, before fees and expenses, of the WisdomTree India ex-StateOwned Enterprises Index.
IXSE provides exposure to a more targeted group of equities by investing in companies incorporated and traded in India and excluding common stocks of state-owned enterprises, defined as companies with more than 20% government ownership.
“We believe governments, particularly in emerging markets, may not always be the best stewards of capital, and as a result, government-owned companies might be influenced by a broader set of interests beyond generating profits for shareholders. This can often lead to inefficiencies and can impact the long-term growth potential of these companies,” Jeremy Schwartz, WisdomTree global head of research, explained in a statement.
By excluding state-owned enterprises, IXSE potentially provides an alternative way to gain beta exposure to private sector companies in India and excludes unprofitable banks and financial firms.
Tortoise Introduces a New Closed-End Fund
Tortoise launched a closed-end fund focused on infrastructure. The Tortoise Essential Assets Income Term Fund (TEAF) emphasizes income-generating investments in social infrastructure, sustainable infrastructure and energy infrastructure.
The fund is intended to provide investors with exposure to essential assets sectors across all levels of an issuer’s capital structure, including access to direct investments that may not otherwise be widely available to many investors. The fund raised $260 million in its initial public offering.
SmartX Adds 20 New Strategies to UMA Platform
SMArtX Advisory Solutions, which is a turnkey asset management platform, expanded the number of third-party investment manager models offered on its UMA platform.
SMArtX added 20 new strategies, and now features more than 179 firms and more than 475 strategies. The new firms added include BlackRock, Alpine Capital Research (ACR), IndexDirect, WealthShield, Schwartz Investment Counsel/Ave Maria, and Bluestone Capital Management.
The strategies include a full array of traditional long only, long/short equity, global macro, and direct indexes, all offered in an UMA structure.
Aegon Asset Management Launches Sustainable Fixed Income Strategy
Aegon Asset Management launched the Sustainable Fixed Income strategy, which will provide core fixed income exposure, competitive long-term returns and alignment with broader sustainability trends.
The Sustainable Fixed Income strategy invests in issuers that contribute to, and may benefit from, the long-term sustainability of the global economy, environment and society.
Using a proprietary sustainability research framework, the strategy identifies investment opportunities within corporate credit, structured securities and sovereign bonds across six key sustainability pillars—climate change, eco solutions, resource efficiency, health and well-being, inclusion and sustainable growth.
The strategy also aims to contribute to the Sustainable Development Goals set forth by the United Nations. The Sustainable Fixed Income strategy was launched on April 1 with assets under management of $100 million.
Oranj Adds Three Asset Manager to Its Model Marketplace
Oranj, which offers free, end-to-end wealth management software, announced the addition of Anchor Capital, Natixis, and Putnam products to its growing selection of funds and models available in their popular model marketplace.
Advisors utilizing the model marketplace also have access to a wide variety of investment products, strategist models, and separately managed accounts to create personalized investment solutions.
The end-to-end platform couples the model marketplace with institutional-grade rebalancing, account aggregation with digital client tools, and on-boarding. Seventeen asset managers have joined the Oranj marketplace, bringing the total number of products and models to more than 1,400 – all 100% free of overlay fees. Oranj’s Marketplace Pro — which is available via a flat-fee, annual subscription to advisory firms — provides access to virtually any mutual fund, ETF or stock. This upgrade gives financial advisors the ability to create models and portfolios using products that are of the advisor’s choosing and to conduct rebalancing tasks on those strategies.
PineBridge Launches China A-Shares Quantitative Fund
PineBridge Investments launched a fund that aims to give global investors access to the domestic equity market in China through a quantitatively managed, active equity strategy.
The PineBridge China A-Shares Quantitative Fund invests in equity and equity-related securities connected to the economic development and growth of China. The fund’s reference index is the MSCI China A International Total Return Net Index.
The mutual fund is authorized for sale in Europe, and therefore is governed by regulations from the Undertakings for Collective Investment in Transferable Securities, or UCITS. The PineBridge China A-Shares Quantitative Fund is domiciled in Ireland and registered for sale across Europe.
As one of the only UCITS products in the market to adopt a quantitative approach to Chinese equities, the fund aims to deliver alpha through the combination of local knowledge and a systematic investment process.
The fund is managed by PineBridge Investments Asia Ltd., with investment advice from Huatai-PineBridge Fund Management Co., an onshore Shanghai-based joint venture between PineBridge and Huatai Securities established in 2004.
—Read the last portfolio product roundup here: Hoya Capital Launches Housing ETF: Portfolio Products