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Global Beta ETFs Adds 2 Factor-Based ETFs: Portfolio Products

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Global Beta ETFs expanded its factor based suite of exchange-traded funds, listing the Global Beta Low Beta ETF (GBLO) and the Global Beta Momentum Growth ETF (GBGR) on the NYSE Arca.

Each ETF has an annual net expense ratio of 0.29%, RIA Global Beta Advisors said. Impact Partners Consulting and Distribution is leading the sales and marketing efforts for the factor-based suite of ETFs, according to Justin Lowry, chief investment officer of Global Beta ETFs.

The two new strategies will “help investors gain targeted factor exposure at a more attractive valuation relative to their peer group,” Vince Lowry, CEO of Global Beta ETFs, said in the announcement. “Our research indicates that, across all relevant factors in the market, improving the price-to-sales ratio within a portfolio can significantly improve returns, and can provide investors an additional level of downside risk mitigation,” he noted, adding: “Given the current market environment today, we believe valuation is more important than ever.”

The Global Beta Low Beta ETF seeks to track the performance (before fees and expenses) of the Global Beta Low Beta Factor Index and is made up of stocks from the S&P 500 index with the lowest beta relative to the S&P 500. The Global Beta Momentum-Growth ETF seeks to track the performance (before fees and expenses) of the Global Beta Momentum-Growth Factor Index, composed of stocks from the S&P 500 index with the highest year-over-year sales growth.

VanEck Merk Gold Trust Cuts Fee 

The net expense ratio for the VanEck Merk Gold Trust ETF was lowered from 0.40% to 0.25%. The ETF trades on the NYSE Arca under the OUNZ ticker.

“A lower cost should provide further incentive for investors to use OUNZ as their preferred gold ETF,” according to Axel Merk, president of Merk Investments.

“OUNZ is the only gold ETF with a patented delivery process, allowing investors to request delivery of the gold they own through OUNZ if and when desired—anywhere in the world,” he said in the announcement. “When markets seized earlier this year, OUNZ continued to trade with high liquidity and we continued to facilitate deliveries,” he added.

Tidal Signs ETF Licensing Deal With Blue Tractor

Tidal ETF Services entered into a license agreement to use Blue Tractor Group’s Shielded Alpha ETF structure.

Toroso Asset Management will serve as the advisor to ETFs in the Tidal ETF Trust that leverage the Shielded Alpha model, the companies said in the announcement.

“Tidal has been growing rapidly by partnering with firms that value innovation, diversity, and excellence to launch distinct ETFs designed to solve investors’ challenges,” according to Tidal CEO Eric Falkeis. “The next frontier in actively managed ETFs is non-transparency, and Blue Tractor offers a unique solution,” he said in a statement, adding: “The goal of this partnership is to help propel innovation in our industry forward.”

The Shielded Alpha ETF structure is a “wrapper” that facilitates active management within an ETF, but without requisite daily full portfolio disclosure, fully shielding a fund advisor’s confidential intellectual property of their alpha generating strategy, according to the companies.

HSBC Introduces ESG Service

HSBC launched a reporting service providing asset owners and managers with independent measurement of how focused their listed asset investments are on environmental, social and corporate governance issues.

The new service will enable asset owners “to keep track of the ESG ratings of their large holdings and help them meet the increasing demand for greater transparency and more insight in this area,” according to HSBC.

“ESG is rising up the agenda for our clients, regulators and investors alike,” Chris Johnson, director of market data for Securities Services at HSBC, said in the announcement. The reporting service will “enable our Securities Services clients to gain meaningful insights into ESG aspects of their portfolios using independent scores and ratings” and allow clients “to see at a glance how large holdings in their selected portfolios are performing using recognized independent ESG criteria,” he said.

The reporting service will include a monthly reporting dashboard, including portfolio-level analysis using ESG ratings and carbon emissions data from MSCI, Sustainalytics and Vigeo Eiris, and can be applied equally to specialist ESG and non-ESG portfolios, HSBC said. It expects to  increase its list of providers over time.

U.S. Global Jets ETF Added to Citi Platform

The airlines-focused U.S. Global Jets ETF was added to Citi’s trading platform, making JETS available to more investors, U.S. Global Investor said.

The development came a month after the ETF, which trades on the NYSE with a 0.60% net expense ratio under the JETS ticker, passed $1 billion in AUM, according to U.S. Global Investor.

The ETF benefited as “investors sought exposure to airline stocks that had been knocked down following coronavirus-related travel restrictions,” the company said, adding: “Between February 18 and June 10 of this year, JETS saw… 70 straight trading days of positive inflows.”

Barclays Makes Ticker Change

Barclays Bank is changing the ticker for its iPath Pure Beta Crude Oil ETNs to OIL.

The exchange-traded notes have a net expense ratio of 0.75% and have been listed on the NYSE under the ticker OLEM. The change is expected to become effective after the close of trading on July 28, the company said.

Barclays did not specify the reason for the name change and did not immediately respond to a request for comment.

— Check out last week’s portfolio product roundup here: Franklin Templeton Expands Active ETF Lineup: Portfolio Products