On August 23, First Trust rolled out the First Trust International Multi-Asset Diversified Income Index Fund (YDIV) . The YDIV will track a “NASDAQ- managed index of international dividend-paying stocks, international REITs, infrastructure companies based outside the U.S., foreign preferred securities, and one foreign high-yield bond ETF.” The Index allocated 20% towards REITs, preferred stocks and infrastructure, 25% in dividend stocks, and the remaining 15% in the bond ETF. The YDIV is the international version of First Trust’s U.S. focused First Trust Multi-Asset Diversified Income Index Fund (MDIV). The expense ratio for the YDIV is 0.79%.
ProShares recently filed with the SEC in an attempt to bring to market a “short-dated bond fund targeting dollar-denominated emerging market credits from issuers ranging from governments to totally independent companies”. The Short Term USD Emerging Markets Bond ETF will “own fixed-income securities with maturities ranging from 18 months to no more than five years.” ProShares’ plans for a short-dated bond fund reflects concerns among investors in how to prepare better for a rise in interest rates, as global markets recover from the downturn in 2008-2009. A ticker and an expense ratio are not known at this time.
On August 25th, Arrow Funds filed to gain approval from the SEC to self-index their expanding roster of ETFs. Arrow Funds’ move to self-index is a part of a larger move by firms looking to save on indexing costs and bring relatively granular strategies to the market with greater speed. Arrow Funds has selected a proposed self-indexed equity fund, dubbed the Arrow Insights Sector Momentum Index ETF , as their initial offering within this group. The fund will track the Arrow Insights Sector Momentum Index. According to the filing, Arrow Funds is also seeking approval to launch long/short funds and 130/30 funds.
iShares filed two prospectuses detailing their plan to launch two new ETFs: the iShares Interest Rate Hedged Corporate Bond ETF and the iShares Interest Rate Hedged High Yield Bond ETF . Both ETFs reflect the growing move towards hedging instruments as rates continue to rise and bond investments become increasingly unstable for investors. According to IndexUniverse.com, the iShares Interest Rate Hedged Corporate Bond ETF will allocate to the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) which has an expense ratio of 0.15%; and the iShares Interest Rate Hedged High Yield Bond ETF will invest in the iShares iBoxx High Yield Corporate Bond Fund (HYG) which has an expense ratio of
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