June 2012 ETF Roundup: Launches, Filings, And Closures
Stoyan Bojinov: June saw yet another period of strong growth in the ETF lineup, with multiple issuers rolling out new products over the past several weeks. While the pace has certainly slowed from the winter months, there is no shortage of new activity in the space, including a number of first-to-market products that are now hitting the market.
Last month saw the continuation of a trend from the first five months of the year: growth in fixed income funds. Several issuers launched new bond ETFs last month, continuing to build out that part of the product lineup. Among the new additions are a “crossover” corporate bond ETF and another emerging markets corporate bond fund. The commodity front is also quite active; during the past few weeks we’ve seen the launches of ETFs focused on oil sands, MLPs, and metals, as well as a broad-based fund from a financial giant making the leap into the ETP industry. Below, we outline all of the new launches from the month to keep you up to date on all of the latest offerings available [for updates on all new ETFs, sign up for the free ETFdb newsletter]:
New exchange-traded products that began trading in June include:
- This month’s first new fund was claimed by New York based Global X Funds, who launched the new Top Guru Holdings Index ETF (GURU). The ETF is based on the top holdings of hedge fund managers, giving investors the tools to replicate the world’s most successful money managers.
- The Parisian bank BNP Paribas jumped into the ETF game with the launch of its first ETF: STREAM S&P Dynamic Roll Global Commodities Fund (BNPC). The ETF will seek to replicate a broad-based index of commodity futures using a flexible methodology designed to mitigate the impact of contango.
- Exchange Traded Concepts launched an ETF aimed at measuring the performance of companies involved in the oil sands industry: Sustainable North American Oil Sands ETF (SNDS). Oil sands represent a tremendous opportunity in the years ahead, as North American companies look to tap into this increasingly accessible source of energy.
- In mid-June, United States Commodity Funds launched the United States Metals Index Fund (USMI). This ETF is composed of both precious and industrial metals and seeks to reflect the performance of the SummerHaven Dynamic Metals Index Total Return. USMI will implement a methodology designed to tilt exposure away from commodities with steep contangoed futures markets and towards those with strong momentum.
- New to the ETF world, Huntington launched the actively-managed Huntington EcoLogical Strategy ETF (HECO). The fund seeks to offer investors exposure to companies that have positioned their business to respond to changing cultural views on social and environmental responsibility.
- First Trust has launched its first actively-managed ETF: the North American Energy Infrastructure Fund (EMLP). The fund offers exposure to U.S. and Canadian energy infrastructure companies, including MLPs.
- State Street debuted two new innovative ETFs offering exposure to corporate bonds and debt of emerging markets companies. The SPDR BofA Merrill Lynch Crossover Corporate Bond ETF (XOVR) offers exposure to both investment grade and junk corporate bonds–a first for the ETF industry. The SPDR BofA Merrill Lynch Emerging Markets Corporate Bond ETF (EMCD) offers exposure to the dollar-denominated debt of emerging markets corporations.
- ProShares filled a gap in the ETF lineup that was surprisingly not addressed until now with the debut of the Short Euro (EUFX). The new fund complements ProShares’ EUO, which offers -200% daily leveraged exposure to the U.S. value of the euro. This ETF has already gained some traction with traders; more than 40,000 shares changed hands on Friday.
- To close out the month, ALPS debuted its Sector Dividend Dogs ETF (SDOG), which will implement the popular “Dogs of the Dow” strategy across the S&P 500. SDOG will be equal weighted at both a sector and stock level.
The new product pipeline continued to fill in June, with a number of issuers laying the groundwork for future additions to their lineup. The highlights include:
- Zacks has filed plans with the SEC to offer an ETF based on dividends paired with a second ETF based on MLPs. Direxion plans to beef up their extensive offering of leveraged bull/bear products.
- PIMCO is planning to add three additional active ETFs to its growing lineup of fixed income offerings. First timer, Franklin Templeton is looking to enter the ETF game with an actively-managed bond fund.
- ProShares has filed for exemptive relief and is looking to release two new actively-managed ETFs. Renaissance is seeking to launch its first ETF replicating the Renaissance IPO Index.
Written By Stoyan Bojinov From ETF Database Disclosure: No Positions.
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