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WisdomTree to Close and Liquidate 10 ETFs: Portfolio Products

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WisdomTree is closing and liquidating 10 of its exchange-traded funds after a review of its fund family, the firm said.

Three ETFs trade on the Cboe: the WisdomTree Dynamic Long/Short U.S. Equity Fund (DYLs), Europe Multifactor Fund (EUMF) and Japan Multifactor Fund (JNMF). Three trade on the NYSE Arca: Asia Pacific ex-Japan Fund (AXJL),  ICBCCS S&P China 500 Fund (WCHN), and Yield Enhanced Global Aggregate Bond Fund (GLBY), and four trade on Nasdaq: Middle East Dividend Fund (GULF), Emerging Markets Consumer Growth Fund (EMCG), Negative Duration High Yield Bond Fund (HYND and Negative Duration U.S. Aggregate Bond Fund (AGND).

Explaining why the funds were chosen to be closed and liquidated, the company said, “After carefully evaluating multiple factors, including length of time on the market, asset levels, limited market demand and competitive positioning, WisdomTree believes it would be in the best interest of each Fund and its shareholders to close and liquidate the Funds identified above.”

The final day of trading for each ETF will be May 27. Shareholders who do not sell their ETF shares by that date will have their shares automatically redeemed for cash based on each ETF’s net asset value, which is expected to be provided to shareholders through their brokers or other financial intermediaries on or around June 9, WisdomTree said.

BNY Mellon Introduces Tech Solution for ActiveShares ETFs

BNY Mellon launched an end-to-end technology solution to support ActiveShares non-transparent actively managed ETFs. The solution delivers a digital workflow from order placement through execution of underlying securities associated with creation and redemption activity.

This new structure was created by Precidian Investments and gained SEC Trading & Markets approval in 2019, BNY Mellon said. “Legg Mason plans to be one of the first-movers to launch under [this] model with BNY Mellon as their ETF service provider,” BNY Mellon said.

Separately, BNY Mellon Investment Management introduced eight new ETFs it said were “designed to cover the core exposure in a typical asset allocation strategy” and “will be among the lowest-cost ETFs in the industry.”

The first three Morningstar-benchmarked equity ETFs started trading on NYSE and include: the BNY Mellon US Large Cap Core Equity ETF (BKLC, with a net expense ratio of 0.00%); BNY Mellon US Mid Cap Core Equity ETF (BKMC, 0.04%); and BNY Mellon US Small Cap Core Equity ETF (BKSE,0.04%).

BNY Mellon plans to launch in the coming weeks two additional Morningstar-benchmarked equity ETFs — the BNY Mellon International Equity ETF (BKIE, 0.04%) and BNY Mellon Emerging Markets Equity ETF (BKEM, 0.11%), followed by three fixed income ETFs benchmarked against the Bloomberg Barclays Fixed Income indices: BNY Mellon Core Bond ETF (BKAG, 0.00%); BNY Mellon Short Duration Corporate Bond ETF (BKSB, 0.06%); and BNY Mellon High Yield Beta ETF (BKHY, 0.22%).

Barclays Plans Reverse Split

Barclays is implementing a 1 for 40 reverse split of its iPath S&P GSCI Crude Oil Total Return Index ETN (OILNF).

The exchange-traded note trades on the over-the-counter market with a 0.75% net expense ratio. The closing indicative value of the ETN on April 30 will be multiplied by 40 to determine the reverse-split adjusted closing indicative value of the ETNs, the firm said. The ETNs will start trading over the-counter on a reverse-split adjusted basis after that and will retain the same ticker symbol, Barclays said.

Investors who hold a number of ETNs that are not divisible by 40 as of the close of business on April 30 will receive one reverse-split adjusted ETN for every 40 ETNs held on May 1 and a cash payment for any odd number of ETNs remaining, the firm said. The cash amount due on any partials will be determined on May 7, based on the closing indicative value of the reverse-split adjusted ETNs on such date, it said. That amount will be paid by Barclays Bank on May 12, it said.

Voya Launches New HSA Digital Assistant

Voya Financial launched a new myHealthMoney digital assistant designed to help workers make more informed decisions when they decide how much to contribute to their Voya health savings accounts.

The online tool is powered by the SAVVI Financial wellness platform and can be personalized to each user’s unique needs. The myHealthMoney digital assistant will be available to any participant who has a Voya HSA, including Voya Retirement plan participants who have a Voya HSA, the firm said.

Most high-deductible health plans are combined with an HSA that enables an employee to allocate pre-tax dollars to help cover medical costs.  “The challenge is working Americans often don’t know how much to contribute to their HSAs, especially when other savings goals are added to the mix,” Voya noted.

The myHealthMoney online tool was “designed to make health care savings decisions easier by providing a suggested amount to contribute to their Voya HSA,” it said.

The digital assistant also evaluates an employee’s current and projected health care spending, as well as tax savings, to recommend what percentage should come from the user’s Voya HSA vs. spending “out of pocket” to help cover their annual health care expenses, it added. The tool also takes into account an employee’s stated retirement goals when assessing his or her current and future overall spending needs and employees can use it to reassess their contribution amounts when their life circumstances change, Voya said.

IPX Platform to Expand Annuity Products

The Investment Provider Xchange is making additional annuity products available for distribution throughout this year as it streamlines the process for advisors.

The solutions provider for retirement plan professionals said the move “directly supports the needs and business objectives of fee-based advisors,” adding “at its core, IPX is an enhanced retirement plan recordkeeping application that is fully optimized for fee-based advisors in the governmental space.”

“IPX maintains those relationships while also permitting self-directing individuals to make investment choices from a wide selection of low-cost institutional share classes,” according to James Olson, IPX managing director.

GLP Investment Services, an investment advisory firm in Farmington Hills, Michigan, “serves thousands of participants in more than three hundred 403(b) plans on IPX and is an early adopter of the expanded offering,” IPX said.

The December 2019 passage of the SECURE Act increased interest in IPX from annuity product providers, the company said, noting that legislation requires participants’ accrued benefits to be expressed as a guaranteed lifetime income stream.

— Check out last week’s portfolio product roundup here: New Addepar Pricing Assurance Program for RIAs: Portfolio Products


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