Principal Global Investors has introduced the Principal Spectrum Tax-Advantaged Dividend Active ETF (PQDI with a 0.60% net expense ratio) “designed to help U.S. taxpayers boost after-tax income by targeting exposure to qualified dividends,” the company said.
PQDI trades on the NYSE Arca and focuses on income from dividends of preferred securities which are eligible for beneficial tax treatment but also invests in securities not eligible for such treatment. PQDI seeks securities that, at the time of issuance, are eligible to pay dividends that qualify for reduced U.S. federal income tax rates — a “qualified dividend income” (“QDI”) — or for the deduction of qualified real estate investment trusts (“REIT”), which range up to 20%.
PQDI is managed by Spectrum Asset Management, a capital securities investment team within Principal. It is the second ETF managed by Spectrum, following the Principal Spectrum Preferred Securities Active ETF that was introduced in 2017.
BlackRock Introduces New iShares ESG ETFs
BlackRock launched two new suites of environmental, social and governance iShares ETFs that it said are designed to help investors achieve outcomes best aligned with their goals.
The iShares ESG Aware Asset Allocation ETFs include conservative, moderate, growth and aggressive allocation ETFs that track an index composed of a portfolio of underlying equity and fixed income funds with positive ESG characteristics. Each index provides a fixed allocation strategy designed to represent one of those four risk profiles for investors and each has an 0.18% net expense ratio.
These ETFs are iShares ESG Aware Conservative Allocation ETF (EAOK), iShares ESG Aware Moderate Allocation ETF (EAOM), iShares ESG Aware Growth Allocation ETF (EAOR) and iShares ESG Aware Aggressive Allocation ETF (EAOA).
The iShares ESG Advanced MSCI ETFs is the other ESG-focused suite of ETFs. It includes four ETFs that offer exposure to indices of companies with higher ESG scores, while also applying extensive screens related to heavily debated topics including fossil fuels, palm oil, for-profit prisons and controversial weapons.
Those four ETFs are the iShares ESG Advanced MSCI USA ETF (USXF, 0.10%), iShares ESG Advanced MSCI EAFE ETF (DMXF, 0.12%), iShares ESG Advanced MSCI EM ETF (EMXF, 0.18%) and iShares ESG Advanced Total USD Bond Market ETF (EUSB, 0.12%).
BlackRock has now launched 22 new iShares ESG ETFs in all this year across the U.S., Canada and Europe, it said.
Separately, BlackRock Advisors announced that the Boards of Trustees of the BlackRock New York Municipal Income Trust II (BFY), BlackRock New York Municipal Income Quality Trust (BSE) and BlackRock New York Municipal Income Trust (BNY) have approved the reorganizations of BFY and BSE into BNY, which will continue as the surviving fund. The company said it expects the reorganizations will be completed in or before the first quarter of 2021, subject to the requisite approvals by each fund’s shareholders, the refinancing of BNY’s preferred shares and the satisfaction of customary closing conditions.
Gitterman Launches SMART UMAs Focused on Sustainability
Gitterman Wealth Management introduced the Sustainability Metrics Applied to Risk Tolerance Unified Managed Account Models that it said are designed to give clients access to boutique and emerging managers that implement climate science to security selection and portfolio construction in a UMA structure.
The SMART UMA Models include products with “robust financial metrics, sophisticated ESG capabilities and rigorous due diligence processes, and are available to outside” RIAs and retail investors, the firm said.
According to the World Economic Forum, the highest impact and highest probability global risks are mainly climate-related or will be exacerbated by climate change, Gitterman said.
The SMART UMA models feature managers who are “strategically exploring climate scenarios and their related impacts, alongside disclosing risks and opportunities,” it said. Natixis will serve as the tax overlay manager to achieve after-tax returns that may benefit from significant outperformance.