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WisdomTree Introduces Cloud Computing Fund: Portfolio Products

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WisdomTree Investments launched a new ETF, The WisdomTree Cloud Computing Fund (WCLD), on the NASDAQ, with a net expense ratio of 0.45%.

The ETF was set up to provide “unique exposure to rapidly growing cloud computing companies, which leverage a distributed network of servers over the internet,” WisdomTree said in an announcement.

The fund is out to “track the price and yield performance, before fees and expenses,” of the Bessemer Venture Partners (BVP) Nasdaq Emerging Cloud Index (EMCLOUD), which tracks cloud software stocks and gained 38.6% since the start of the year through Aug. 31, WisdomTree said, citing Bloomberg data.

“As the world becomes increasingly more digital and connected, the global cloud computing market has grown exponentially and is projected to total nearly $697 billion by 2025,” Jeremy Schwartz, WisdomTree executive vice president and global head of research, said, pointing to Adroit Market Research data.

WCLD will invest in “emerging public companies” listed on the Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange that are involved mainly in providing cloud software and services to their customers, WisdomTree said.

To be considered eligible for inclusion, companies must be cloud computing focused, their annual revenue must have grown by at least 15% in each of the last two full fiscal years, and have a minimum market capitalization of $500 million and a minimum three-month average daily dollar trading volume of $5 million, the firm said. The fund has holdings already in Box, Dropbox and Salesforce.

DoubleLine Introduces a New Fund 

DoubleLine Capital launched the DoubleLine Income Fund, an open-end mutual fund of the DoubleLine Funds Trust, available in two share classes: I shares (DBLIX with a net expense ratio of 0.66%) and N shares (DBLNX with a net expense ratio of 0.91%).

The fund’s investment objective is to “maximize total return through investment principally in income-producing securities,” the firm said in its announcement. The company is looking to achieve that objective by “investing in a portfolio of income-producing instruments selected for their potential to provide a high level of current income, capital appreciation or both,” it said. The fund is benchmarked against the Bloomberg Barclays US Aggregate Bond Index.

Under normal conditions, the fund portfolio will comprise lower credit-quality and unrated debt instruments, DoubleLine Capital said, adding it “may invest in securities of any credit quality and may invest without limit in securities rated below investment grade” and unrated securities.

VanEck Vectors Green Bond ETF Expense Ratio Reduced

The net expense ratio of the VanEck Vectors Green Bond ETF (GRNB) was lowered from 0.30% to 0.20%.

The fund’s underlying index was also changed. It previously tracked the S&P Green Bond Select Index and now seeks to track, before fees and expenses, the performance of the S&P Green Bond U.S. Dollar Select Index, VanEck said.

“The new index is essentially a subset of the prior index, and tracks the investable U.S. dollar denominated portion of the green bond market,” Bill Sokol, ETF product manager at VanEck, told ThinkAdvisor.

The fund’s new index is comprised of U.S. dollar-denominated green bonds that are issued to finance projects expected to have a positive environmental impact, the firm said. To be eligible for inclusion, issuers must disclose how the bond uses proceeds and the bond must also be designated as green by the Climate Bonds Initiative (CBI) based on its assessment of the projects being financed, VanEck said.

“This latest fee reduction allows investors to build a sustainable investment portfolio at a lower cost,” VanEck said.

“Green bonds may be an attractive environmental, social, and governance (ESG) solution for fixed income investors because they are a straightforward and direct way to invest sustainably,” said Sokol, in a statement. “Investors can incorporate U.S. dollar-denominated green bonds into a core fixed income allocation without sacrificing yield or adding currency risk.”

Voya’s Retirement Business Adds New Target Date Solution

Voya Financial’s retirement business launched MyCompass Index, a new target date fund (TDF) solution.

Designed by flexPATH Strategies, the new index is now available to all of Voya’s retirement plan customers and was “designed to address the unique retirement needs of all individual plan participants,” Voya said.

“As one of the most widely used investment options in defined contribution plans, target date funds provide a relatively simple way for Americans to save and invest for retirement,” said Charlie Nelson, CEO of retirement and employee benefits at Voya Financial, in a statement. “We recognize that many individuals have diverse financial goals and risk tolerances, which may not be defined by a date alone. MyCompass Index combines the ease of target date fund selection with the unique needs of plan participants.”

MyCompass Index includes these main features and benefits, the firm said: multiple “participant glide paths” (conservative, moderate and aggressive to address the unique retirement needs of individual participants); fund name transparency with a customized name combining one’s retirement year and plan profile; and “fiduciary protection.”

Target date funds (TDFs), which are commonly offered as retirement plan options, reached $2.1 trillion in AUM in employer-sponsored defined contribution plan accounts at the end of 2017, up from $1.3 trillion in 2015 and custom TDFs represent an estimated $430 billion, Voya said,  citing data from the Defined Contribution Institutional Investment Association.

Touchstone Premium Yield Equity Fund Gets a New Name

Touchstone Investments renamed the Touchstone Premium Yield Equity Fund as the Touchstone International ESG Equity Fund and appointed Rockefeller Asset Management, a division of Rockefeller Capital Management, as sub-advisor.

The goal and principal investment strategy of the fund, which has a net expense ratio of 1.17%, have also changed, the firm said. The actively managed fund now “employs a high-conviction, bottom-up and fundamental investment approach that integrates ESG research to provide additional insight into a company’s long-term competitive advantage and help identify risks and opportunities.”

The fund “seeks long-term growth of capital by primarily investing in equity securities of non-U.S. companies in developed markets, though it may invest up to 30 percent of its net assets in securities of companies in emerging and frontier markets,” the company said.

Despite the changes, the fund retained its ticker symbols: TPYAX for A shares, TPYCX for C shares and TPYYX for Y shares. The symbol for the new Institutional shares is TPYIX.

“Rockefeller has a recognized legacy of actively managing portfolios of U.S. and non-U.S. holdings that fully integrate ESG research and shareholder engagement into the investment process,” according to Steve Graziano, president of Touchstone Investments.

Check out last week’s portfolio product roundup here: John Hancock Reduces Expenses — Again: Portfolio Products.