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6 Successful New ETFs of First-Quarter 2021

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The popularity of ETF investing has been going through the roof and it took about 20 years to reach this height. After a smashing 2020, the pace of ETF launches has been robust in 2021. In the first quarter of 2021, we saw about 83 ETF launches following 318 new ETFs in 2020.

The pace of rollout, in fact, charged up after 2019 which saw about 246 launches compared with approximately 270 each in 2018 and 2017. The demand has been pretty strong. Investors should note that the last few years have been particularly eventful compared to about 240 ETF launches in 2016, 300 rollouts in 2015, 180 ETF initiations in 2014, 150 in 2013 and 170 in 2012.

However, most of the ETF launches have been thematic lately. The investment objective has been pretty innovative as it suits changing macroeconomic dynamics and holds investors’ attention despite the peaks and troughs of the market.

Below are six ETFs launched in the first quarter of 2021 that have amassed a decent asset base.

VanEck Vectors Social Sentiment ETF (BUZZ - Free Report) – $361.2 million

The fund hit the market on Mar 4 and saw immense success within a very short period of time. The underlying BUZZ NextGen AI US Sentiment Leaders Index tracks the performance of the 75 large-cap U.S. stocks which exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources including social media, news articles, blog posts and other alternative datasets. The fund charges 75 bps in fees (read: Follow Dave Portnoy & Reddit Rebellion with These ETFs).

Horizon Kinetics Inflation Beneficiaries ETF (INFL - Free Report) – $130.2 million

The fund entered the market on Jan 12. This is an actively managed ETF that seeks long-term growth of capital in real terms. Since the first quarter of 2021 was all about inflationary expectations on faster-than-expected bets on economic growth, the ETF fetched in sizable assets (read: ETF Strategies to Hedge Against Inflation).

Invesco International Developed Dynamic Multifactor ETF (IMFL - Free Report) – $128.9 million

The fund was launched on Feb 24. The underlying FTSE Developed ex US Invesco Dynamic Multifactor Index of the fund is an index of foreign equity securities designed to reflect a dynamic combination of factor investing strategies that have historically outperformed other factors during various parts of the economic cycle.

Main Thematic Innovation ETF (TMAT - Free Report) – $63.6 million

The fund was rolled out on Jan 29. The actively managed ETF looks to achieve its objective through dynamic thematic rotation. It picks emerging, disruptive, and innovative themes that have a large “addressable market.” The fund offers a fund-of fund approach as it buys ETFs investing in those innovative themes. SPDR Kensho New Economies (KOMP), ARK Genomic Revolution ETF (ARKG) and ProShares Online ETF (ONLN) have 10%, 10% and 9% weight in the fund, respectively, at the current level. The expense ratio of the fund is 1.65%.

AdvisorShares Alpha DNA Equity Sentiment ETF  – $57.3 million

The fund was launched on Feb 3. The AdvisorShares Alpha DNA Equity Sentiment ETF is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing in U.S. exchange listed equity securities, primarily consisting of common stock of large, mid and small capitalization U.S. companies, while hedging overall market exposure.

Roundhill Streaming Services & Technology ETF  – $40.8 million

The fund hit the market on Feb 10. The Roundhill Streaming Services & Technology ETF is an actively managed ETF that looks to offer investors exposure to the streaming industry (read: Another Streaming and Gaming ETF in the Making).

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