The U.S. ETF industry saw 22 new ETFs debut last week, which was the best one for launches across multiple months. The issuers launching funds include Capital Group, Direxion, First Trust, Invesco, NEOS, Neuberger Berman, newcomer Nightview Capital, PGIM, Strive, TCW and YieldMax.
First Trust rolled out three more ETFs during the week beyond its new “economic moat” fund. Those new funds included the FT Vest U.S. Equity Equal Weight Buffer ETF – June (RSJN), which was the issuer’s first defined outcome ETF based on the Invesco S&P 500 Equal Weight ETF (RSP). First Trust also launched the FT Vest U.S. Equity Buffer & Premium Income ETF – June (XIJN) and the FT Vest U.S. Equity Max Buffer ETF – June (JUNM).
XIJN invests in flexible exchange (FLEX) options that are tied to the performance of the SPDR S&P 500 Index Trust (SPY) and short-term U.S. Treasury securities, according to the prospectus. The fund does not experience any upside performance from price appreciation, though it can realize downside performance. XIJN aims to provide 7.36% in annualized income before fees while protecting against the first 10% of losses in the price performance of SPY. The fund has an expense ratio of 0.85% and lists on the Cboe BZX Exchange.
JUNM, meanwhile, tracks the price performance of SPY up to a cap of 9.08% while protecting against 100% of losses during the one-year outcome period. It has an expense ratio of 0.85% and lists on the Cboe BZX Exchange.
Beyond the Barrage of New ETFs
Although the number of launches is perhaps the biggest news, there were additional actions in the ETF space worthy of note.
Direxion announced the impending closures of three of its ETFs. The following funds will see their last day of trading on July 19:
- Direxion Hydrogen ETF (HJEN)
- Direxion Daily Global Clean Energy Bull 2X Shares (KLNE)
- Direxion Moonshot Innovators ETF (MOON)
Also during the week, the Columbia Emerging Markets Consumer ETF (ECON) changed its name to the Columbia Research Enhanced Emerging Economies ETF and its index from the Dow Jones Emerging Markets Consumer Titans Index to the Beta Advantage Research Enhanced Solactive Emerging Economies Index. At the same time, the FMC Excelsior Focus Equity ETF (FMCX) changed its name to the FM Focus Equity ETF.
The FT Vest International Equity Buffer ETF – June (YJUN) changed its name to the FT Vest International Equity Moderate Buffer ETF as of July 1. The issuer has been converting all the fund names in the series to include the word “Moderate.”
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