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Firm with top-performing ETFs plans new fund focused on fintech: Fund Scan

Our roundup of fund industry news.

Ark Investment Management plans fintech ETF
Ark Investment Management, which currently runs the two top-performing ETFs over the last three years, announced plans to launch a new ETF focused on fintech, according to Bloomberg News.

The Ark Fintech Innovation ETF, which plans to charge $7.50 for every $1,000 invested, will invest in companies that aim to change the way the financial sector operates, the regulatory filing says. Ark currently manages a similar fund in Japan, where the firm is a subadvisor for various mutual funds from Nikko Asset Management.

Strategist recommend that investors with a long-term horizon or fund managers looking to remove risk from their portfolios move into safer stocks like utilities.
Brokers monitor financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference, in London, U.K., on Thursday, June 8, 2017. The pound could plunge to as low as $1.20 on Friday, a level last seen in January, should the U.K. snap election lead to a hung parliament, according to a Bloomberg poll of analysts. Photographer: Jason Alden/Bloomberg

Although fees for the new fund are significantly higher than the $5.76 for every $1,000 charged by the average thematic fund, the similarly priced Ark Web x.O ETF (ARKW), which has a 0.75% expense ratio, returned more than all other unleveraged funds, gaining 34% over the last three years, Bloomberg News reports. The Ark Innovation ETF (ARKK), which has a 0.75% expense ratio, is the second-highest ranked with a 30% return over the same period.

ProShares announces new pet care ETF
A new ETF from ProShares aims to track the FactSet Pet Care Index, which is comprised of companies that generate half their revenues from the pet care industry; a sector that has grown an average of 7.6% since 2005 and is projected to reach more than $72 billion this year, according to Bloomberg News.

The ProShares Pet Care ETF (PAWZ), which will charge a fee of $5 for every $1,000 invested, is the industry's second pet-related ETF, following the Gabelli Pet Parent Fund NextShares (PETZC), which started trading in June.

PETZC, which has so far attracted $1.2 million in assets, charges a fee of $9 per $1,000 invested.

Vanguard launches global credit bond fund
Vanguard expanded its active fixed income lineup with the Vanguard Global Credit Bond Fund, the firm said.

The new fund, managed by Daniel Shaykevich and Samuel C. Martinez, is comprised of 65% U.S. dollar-denominated and 35% non-U.S. dollar-denominated — developed and emerging markets — investment grade securities, including stocks issued by corporate and noncorporate credit entities, the firm said.

“Vanguard has long been recognized as a fixed income leader, offering investors a comprehensive range of bond funds and ETFs covering corporate, government, and municipal markets of varying maturities,” said John Hollyer, global head of Vanguard’s fixed income group. “The new Global Credit Bond Fund is an attractive option for investors seeking an active core holding with diversified, global exposure to credit.”

VanEck introduces video game ETF
A new fund from VanEck aims to tap into the growing popularity of competitive video gaming, Investopedia reports.

The VanEck Vectors Video Gaming and eSports ETF (ESPO), which has an expense ratio of 0.55%, aims to track the MVIS Global Video Gaming and eSports Index (MVESPOTR), "which is intended to track the overall performance of companies involved in video game development, eSports, and related hardware and software," according to VanEck.

Columbia Threadneedle announces new muni ETF
Columbia Threadneedle Investments has expanded its strategic beta ETF lineup with the launch of the Columbia Multi-Sector Municipal Income ETF (MUST).

The fund has an expense ratio of 0.28% and tracks the Beta Advantage Multi-Sector Municipal Bond Index, the firm said.

Franklin expands passive lineup
Franklin Templeton Investments added three ETFs to its FranklinLiberty lineup; the Franklin FTSE Saudi Arabia ETF (FLSA), Franklin FTSE South Africa ETF (FLZA) and Franklin FTSE Latin America ETF (FLLA).

They have expense ratios of 0.39%, 0.19% and 0.19%, respectively, according to Morningstar.

Northern Trust launches integrated trading solution
Northern Trust has launched Integrated Trading Solutions, an outsourced trading capability that seeks to improve the trading and performance outcomes for asset owners and asset managers by reducing cost and risk, the firm says.

Fees were nearly half the price of the top-performing active funds.
September 4

"Through our newly-launched end-to-end integrated trading capability, we are positioned to deliver an immediate solution to help our clients address these challenges." Guy Gibson, head of institutional brokerage for EMEA & APAC at Northern Trust, said in a statement.

Litman Gregory Fund Advisors adds high income alt fund
Litman Gregory Fund Advisors announced the launch of a high income alternatives fund. The fund, known as Litman Gregory Masters High Income Alternatives Fund, will be available on most trading platforms in investor (MAHNX) and institutional (MAHIX) share classes.

The fund, which investment minimums of $1,000 and $100,000, respectively, seeks to preserve capital over time by generating current income and capital using diverse and flexible strategies.

BlackRock announces inclusion and diversity fund with Thomson Reuters
BlackRock, in collaboration with Thomson Reuters, has launched an ETF that aims to provide a way to invest in companies promoting diversity and inclusion practices, BlackRock says.

The ETF (OPEN), which has an expense ratio of 0.25%, seeks to track a Thomson Reuters index that ranks more than 2,000 global publicly-traded companies based on 24 metrics related to diversity, news and controversies, inclusion and people development.

Delta Data launches proprietary product manager
Delta Data announced a new tool for trust companies, Proprietary Product Manager, which supports the construction, trade execution and administration of proprietary funds for trust companies, record keepers, insurance companies and broker dealers.

The aim of the new tool is to create and manage proprietary products, including collective investment trusts, target-date funds, fund-of-funds, wrapped funds and variable annuities.
The technology attempts to track various versions of products as well as allow users to initiate changes at the lead security level.

Vanguard Charitable unveils 3 ESG options
Vanguard Charitable has released three ESG investment options, using ETFs opened earlier this year, according to the firm.

Donors will be able to invest charitable assets into ESG U.S. Stock (ESGV), ESG International Stock (VSGX) and ESG Global Stock, which is a proprietary 70/30 blend of the U.S. and international ETFs. ESGV has an expense ratio of 0.12% and VSGX has an expense ratio of 0.15%.

"Our donors are increasingly interested in aligning their charitable investment strategy with their personal values," Jane Greenfield, president of Vanguard Charitable, said in a statement.

State Street launches new ETF, lowers fees on four others
State Street Global Advisors is reducing the expense ratio for four of its SPDR ETFs and launching a new ETF.

The SPDR Solactive Hong Kong ETF (ZHOK) seeks to track a market cap index that is designed to measure equity market-performance of large and mid-cap companies in Hong Kong. The product has an expense ratio of 0.14%. Four single-country ETFs began to track market-capitalization weighted indices, rather than the StrategicFactors smart beta indices they previously followed.

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