Odds & Ends: JPMorgan Debuts 3 Treasury ETFs

There were eight launches during the week, but closures also featured prominently.

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Reviewed by: Lisa Barr
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Edited by: Lisa Barr

During the week, there were eight launches, with the most notable among them being three JPMorgan BetaBuilders ETFs covering different slices of the Treasury market.  

JPMorgan Chase rolled out the three funds covering short-, intermediate- and long-term Treasury debt, respectively, on Thursday as follows: 

The three ETFs all list on Cboe Global Markets and have expense ratios of 0.07%. Each tracks an index from ICE Data Indices.  

That same day, Toroso’s white label arm Tidal rolled out the Tactical Advantage ETF (FDAT). The actively managed ETF-of-ETFs holds a combination of U.S. equity ETFs and high-yield bond ETFs as well as cash and cash equivalents. It uses an in-house strategy that relies on a combination of technical and macroeconomic indicators to determine its holdings. The fund will typically hold 10-15 ETFs, the prospectus says.  

FDAT has an expense ratio of 0.74% and lists on the NYSE Arca.  

Wednesday saw the launch of the Volatility Shares -1x Short VIX Mid-Term Futures Strategy ETF (ZIVB) from Volatility Shares. The fund tracks the S&P 500 VIX Mid-Term Futures Inverse Daily Index and joins two other similar products. It has an expense ratio of 1.35% and lists on Cboe Global Markets. 

On Tuesday, Beacon Capital Management rolled out two funds. The Beacon Tactical Risk ETF (BTR) and the Beacon Selective Risk ETF (BSR). Both have similar core equity holdings in the form of ETFs covering 11 sectors, with sectors weighted equally, but they have different responses as market risk increases. BTR shifts into fixed income ETFs when the benchmark for its equity portfolio declines more than 10% from its high, and back into equity ETFs when the benchmark for its equity portfolio rises 15%-25% from its low, its prospectus says. 

Meanwhile, BSR moves a sector exposure into fixed income ETFs once it shows signs of falling into a bear market, shifting back into the equity sector ETFs only once the sector is demonstrating strength again, according to the fund document.  

Both funds have expense ratios of 1.10% and list on the NYSE Arca. 

Closures 

During the week, the ETF industry was surprised by the announcement that Barclays would be redeeming all but five of the ETNs in its iPath family in June. However, the pending closure of the UPHOLDINGS Compound Kings ETF (KNGS) was also announced. The fund is scheduled for liquidation on or around May 19.  

And as of today, eight Direxion ETFs will cease to trade after the market close: 

Other Changes 

There are several changes that took place during the week or are scheduled for the future.  

On Thursday, two ETFs from iShares changed their indexes. The iShares Global Energy ETF (IXC) changed its index from the S&P Global 1200 Energy Index to the S&P Global 1200 Energy 4.5/22.5/45 Capped Index, while the iShares Global Tech ETF (IXN) changed its index from the S&P Global 1200 Information Technology Index to the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. 

Three funds have share splits ahead of them. As of April 28, the Roundhill MEME ETF (MEME) and the Roundhill Cannabis ETF (WEED) will both undergo 1-for-5 reverse share splits.  

As of May 5, the VanEck Semiconductor ETF (SMH) will undergo a 2-for-1 forward share split.  

 

Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.