It’s turning out to be a busy summer in new ETF/ETN product launches.
A common theme among the latest round of new ETF/ETN offerings is investments concentrated in narrow market segments along with products that use leveraged long/short strategies.
Here are some of the latest ETF/ETNs to hit the market:
UBS E-TRACS 2x Leveraged Long Alerian MLP Infrastructure Index (MLPL)
MLPL is an exchange-traded note or ETN that aims to double the daily performance of the Alerian MLP Infrastructure Index. The underlying index is comprised of 25 energy infrastructure master limited partnerships. The note pays a variable quarterly coupon. MLPL’s annual expenses are 0.85% and its maturity date is July 9, 2040.
Mars Hill Global Relative Value ETF (GRV)
AdvisorShares Investments launched GRV calling it the “first actively managed long/short ETF.” The fund uses a “relative value” approach created and managed by Mars Hill Partners, which combines long positions in the most attractive country, sector and industry ETFs, with an equal dollar amount short in the least attractive country, sector and industry ETFs. GRV employs a fund-of-funds strategy by owning other ETFs. GRV’s net annual expense ratio is 1.49%.
“GRV has an institutional-caliber investment strategy that is designed to pursue consistent positive absolute returns regardless of the direction of the stock market or interest rates. We are excited to bring investors access to this compelling investment strategy through an actively managed ETF,” said Noah Hamman, CEO and Founder of AdvisorShares.
Global X Brazil Consumer ETF (BRAQ)
New York-based Global X Funds debuted the Global X Brazil Consumer ETF (BRAQ). The fund tracks the Solactive Brazil Consumer Index, which is designed to track the performance of the consumer sector in Brazil. Over the next few months, Global X plans to add more Brazilian focused sector ETFs that include financial stocks, industrials, materials and utilities. BRAQ holds 28 stocks and has annual expense ratio of 0.77%.
Emerging Global Shares Indxx India Small Cap ETF (SCIN)
SCIN is linked to the Indxx India Small Cap Index which contains 75 publicly traded small company stocks domiciled in India. Commercial banks, IT services and software are among the top industry sectors represented. The fund’s net annual expenses are 0.85%.
PowerShares DB 3x Long 25+ Year Treasury Bond ETN (LBND)
LBND is based on three times the daily returns of the DB Long U.S. Treasury Bond Futures Index with the returns of the T-Bill Index. Leverage is reset monthly. Annual expenses are 0.95%. ETNs are bond-like securities linked to the performance of an index, currency or commodity.
PowerShares DB 3x Short 25+ Year Treasury Bond ETN (SBND)
SBND is based on three times the daily returns of the DB Short U.S. Treasury Bond Futures Index with the returns of the T-Bill Index. Leverage is reset monthly. Annual expenses are 0.95%.
In other news, the ETFS Physical Silver Trust (SIVR) and ETFS Physical Swiss Gold Trust (SGOL) have added call/put options trading. SGOL’s total AUM is just under $550 million and SIVR is around $160 million.
