Our weekly roundup of new fund launches.
WisdomTree ETF provides global exposure, but skips Mexico
In a nod to current U.S. politics, the latest WisdomTree ETF provides exposure to global markets but avoids Mexico, according to Bloomberg News.
The WisdomTree Global ex-Mexico Equity Fund (XMX), which has a 0.35% expense ratio, is the first ETF designed to deliberately exclude the country from its exposure, Bloomberg said. The launch comes amid a rising concern about Mexico’s future under President Donald Trump’s threats to renegotiate the North America Free Trade Agreement and impose a tax on imports.
“If the U.S.-Mexico relations continue to sour, there would be an interest in a product like this,” said Mohit Bajaj, a director of ETF trading solutions at WallachBeth Capital. Mexican stocks have gained 5.2% this year and are trading near where they were before Trump's election victory sent them into a free-fall, Bloomberg reported.
A new index fund from W.E. Donoghue
W.E. Donoghue’s Power Momentum Index Fund, one of the industry’s first tactical momentum indices, is now available in a mutual fund format, according to the firm.
The fund’s Class A (MOJAX) has a $1,000 investment minimum, Class I (MOJOX) has a $100,000 minimum and its Class C (MOJCX) is available for $2,500, according to the firm. The offering seeks to generate growth while preserving capital in all market cycles utilizing the W.E. Donoghue’s Power Momentum Index — one of the financial services industry’s first tactical momentum indices, the firm claims.
Global X announces a founder-run companies ETF
Like companies that are still helmed by their founders? A new ETF from Global X Funds is aimed at investors who value such devoted leadership.
The Global X Founder-Run Companies ETF (BOSS), which has an expense ratio of 0.65%, said it will hold a basket of U.S. large and mid-cap businesses led by CEOs who are also the original founders of their firms.
Companies run by their founders provide 10 times higher equity ownership in their companies than with the average S&P 500 CEO, according to Global X. This is the fourth offering in firm’s “Alpha” suite of funds.
Maiden high-yield, low volatility ETF from IndexIQ
IndexIQ launched its first high-yield, low volatility ETF.
Designed to track the S&P U.S. High Yield Low Volatility Corporate Bond Index, its IQ S&P High Yield Low Volatility Bond ETF (HYLV) implores a rules-based approach that identifies high yield bonds deemed to have less credit risk, as determined by a formula that combines a bond’s spread and duration, or its marginal contribution to risk.
The offering, which has an expense ratio of 0.40%, is subadvised by MacKay Shields, a $95 billion fixed income boutique owned by New York Life Investment Management, according to the firm.
Voya’s new Journey Index Annuity
Voya announced efforts to expand its suite of fixed index annuity products with the Voya Journey Index Annuity, according to the firm.
The product’s savings approach is designed to protect from declining markets, featuring indices from J.P. Morgan and Citigroup — J.P. Morgan Meridian Index and Citi Dynamic Asset Selector 5 Excess Return Index.
Account values in the first stage of its two-stage approach can earn an annual performance credit when the selected index stays above its initial level in its first six years, the firms said.
In its second stage, 100% of the selected index gains over that seven-year period are then credited to the original premium.