As many as 271 ETFs were launched till Dec 28 (read: Why ETFs Are Thriving in 2017).
The last three years have been particularly eventful compared with about 180 ETF initiations in 2014, 150 in 2013 and 170 rollouts in 2012. All these have taken the tally to 2,113 ETFs so far. Not only this, a considerable number of ETFs are in the pipeline, pointing to growing investor interest for exchange-traded products in this market (read: Too Many ETFs Flying in the Market?).
The credit goes mainly to a wide range of innovative and fresh-themed products in the space that suit chancing macroeconomic dynamics and which hold investors’ attention despite the peaks and troughs of the market.
Below are seven ETFs launched in 2017 that have amassed a decent asset base.
Since its inception in March, the fund has amassed about $927.2 million in assets. The underlying MSCI World ex USA Investable Market Index gives exposure to multi-cap stocks from over 20 developed market countries. The 1283-stock fund charges 7 bps in fees. Japan holds the top spot (22.84%) in the fund while financials is the top sector.
Having entered the market in October, the fund has hoarded about $796.1 million in assets. The underlying index of the fund looks to provide investment results of the Nasdaq U.S. Mega Cap Select Leaders Index. The fund charges 12 bps in fees. The index uses a quantitative model designed to recognize equity securities of companies with the largest market cap in the Nasdaq US 500 Large Cap Index, with higher weights attached to securities that are less volatile.
The fund forayed into the ETF universe in January and has grossed about $452.9 million in assets in one year. The fund is based on the ICE U.S. Treasury Short Bond Index, which measures the performance of US Treasury Obligations with a maximum remaining term to maturity of 12 months. The fund charges 8 bps in fees.
The fund entered the market in July and has piled up about $420.6 million in assets so far. The fund tracks the S&P 500 Managed Risk 2.0 Index, which is designed to simulate a downside-protected portfolio that uses a model that includes a targeted volatility and a synthetic option overlay to hedge the downside risk of the portfolio (read: Hedge Against Volatility With These ETFs).
Launched in May, the fund has accumulated about $355.9 million in assets so far. The underlying Nasdaq Chaikin Power US Small Cap Index is a rules-based, quantitative one designed to enhance the Nasdaq US 1500 Index, by selecting stocks with the highest Chaikin Power Gauge rating.
The fund hit the market in September and has amassed about $234.3 million in assets so far. The fund looks to outperform the S&P 500 in rising markets while limiting losses during periods of decline.
Having entered the market just two month ago, the 1411-security fund has managed to gross about $186.2 million in assets. Communications, Consumer Cyclical, Energy and Consumer Non-Cyclical hold double-digit weights in the fund. Effective duration of the fund is 4.01 years and Weighted Average Maturity is 5.06 years (read: iShares Launches High Yield Bond ETF).
The iShares Core MSCI International Developed Markets ETF (IDEV) closed at $58.50 on Friday, up $0.10 (+0.17%). Year-to-date, IDEV has gained 16.84%, versus a 21.71% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Zacks Research.