VanEck has launched two new corporate bond exchange-traded funds designed to provide investors with new tools to enhance their investment grade bond exposures.
The new ETFs are the VanEck Vectors Moody’s Analytics IG Corporate Bond ETF (MIG, with a 0.20% net expense ratio) and the VanEck Vectors Moody’s Analytics BBB Corporate Bond ETF (MBBB, 0.25%), both listed on the CBOE BZX Exchange.
MIG seeks to track the MVIS Moody’s Analytics US Investment Grade Corporate Bond Index (US IG Index), while MBBB seeks to track the MVIS Moody’s Analytics US BBB Corporate Bond Index (BBB Index). Both indexes are rules-based and driven by Moody’s Analytics credit risk modeling, VanEck says. The indices rebalance monthly.
In other news, VanEck says it will close and liquidate the VanEck Vectors Coal ETF (KOL), which trades on the NYSE Arca. The Board of Trustees of VanEck Vectors ETF Trust approved the liquidation and dissolution of the fund.
“As the sponsor of VanEck Vectors ETFs, VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management and investor interest, among others,” the firm says, adding: “The decision was made to liquidate the Fund based on an analysis of these factors.”
Hennessy Rebalances Cornerstone Mid Cap 30
Hennessy Funds has completed the annual rebalance of its 17-year-old Hennessy Cornerstone Mid Cap 30 Fund that has about $350 million in AUM, Ryan Kelley, senior vice president and portfolio manager, said Wednesday during a virtual media briefing.
The company has selected 30 stocks with a goal to “combine value investing, earnings growth and momentum,” he told reporters.
The six “keepers” from last year are LPL Financial, kb Home, Lithia Motors, Meritage Homes, Synnex and Williams Sonoma, he noted. Other stocks selected this time include Bed Bath & Beyond, Mattel and Sleep Number.
The largest sector exposure of the fund is again in consumer discretionary, accounting for 31.4% of its holdings. The other two largest sectors it has holdings in are industrials (19.7%) and materials (13.3%).
Nottingham to Convert Mutual Funds to ETFs
Nottingham Company-affiliated entities have filed with the Securities and Exchange Commission for conversion of an existing family of mutual funds to ETFs.
The Board of a Nottingham-administered series trust approved the conversion, the firm says. The initial fund will be managed by Adaptive Investments and is expected to convert in January, with additional funds under the same group to follow shortly after that, it notes.