The
Invesco Senior Loan ETF (BKLN) is seeing the second highest average daily volume in Invesco’s ETF lineup. What’s causing investors to flock to this senior debt ETF?
The pandemic put credit agencies on alert for more potential defaults during a weakened economy, but a new risk is emerging. Climate risk in the form of harsh winters throughout the U.S. could pose a problem for creditworthiness, which warrants the need for debt investors to be in senior loan position.
“Climate change has made the world a riskier place,” an International Monetary Fund blog article said. “The destruction wrought by heatwaves, droughts, hurricanes, and coastal flooding doesn’t stop with the toll on human lives and livelihoods it can also have deep consequences for a country’s finances.”
February 18, 2021
First Trust Advisors L.P., a leading exchange-traded fund provider and asset manager, announced on Thursday that it has launched a new actively managed ETF, the
First Trust TCW Emerging Market Debt ETF (NYSE Arca: EFIX). The fund seeks to provide a high total return from current income and capital appreciation by investing in emerging market debt. The portfolio is sub-advised and managed by TCW Investment Management Company LLC.
“We believe professional management for fixed income assets is more important than ever. This actively managed ETF provides another tool for investment advisors seeking to capitalize on opportunities in emerging markets fixed income by leveraging the best thinking of the world-class team at TCW,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
On Thursday, Wilshire Phoenix, a leader of innovation in the financial services industry, announced the
Wilshire wShares Enhanced Gold Trust (NYSE Arca: WGLD). WGLD tracks the Wilshire Gold Index, which seeks to outperform a stand-alone investment in gold and reduce its volatility without the use of any futures, leverage, or derivatives. The launch of WGLD marks significant innovation for commodities-based ETFs and the overall fund space.
“The industry constantly touts innovation but often disappoints by failing to deliver any meaningful new products for investors. In contrast, WGLD offers all investors immediate access to an entirely distinct strategy and structure transparently and efficiently,” said Bill Herrmann, managing partner at Wilshire Phoenix.
February 18, 2021
Bonds are integral components in any retirement portfolio. Corporate bonds can carry higher yields than domestic government debt.
When it comes to corporate bonds, passive index-based strategies are often the way to go for retirees. Consider the
USIG follows the ICE BofAML US Corporate Index and holds nearly 6,800 bonds, giving it one of the deepest benches in the investment-grade corporate bond fund category.
“Exchange-traded funds tracking indexes that are representative of the broad investment-grade corporate bond market are a solid option for exposure to this asset class,” writes Morningstar analyst Neal Kosciulek. “Portfolios that mimic the contours of this opportunity set and boast low fees have been difficult for active managers to beat. Over the 10 years through June 2020, just 40% of actively managed funds in the corporate bond Morningstar Category managed to survive and outperform the average of their passive peers.”
Hong Kong-listed equities are on fire this year, aiding ETFs which investors might not readily expect. The
ENTR tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).
The ETF allocates more than 28% of its weight to ex-US stocks, according to Morningstar data.
“Among her favorites are Autonomous Aerial Vehicles (AAV) maker Ehang, and FinTech company FUTU. Both have exceeded 150% YTD performance with explosive growth that she believes will propel them higher,” according to ERShares, citing COO and Chief Investment Strategist Eva Ados.