Our roundup of new fund launches your clients may be thinking about.
Vanguard adds its first active ESG fund
Vanguard filed for its first active ESG fund: the Global ESG Select Stock Fund, according to the firm.
The fund, expected to be available for investment by mid-year, will hold stocks over an extended time horizon in an effort to minimize portfolio turnover, according to Vanguard. Wellington Management, which will govern the fund, will select approximately 40 companies that demonstrate long-standing ESG practices and management teams with proven track records of good capital allocation decisions for shareholders.
“Vanguard’s new Global ESG Select Stock Fund is taking a distinctive approach to ESG investing, seeking long-term outperformance through the selection of companies that integrate leading ESG practices into their corporate strategies,” said Matthew Brancato, head of Vanguard’s portfolio review group.
With expense ratios of 0.45% and 0.55% for Admiral and Investor shares, respectively, the new fund from Vanguard is expected to be among the lowest-cost in the active ESG category.
Goldman Sachs launches five themed ETFs
Goldman Sachs announced the launch of five new ETFs that focus on creators and adopters of innovation, across a range of sectors market caps and geographies, according to the firm.
The funds, which have expense ratios of 0.50%, are the Goldman Sachs Motif Data-Driven World ETF (GDAT), the Goldman Sachs Motif Finance Reimagined ETF (GFIN), the Goldman Sachs Motif Human Evolution ETF (GDNA), the Goldman Sachs Motif Manufacturing Revolution (GMAN) and the Goldman Sachs Motif New Age Consumer ETF (GBUY). Each will focus on industries where growth is driven by technology – such as manufacturing, finance and data, according to the company.
“These products are really focusing on who’s driving advances in innovation in these different sectors of the market,” said Mike Crinieri, Goldman Sachs Asset Management’s global head of ETF strategy.
Hartford Funds introduces Securitized Income Fund
Hartford Funds added the Hartford Schroders Securitized Fund (HITIX), a sub-advised fund by Schroders Investment Management.
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The funds include a wide range of offerings from emerging markets to precious metals, multi-strategy and REITs.
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The fund, which has a minimum investment of $2,000, aims to provide long-term returns by investing in U.S. and foreign fixed and floating rated securitized credit instruments across the yield curve, according to the firm.
“Securitized credit has historically provided investors an avenue to higher potential returns while seeking to eliminate some downside risk,” said Vernon Meyer, chief investment officer at Hartford Funds.
Rothko adds its first mutual fund
Rothko Investment Strategies has launched its first mutual fund, the Rothko Emerging Markets Equity Fund (RKEMX).
The fund, which has a $1 million investment minimum, applies AI to fundamentally driven value investing across non-U.S. equity markets, the firm said. Its active, defensive, value-oriented investment process seeks to learn and use fundamental expert investment rationales while avoiding the behavioral biases of human stock selectors.
Legg Mason launches active ETF
Legg Mason announced the launch of the actively managed Western Asset Short Duration Income ETF (WINC).
The fund, which has a short-duration fixed-income strategy, aims to generate income through a diversified portfolio with emphasis on low interest rate sensitivity, higher credit quality and active credit selection, according to the firm.
"WINC targets short-duration credit exposure while leveraging Western Asset's global investment capabilities and strong risk management program, employing an active process that is both top-down and bottom-up to help identify attractive credit and income opportunities while actively managing risk," said Michael C. Buchanan, deputy chief investment officer of Western Asset.
AdvisorShares announces active ETF
AdvisorShares announced the launch of the AdvisorShares Sabretooth ETF (BKCH).
Managed by Sabretooth Advisors, the fund will seek to hold companies using cloud computing and blockchain technology, according to AdvisorShares. The fund, which has an expense ratio of 0.85%, will invest in U.S.-listed stocks and American deposit receipts.
