Virtus, Roundhill Launch Active ETFs: Portfolio Products

Newfleet Asset Management and Virtus ETF Solutions, both affiliates of Virtus Investment Partners, have launched the actively managed Virtus Newfleet ABS/MBS ETF (VABS), which trades on the New York Stock Exchange.

The ETF, which has an expense ratio of 0.49%, seeks to generate income by investing primarily in short-duration, investment-grade securitized debt across asset-backed securities (ABS) and mortgage-backed securities (MBS), including commercial and residential MBS.

The fund expects to invest in asset-backed and mortgage-backed securities with competitive yield and current income across undervalued areas of securitized credit markets.

“We believe active management is a better option in the ABS and MBS sectors of the securitized credit markets, and our approach provides a wider investment opportunity set and much-needed diversification relative to traditional fixed income,” said Newfleet President and Chief Investment Officer David L. Albrycht. “As the demand for shorter duration, income-generating strategies grows, we can employ our relative value approach to exploit market inefficiencies.”

Roundhill Launches Streaming & Technology ETF

Roundhill Investments launched the Roundhill Streaming Services & Technology ETF (SUBZ), an actively managed ETF that invests in companies that manufacture or create the infrastructure necessary to facilitate streaming and that distribute or sell products or services related to the online streaming content space. The sectors include gaming, livestream, video content and audio.

SUBZ holds about 35 stocks, charges a 0.75% net expense fee and trades on the NYSE. Large-caps accounts for close to two-thirds of its holdings; small-caps, 28%; and mid-caps 9%. About half of its holdings are based in the U.S.; one-quarter are based in China and the remainder are in Japan, Sweden, South Korea and Canada.

SEC Approves Custom Baskets for Natixis’ Semi-Transparent ETFs

Natixis Investment Managers is the first asset manager to receive the Securities and Exchange Commission’s approval for the use of custom baskets in its actively managed semi-transparent ETFs that use the NYSE’s proxy portfolio methodology.

The approval enables Natixis to use securities not included in the fund’s proxy portfolio when creating or redeeming shares, which has the potential, according to the company, to reduce trading costs, increase efficiency and improve secondary markets for the shares.

“Ultimately, investors will continue to have access to highly skilled active managers while benefiting from even lower costs and more tax-efficient investment options,” said David Giunta, CEO of Natixis Investment Managers.

Natixis has three semi-transparent ETFs that use the NYSE methodology and trade on the NYSE Arca — the Natixis US Equity Opportunities ETF (EQOP), the Natixis Vaughan Nelson Mid Cap ETF (VNMC) and the Natixis Vaughan Nelson Select ETF (VNSE).

— Check out last week’s portfolio product roundup here: State Street Launches its First Actively Managed Muni Bond ETF: Portfolio Products