[07/25/23] New Funds Target More Obscure Investments

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

While bitcoin and megacap tech stocks have hogged the spotlight this year, last week two new ETFs launched focusing on assets that haven’t garnered nearly as much attention.

On the equity side of things, active exchange-traded fund issuer Avantis Investments launched the Avantis International Small Cap Equity ETF (AVDS) on the exact opposite side of the stock-investing spectrum. It invests in small cap firms outside the U.S. While evidence has come out against the existence of a size factor in investing, Avantis believes opportunities for other factors such as value and quality are bigger in the small cap world.

For fixed income investors, Panagram Structured Asset Management launched its second ETF, the Panagram AAA CLO ETF (CLOX), which allows everyday investors to invest in collateralized loan obligations, basically bundled loans to smaller businesses unable to easily use the broader bond market. Unlike the similarly named collateralized debt obligations, which were an asset center of the global financial crisis, CLOs have a much better record of solvency.

However, until recently, the liquidity in the CLO market wasn’t nearly high enough for retail investors to easily access it. As the volume of CLOs has risen in the last decade, it’s become liquid enough for the average investor willing to stomach a more complex investment.

A stock sector besides tech that’s been seeing huge gains this year is homebuilders, with the?iShares U.S. Home Construction ETF (ITB)?outpacing the?Select Sector SPDR Fund (XLK), a tech sector benchmark fund, in year-to-date returns.

Below is a roundup of the key developments in the ETF industry during the week ending July 21, 2023:

2 NightShares ETFs Close After Struggling to Gain Traction

CEO said firm got ‘colossally unlucky’ with timing of fund launches.

New ETF Says It Protects Against All Market Losses

Innovator buffer fund takes aim at investors’ cash hoard with annuity-like characteristics.

Panagram Again Focuses on Debt Securities With Second ETF

Active fund issued as growth in collateralized loan obligations brings fresh liquidity to market.

Avantis Launches Small Cap International Stock ETF

The issuer hopes to bring investors to the opposite end of the large cap market rally.

Odds & Ends: ‘Night Effect’ Funds Close on Dim Returns

Plus, ETF inflows spiked in June, more than doubling May’s numbers.

FEATURED FUND

iShares U.S. Home Construction ETF (ITB)

ITB tracks a market-cap-weighted index of companies involved in the production and sale of materials used in home construction.

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PODCAST

On the latest episode of?Exchange Traded Fridays, Kevin T. Carter, founder and chief investment officer of EMQQ Global, sits down with?etf.com's Senior Analyst Sumit Roy to discuss the outlook for emerging markets and why he thinks India and China offer compelling investment opportunities today.?Listen Now

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VIDEO

Collateralized debt obligations earned a bad reputation due to their role in the global financial crisis. That shouldn’t stop investors from considering collateralized loan obligations, a type of CDO that offers investors high yields and protection against downside risks. That’s according to Fran Rodilosso, head of fixed income ETF portfolio management for VanEck. On this episode of?Talk ETFs, he sits down with?etf.com's Senior Analyst Sumit Roy to discuss his firm’s new CLO exchange-traded fund.?Watch Now | YouTube

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