ETF Odds & Ends: Matthews Asia Debuts ETFs

The week saw a number of launches and the completion of several closures.

Last week saw a total of 14 launches, eight of which were ETFs offering leveraged and inverse exposure to individual stocks.

Among the other ETF rollouts during the week were three actively managed ETFs from ETF newcomer Matthews Asia. The Matthews Emerging Markets Equity Active ETF (MEM), Matthews Asia Innovators Active ETF (MINV) and the Matthews China Active ETF (MCH) all launched on Thursday on the NYSE Arca with expense ratios of 0.79%.

The funds evaluate companies based on their fundamental characteristics in order to select those most likely to exhibit sustainable growth.

MEM targets emerging markets at the global level, while MINV is a pan-Asian fund that covers developed, emerging and frontier markets, with a focus on science- and technology-related companies. MCH targets China’s markets, including Hong Kong and Macau, and can take into account ESG criteria when selecting its holdings.  

Tuesday saw the launch of the actively managed RiverNorth Enhanced Pre-Merger SPAC ETF (SPCZ) by RiverNorth Capital Management and TrueMark Investments; it lists on the NYSE Arca with an expense ratio of 0.89%. The fund invests in precombination special purpose acquisition companies (SPACs). RiverNorth is the subadviser to the fund, while TrueMark is the adviser.

"SPCZ is the first pre-merger SPAC ETF to opportunistically deploy leverage while giving investors access to RiverNorth’s trading strategies and programs that seek to derive value from buying and selling SPAC securities including units, common shares, and warrants," said TrueMark CEO Mike Loukas in a press release.

Also on Tuesday, the AAM Transformers ETF (TRFM) made its debut on the NYSE Arca with an expense ratio of 0.49%. The fund tracks an index of U.S.-listed equities of companies that are likely to benefit from paradigm shifts in consumer behavior and technological innovation such as the rise of autonomous vehicle technology; the shift to online retail from brick-and-mortar stores; improved cellular data technology; and improvements in green energy technology.

Completed Closures

Also during the week, several funds shut down. Monday was the last day of trading for the AVDR US LargeCap ESG ETF (AVDG) and the AVDR US LargeCap Leading ETF (AVDR). Both funds launched at the end of 2020 but failed to gather significant assets.

On Friday, another trio of ETFs from different issuers saw their last day of trading. The affected funds include the AWTM Ultra-Short Duration Enhanced Income ETF (AWTM), the ETFMG Real Estate Tech ETF (HHH) and the ETFMG Prime 2x Daily Inverse Junior Silver Miners ETF (SINV).

Looking ahead, the SonicShares Airlines, Hotels, Cruise Lines ETF (TRYP) will cease to trade after the close of market on July 22, while the Euclid Capital Growth ETF (EUCG) will cease to trade after July 28.

Other Changes

Two funds changed their expense ratios during the week, with the JPMorgan Inflation Managed Bond ETF (JCPI) increasing its expense ratio from 0.25% to 0.28% as of July 7. Meanwhile, the FlexShares US Quality Large Cap Index Fund (QLC) decreased its expense ratio from 0.32% to 0.25% as of July 11.

Multiple ETFs offered by Principal dropped their indexes to become actively managed during the past week. As of July 8, the Principal U.S. Small-Cap Multi-Factor ETF (PSC) ceased tracking the Nasdaq US Small Cap Select Leaders Index. And as of July 15, the Principal Healthcare Innovators ETF (BTEC) and the Principal Millennials ETF (GENY) dropped the NASDAQ U.S. Health Care Innovators Index and the NASDAQ Global Millennial Opportunity Index, respectively, with GENY also changing its name to the Principal Millennial Global Growth ETF.

Also on Friday, the Ecofin Digital Payments Infrastructure Fund (TPAY) changed its ticker to ETPA.

Finally, on July 29, the Absolute Core Strategy ETF (ABEQ) will change its name to the Absolute Select Value ETF.

Contact Heather Bell at [email protected]