The U.S. ETF industry is now valued at $3.73 trillion, with about 2,302 funds from, per xtf.com. Though there is growing investor interest for exchange-traded products in this market, we have seen a lot of product closures lately.
The pace of product rollouts also slackened a bit as there were 46 ETF launches in the first quarter, down from about 55 rollouts seen in the year-ago quarter (read:
Top ETF Stories of First Quarter).
February witnessed the maximum launches of 28 funds. The impetus slowed substantially in March with just 6 launches. The severe coronavirus outbreak and the Wall Street’s slipping into the bear territory probably have kept the euphoria in check.
Year to date, total number of ETFs declined 2.25% while ETF assets have fallen 15.71%, as of Apr 6, 2020. Against this backdrop, we highlight below five ETFs that were launched in the first quarter and have amassed a decent asset base within days of hitting the market.
iShares ESG MSCI EM Leaders ETF ( LDEM Quick Quote LDEM - Free Report) — $488.0 million — Launched on Feb 5
The underlying MSCI EM Extended ESG Leaders 5% Issuer Capped Net Index comprises of emerging market large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers. The fund charges 16 bps in fees (read:
ESG ETFs Appear Unscathed by the Coronavirus Carnage). FT Cboe Vest U.S. Equity Deep Buffer ETF - February ( — $397.9 million — Launched on Feb 21 DFEB Quick Quote DFEB - Free Report)
This ETF is active and does not track a benchmark. The prouct provides investors with returns up to a predetermined upside cap of 7.50% before fees, expenses and taxes and 6.65% after fees and expenses, while providing a buffer against losses between -5% and -30% before fees, expenses and taxes over the period from February 24, 2020 to February 19, 2021. The fund charges 85 bps in fees.
Day Hagan/Ned Davis Research Smart Sector ETF (— $39.44 million — Launched on Jan 17 SSUS Quick Quote SSUS - Free Report)
This ETF is active and does not track a benchmark. The fund looks to achieve its investment objective by principally investing in unaffiliated ETFs that track the performance of the individual sectors of the S&P 500 Index. It charges 78 bps in fees.
Direxion Flight to Safety Strategy ETF (— $26.9 million — Launched on Feb 5 FLYT Quick Quote FLYT - Free Report)
This ETF is active and does not track a benchmark. The underlying Direxion Flight to Safety Strategy ETF aims to deliver a simple, yet robust, approach to portfolio risk mitigation from equity market drawdowns while also providing long-term appreciation potential. The fund charges 40 bps in fees.
Absolute Core Strategy ETF ( ABEQ Quick Quote ABEQ - Free Report) — $22.7 million — Launched on Jan 22
This ETF is active and does not track a benchmark. At the current level, the fund holds U.S. dollar (14.49% of the total weight), Berkshire Hathaway Inc (7.97%) and SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) (6.02%) as its top three holdings. The fund also holds several individual equities.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>