Our weekly roundup of new fund launches.
Global bond ETF from J.P. Morgan
J.P. Morgan unveiled an ETF to its global bond lineup, the JPMorgan Global Bond Opportunities ETF (JPGB), which carries an expense ratio of 0.55%. An actively managed ETF built off the JPMorgan Global Bond Opportunities Fund, it seeks to capture opportunities across market sector, credit quality, countries and currencies. The firm said the agnostic fund's strategy is designed to extend beyond traditional fixed income investments.
“Our network of global experts and research analysts can scour the globe for opportunities in any market cycle,” said Bob Deutsch, U.S. head of ETFs for J.P. Morgan Asset Management.
Invesco adds two factor ETFs
Invesco announced it is adding two new funds to its PowerShares factor suite of ETFs.
Tracking the S&P 500 High Momentum Value Index is the PowerShares S&P 500 Value with Momentum Portfolio (SPVM) fund. Featuring an expense ratio of 0.3%, the ETF seeks to identify early positive momentum of 100 stocks within S&P 500, while avoiding value traps.
The PowerShares S&P SmallCap Quality Portfolio (XSHQ), with a 0.29% expense ratio, tracks the S&P SmallCap 600 Quality Index. The fund invests in companies with strong balance sheets as measured by accruals. Stocks with higher quality scores receive greater weights, according to the firm.
O’Shares adds an international ETF
O’Shares added an international large cap ETF that focuses on dividend-paying companies.
The O’Shares FTSE Russell International Quality Dividend ETF (ONTL), which has a 0.48% expense ratio, owns over 460 international large-cap dividend stocks, with an average market cap of $16.9 billion. The stocks selected were based on the ex US Qual/Vol/Yield Factor 5% Capped Index, which is developed by FTSE Russell for O’Shares, the firm said.
“As an investor, I want to reduce risk. I want a diversified equity portfolio of the highest quality companies in the world,” said Kevin O’Leary, chairman of O’Shares ETF. “To achieve true diversification, my portfolio needs to be diversified by sector, geography, and currency. ONTL helps me accomplish this objective.”
Risk manager ETFs from First Trust
First Trust Advisors has partnered up with EquityCompass Strategies to offer two new ETFs, the firm said.
EquityCompass Risk Manager ETF (ERM) and EquityCompass Tactical Risk Manager ETF (TERM), both with expense ratios at 0.65%, invest in equity securities of U.S. companies under normal market conditions, the firm said.
The funds seek to protect against market stress. Actively managed by EquityCompass, the funds may invest all or partial assets in cash, cash equivalents and short term fixed income when the U.S. equity market is determined to be unfavorable.
R6 Shares launched for 4 Thornburg Funds
Thornburg Investment Management announced the addition of R6 share classes to four of its existing funds – the Thornburg Global Opportunities Fund (THOGX), Investment Income Builder Fund (TIBOX), Limited Term Income Fund (THRLX) and Strategic Income Fund (TSRSX).
The additions — offered at net asset value with no sales charges, 12(b)-1 fees or any shareholder servicing fees — are aimed at providing greater transparency by separating mutual fund expenses from record-keeping and other service-provider fees, according to the firm.
“We’re meeting the need for more flexible and transparent fee structures with the addition of R6 shares on four more Thornburg funds,” said Christina Stauffer, the firm’s head of DCIO business development.
Long short fund from American Century
American Century Investments is expanding its liquid alternative investment strategies, according to the firm.
The AC Alternatives Disciplined Long Short, formerly known as Disciplined Growth Plus, is available in Investor (ACDJX), Institutional (ACDKX), A (ACDQX), C (ACDHX) and R (ACDWX) share classes, the firm said.
The offering from American Century has been redesigned to act as a long short equity product with variable net exposure to equities that typically range from 30% to 70%, the firm said.
The fund, “is another way to help clients strive to mitigate risk in their portfolios,” said Cleo Chang, senior vice president and head of alternative investments for American Century Investments. “We also believe long short strategies can provide important diversification with the potential for more consistent returns over a full market cycle.”
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