The popularity of the ETF industry seems to be growing by leaps and bounds. The U.S. ETF industry is now valued at $3.78 trillion, with about 2,186 funds. Not only this, a considerable number of ETFs are in the pipeline, pointing to growing investor interest for exchange-traded products in this market.
The current year appears to ride on this solid momentum, already having about 197 new funds on board. The pace of rollout was especially sturdy in the first two months of the year, slackened a bit in the middle and again gathered steam in the third quarter. Around 66 ETFs have hit the market in the third quarter so far.
The credit goes mainly to a wide range of innovative and fresh-themed products in the space, which hold investors’ attention despite the peaks and troughs of the market.
Below are five ETFs launched in Q3 that have amassed a decent asset base within days of hitting the market.
JPMorgan BetaBuilders Dev Asia ex-Japan ETF ((BBAX - Free Report) – $630.5 million – Launched on Aug 7
The fund tracks the Morningstar Developed Asia Pacific ex-Japan Target Market Exposure Index. The 167-stock fund is heavy on financials (36.9%), followed by real estate (12.7%) and materials (10.6%). The fund charges 19 bps in fees (read: What's Behind the Surge in Japan ETFs?).
Global X Adaptive US Factor ETF (AUSF - Free Report) – $53.26 million – Launched on Aug 28
The underlying Adaptive Wealth Strategies U.S. Factor Index looks to dynamically allocate across three sub-indices that provide exposure to U.S. equities that exhibit characteristics of one of three primary factors: value, momentum and low volatility.
The fund charges 27 bps in fees. No stock accounts for 2.19% of the portfolio. Financials (26.25%), Industrials (13.58%), Real Estate (10.73%) and Consumer Staples (10.48%) are the top four sectors of the fund.
MicroSectors FANG+ Inverse ETN (GNAF - Free Report) – $50.16 million – Launched on Aug 1
The MicroSectors FANG+ Index Inverse ETNs are linked to the performance of the NYSE FANG+ Index. The NYSE FANG+ Index includes 10 highly liquid stocks that represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies. It charges 95 bps in fees (read: Leveraged FAANG ETFs: What Investors Need to Know).
FlexShares High Yield Value-Scored Bond Index Fund (HYGV - Free Report) – $50.19 million – Launched on Jul 17
The fund tracks the Northern Trust High Yield Value-Scored US Corporate Bond Index. The fund holds 267 securities and it charges 37 bps in fees. The fund is heavy on industrials (32.93%) and consumer (24.52%). The United States accounts for about 82.15% of the fund, followed by Canada (6.37%) and the United Kingdom (3.46%).
Janus Henderson Mortgage-Backed Sec ETF (JMBS - Free Report) – $32.37 million – Launched on Sep 12
The fund seeks a high level of total returns consisting of income and capital appreciation. It charges 35 bps in fees. FNMA TBA 30yr 4% October Delivery takes about 31.85% of the ETF, followed by 18.82% invested in FNMA TBA 30yr 3.5% October Delivery and 8.61% invested in FNMA TBA 30yr 5% October Delivery.
Vanguard Total World Bond ETF (BNDW - Free Report) – $22.43 million – Launched on Sep 5
The fund looks to track the performance of a broad, market-weighted index that measures the investment returns of investment-grade U.S. bonds and investment-grade non-U.S. dollar-denominated bonds. It gives exposure to short-, intermediate-, and long-term investment-grade corporate U.S. and non-U.S. bonds. It charges 9 bps in fees.
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