Americas ETP News
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Some Non-Transparent ETFs Face a Tax Hit
December 23, 2021--The actively managed exchange traded fund space has become more lively with the addition of non-transparent ETFs, but with the year coming to an end, some of these new non-transparent offerings face year-end capital gains distributions.
Analysts and executives warned that a lack of redemptions from non-transparent products, along with their limited ability to use custom baskets in tax management, have caused several non-transparent ETFs to pass along year-end capital gains distributions, the Financial Times reports.
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Source: yahoo.com
The BAD Investment Company Launches Flagship ETF
December 22, 2021--The large cap fund is designed to offer exposure to companies operating in the betting, alcohol and drug (pharmaceutical) industries.
The BAD Investment Company is pleased to announce the launch of the BAD ETF (NYSE: BAD).
The indexed, large cap fund is designed to offer investors equally-weighted exposure to the B.A.D. market segments-betting (casinos, gaming, and online gaming operations); alcohol/cannabis (alcoholic beverage manufacturing and distribution and/or cannabis cultivation and sales); and drugs (pharmaceutical and biotechnology product development and manufacturing)- by providing investment results that closely track the performance, before fees and expenses, of the EQM BAD Index (BADIDX).
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Source: The BAD Investment Company
Fund companies have issued a raft of fee cuts to close the year.
December 21, 2021--Fee compression in asset management is accelerating at the end of the year.
On Friday, Vanguard said it would cut fees on 17 funds, including nine ETFs, following Dimensional Fund Advisors'announcement that it would cut fees on 47 mutual funds and three ETFs last week.
Not to be outdone by its two competitors, Schwab yesterday announced that it would cut fees on five fixed income ETFs from 0.05% to 0.04%, a one basis point (bps) reduction.
The five Schwab funds receiving the fee cuts are as follows:
Schwab Short-Term US Treasury ETF (SCHO);
Schwab Intermediate-Term US Treasury ETF (SCHR);
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Source: citywireusa.com
ISS ESG Licenses U.S. Diversity Index for NYSE-Listed ETF
December 21, 2021--ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today announced that V-Square Quantitative Management has licensed the ISS ESG U.S. Diversity Index for its inaugural ETF launch, the V-Shares US Leadership Diversity ETF, which began trading on the New York Stock Exchange today under the symbol VDNI.
Based on ISS ESG's unique Director and Named Executive Officers datasets, the ISS ESG U.S. Diversity Index (ISSDIVUT) is the first index to select constituents exhibiting both broad ethnic and gender representation for board directors and named executive officers (NEOs). Constituents are selected from a universe of large, mid, and small capitalization US companies.
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Source: insights.issgovernance.com
Two APs Are Better Than One: ETF Mispricing and Primary Market Participation
December 20, 2021--Abstract
Exchange-traded funds (ETFs) depend on arbitrageurs to correct deviations between a fund’s price and its fair value. ETFs have designated brokers, or authorized participants (APs), who have a unique right to create and redeem ETF shares, and who can thus trade on ETF mispricing without risk. Using novel regulatory filings, we provide the first description of the US ETF-AP network.
It has a dense core and a sparse periphery, and the observed creation/redemption volumes are highly concentrated. The level of mispricing in a US equity ETF is negatively related to the fund’s network diversity, especially during times of high market volatility. Funds that share more APs exhibit stronger mispricing comovement. We theoretically show that diverse networks help mitigate the effect of shocks to AP-specific arbitrage costs. We highlight the importance of AP balance sheet usage costs in ETF markets by exploiting ETF short-selling halts and the Federal Reserve's purchases of bond ETFs in 2020.
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Source: ssrn.com
SEC Demands Chinese Firms Bolster Risk Disclosures for Investors
December 20, 2021--Chinese companies trading in the U.S. must disclose more about the risks they can pose for investors, according to new guidance from the Securities and Exchange Commission.
The firms need to make more specific and prominent disclosures to comply with federal securities laws, the SEC's unit in charge of reviewing corporate filings said Monday. The agency also said that special purpose acquisition companies, or SPACs, should disclose whether their sponsors or majority of executives are based in China, or whether a merger target is located there.
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Source: bloomberg.com
First Trust Exchange-Traded Fund VIII files with the SEC-FT Cboe Vest Nasdaq-100 Buffer ETF-December
December 20, 2021-First Trust Exchange-Traded Fund VIII has filed a Form 497K-Summary Prospectus with the SEC for the FT Cboe Vest Nasdaq-100 Buffer ETF-December.
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Source: SEC.gov
Regulators Plot Plan B for Stablecoin Rules If Congress Fails
December 17, 2021--A key group of financial overseers said it will take action to rein in stablecoins if Congress fails to pass comprehensive legislation to regulate the tokens, the latest sign that the U.S. government is becoming increasingly alarmed by threats cryptocurrencies pose to the financial system.
Digital assets are some of the top concerns outlined by the Financial Stability Oversight Council in its annual report published on Friday, which also highlighted the dangers posed by climate change, meme stocks and vulnerabilities exposed by the failure of Archegos Capital Management. The council --a panel including all the heads of the U.S. financial agencies -- is ramping up again this year after remaining largely dormant during the Trump administration.
WisdomTree Launches Efficient Gold Plus Gold Miners Strategy Fund GDMN
December 16, 2021--Strategy provides exposure to basket of global gold miners and gold futures
WisdomTree Investments, Inc., an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, announced today the launch of the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN), an actively managed ETF with an expense ratio of 0.45%.
GDMN invests in a portfolio comprised of global equity securities issued by companies in the gold mining business, generally weighted by modified market capitalization, and U.S-listed gold futures contracts. GDMN uses the gold futures in an effort to enhance its capital efficiency. WisdomTree believes that GDMN is an innovative and capital efficient alternative to traditional gold miner ETFs or leveraged gold miner ETFs.
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Source: wisdomtree.com
VanEck to move $6.6bn in muni ETFs to new benchmarks
December 16, 2021--The ETFs will swap existing Bloomberg indices for ones provided by Intercontinental Exchange
VanEck will switch the benchmarks for five municipal bond ETFs with a combined $6.6bn in assets, filings show.
The ETFs will swap their existing Bloomberg indices for benchmarks run by Intercontinental Exchange, effective March 2, the company has disclosed.
VanEck ETFs already used bond pricing data from ICE Data Services and now VanEck wanted to use indices from the same provider, said Mike Cohick, director of ETF product at VanEck.
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Source: ft.com
