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VanEck Model Portfolios Join Envestnet Platform: Portfolio Products

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VanEck model portfolios were added to the Envestnet wealth platform for the first time.

The initial two offerings are the VanEck Morningstar Wide Moat Strategy and VanEck Municipal Allocation Strategy.

The VanEck Morningstar Wide Moat Strategy takes a similar approach to that which underpins the $3.4 billion VanEck Vectors Morningstar Wide Moat ETF.

Similarly, the Municipal Allocation Strategy uses VanEck Vectors Municipal Bond ETFs to “pursue long-term capital appreciation and attractive yields while also seeking to reduce duration and credit risk,” the firm said.

Schwab Reorganizes a Muni Fund

Charles Schwab Investment Management reorganized the Wasmer Schroeder High Yield Municipal Fund (WSHYX) into the Schwab High Yield Municipal Bond Fund (SWHYX).

The actively managed fund is still trading on the Nasdaq, but with a net expense ratio reduced from 0.75% to  to 0.60%.

The reorganization was approved by the fund’s shareholders and followed the completion of Schwab’s acquisition of Naples, Florida-based RIA Wasmer, Schroeder & Co., in July, it said.

SWHYX has “substantially the same investment objective and investment strategies that WSHYX employed,” Schwab said. The fund “seeks to generate interest income that is not subject to federal income tax and will focus on medium- to higher-credit quality municipal securities, investing at least 60% of its assets in investment grade municipal securities,” it noted.

Tortoise Introduces New Infrastructure Fund

Tortoise reorganized the unregistered, private Tortoise Global Renewables Infrastructure Fund Limited into the Ecofin Global Renewables Infrastructure Fund (ECOIX) with a net expense ratio of 1.00%.

ECOIX, listed on Nasdaq, was “built to capitalize on the energy transition underway to reduce global CO2 emissions,” the firm said.

The fund is available to U.S. retail and institutional investors through its institutional class shares.

Innovator Launches Defined Outcome Bond ETFs

Innovator Capital Management launched its first Defined Outcome Bond exchange-traded funds.

The Innovator 20+ Year Treasury Bond 5 Floor ETF – July (TFJL) has a cap of 6.75%, while Innovator 20+Year Treasury Bond 9 Buffer ETF – July (TBJL) has a cap of 9.25%.

TFJL seeks to provide exposure to the upside performance of the iShares 20+ Year Treasury Bond ETF (TLT) to a cap and a floor against downside losses in excess of 5% over the outcome period, Innovator said.

TBJL seeks to provide exposure to the upside performance of TLT to a cap and a buffer against the first 9% of price losses over the outcome period.

Separately, Innovator launched the Innovator Laddered Fund of S&P 500 Power Buffer ETFs (BUFF). BUFF will invest equally in each of Innovator’s 12 monthly S&P 500 Power Buffer ETFs and rebalance semi-annually.

ETC Teams With North Shore Indices on ETF

Private-label ETF advisor Exchange Traded Concepts partnered with index development firm North Shore Indices to launch the North Shore Dual Share Class ETF (DUAL, with a 0.85% expense ratio) on the NYSE.

DUAL seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Dual Share Class Index. The index was designed to track the performance of dual-class companies listed in the U.S.

— Check out last week’s portfolio product roundup here: T. Rowe Price Teams With State Street on Active ETFs: Portfolio Products


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