Our weekly roundup of new fund launches.
Vanguard slashes fees for 15 funds
Vanguard announced another round of expense ratio reductions, this time for 15 mutual funds.
Seven active state municipal bond funds are among those reporting lower expenses, amounting to estimated cumulative savings of more than $7 million for the firm, according to Vanguard.
Actively-managed funds like Vanguard’s $98 billion Vanguard Wellington Fund Investor (VWELX) and Admiral (VWENX) shares were reduced by one and two basis points to 0.25% and 0.16%, respectively, the firm said.
“We’re pleased to continue lowering the cost of investing for our clients, as low costs are absolutely critical to long-term investment success,” said Vanguard CEO Bill McNabb. “Low fees are the starting point — the first filter in selecting investments. However, we remind investors there are other considerations in selecting a fund and an investment provider as well as other factors that strongly influence outcomes.”
Vanguard clients are expected to save a combined $165 million across a basket of 139 funds, including index funds, actively managed funds and ETFs as a result, the firm said.
Direxion launches ETF with tactical exposure to commodity markets
Direxion launched a tactical exposure ETF intended for commodity markets.
Carrying an expense ratio of 0.70%, the Direxion Auspice Broad Commodity Strategy ETF (COM) seeks to provide total return that exceeds the Auspice Broad Commodity Index, the firm said.
The fund, while providing investors access to a growing sector, is designed to mitigate risk by going to cash when individual commodities drop.
Long-only equity mutual funds report the first positive week in nearly a year.
“Investors recognize the value of diversification and inflation protection provided by commodities within a portfolio,” said Tim Pickering, Founder and CIO at Auspice Capital Advisors. “We can seek to maximize these benefits with a tactical strategy that rides the strongest trends for upside potential, then allow for an exit to limit downside risk and volatility while providing for the best risk-adjusted results.”
New ETF trading platform from Trust Company of America
Trust Company of America unveiled a new ETF trading platform with offerings from Guggenheim Investments and Global X.
Called ETF Custody Advantage, the platform includes 60 domestic and international equity, bond, currency and commodities ETFs, the firm said. TCA will provide a custody fee in an effort to manage the costs on all participating ETFs, which will be automatically applied to assets held in the products on the new platform.
Fixed-income ETF from Arrow Funds
Arrow Funds announced the addition of a fixed-income ETF to its lineup.
The Arrow Reserve Capital Management ETF (ARCM), which has an expense ratio of 0.38%, is a diversified, ultra short-term maturity income portfolio aimed at preserving capital while generating maximum income, Arrow Funds said.
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The find is designed to act as an alternative to traditional money market funds and bank deposits. Halyard Asset Management will sub-advise the fund, according to Arrow.
FundX's sustainable impact fund adheres to ESG standards
FundX Investment Group announced the launch of the FundX Sustainable Impact Fund (SRIFX).
"Our goal is to help investors meet lifelong investment goals and make a difference," said FundX President Janet Brown.
The fund, which requires a $1,000 minimum investment, was launched to provide investors returns while adhering to ESG standards, the firm said. The fund currently has $3.1 million in total assets, according to Morningstar.
"We designed the sustainable impact fund to help investors build wealth and a better world," said FundX President Janet Brown. "Our goal is to help investors meet lifelong investment goals and make a difference."
Active Alts introduces short squeeze ETF
The latest ETF from Active Alts, the Active Alts Contrarian ETF (SQZZ), seeks to profit from stock with a large volume of short interest, the firm says. The manager of the fund will screen securities that are subject to a short squeeze.
The fund, which seeks to lend out the hard-to-borrow securities in an effort to earn a stream of monthly income, has an expense ratio of 1.95% and invests in securities with over $250 million in market capitalization and with at least $1 million a day in trading volume, according to the firm.
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“SQZZ is the first ’40 Act fund to employ this novel strategy of seeking to capitalize on short squeeze opportunities and generate potential income by getting paid for lending securities,” said Brad Lamensdorf, founder of the ETF.
ProShares offers crude oil ETFs
ProShares introduced 3x and -3x leveraged ETFs that track the Bloomberg WTI Crude Oil Subindex.
The ProShares UltraPro 3x Crude Oil ETF (OILU) and ProShares UltraPro 3x Short Crude Oil ETF (OILD) have a 0.64% and 0.71% expense ratio, respectively, according to Morningstar. The funds are its first daily 3x leveraged and inverse crude oil ETFs, the firm said.
“Until now, investment options have been limited to direct investment, open-end diversified core equity and other private funds, and public and private REITs,” said Global Index CEO Kelly Haughton.
“With OILU and OILD, investors can, for the first time, obtain daily 3x and -3x exposure to crude oil with the liquidity, transparency and cost-effectiveness of ETFs,” said Michael L. Sapir, CEO of ProShare Capital Management.
Altegris expands managed futures suite
Altegris has teamed up with London-based GSA Capital to expand its suite of managed futures.
The Altegris GSA Trend Strategy Fund, which includes three strategies, seeks to profit from long-term capital appreciation through utilization of an absolute return strategy.
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The Altegris GSA Trend Strategy A (TRNAX) and Altegris GSA Trend Strategy N (TRNNX) require a $2,500 minimum investment, while the Altegris GSA Trend Strategy I (TRNIX) has a $1 million investment minimum, according to Morningstar.
“Against a backdrop of market uncertainty, we’re pleased to expand our suite of managed futures offerings to provide our clients with access to GSA’s world class strategy,” said Matt Osborne, co-founder and chief investment officer of Altegris.
New commercial real estate investment tool
Institutional investors seeking commercial properties exposure can consider a new fund from Global Index Group.
The duETS U.S. Commercial Property 2X offers securities tied to the U.S. commercial real estate index of the National Council of Real Estate Investment Fiduciaries.
CBRE Capital Advisors is the exclusive broker for duETS, which stands for "Down/Up Equity Trust Securities." It allows investors to long or short commercial real estate values, the firm said.
“Until now, investment options have been limited to direct investment, open-end diversified core equity and other private funds, and public and private REITs,” said Kelly Haughton, Global Index's chief executive officer. “duETS will provide new tools for investors, including the ability to easily hedge their positions.”
