Home Most Popular Revolutionizing the ETF Landscape: DWS Makes Mark With New Active Fund

Revolutionizing the ETF Landscape: DWS Makes Mark With New Active Fund

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As the week came to a close on March 1, the ETF market witnessed a flurry of activity with the introduction of 17 new funds. Among them were offerings from big players like Fidelity, First Trust, Innovator, AllianzIM, YieldMax, Miller Value Partners, and the up-and-coming Regan Capital.

However, stealing the spotlight was DWS with the launch of its maiden actively managed ETF, the Xtrackers RREEF Global Natural Resources ETF (NRES), on the Nasdaq exchange. Sporting a net expense ratio of 0.45%, the fund sets a new benchmark in DWS’s lineup.

The NRES fund is strategically positioned to invest in companies spanning metals, energy, agriculture, and paper/forestry industries. The asset allocation for NRES is meticulously determined by DWS’s Liquid Real Assets team, with day-to-day stock selection entrusted to skilled fund managers.

John Vojticek, Head of Liquid Real Assets at DWS, remarked, “Following the post-COVID inflationary period, investor portfolios were caught off guard due to a lack of inflation-resistant assets. Seeing the persistent expansion of government deficits and debts, we view natural resource equities as a pertinent avenue to preserve capital during prolonged phases of modest price escalations.”

New Entrants: Roundhill & Swan Global Unveil Exciting Funds

Roundhill made waves beyond its existing $160 million Roundhill Magnificent Seven ETF (MAGS) with the introduction of two new players – the Roundhill Daily Inverse Magnificent Seven ETF (MAGQ) and the Roundhill Daily 2X Long Magnificent Seven ETF (MAGX). With an expense ratio of 0.95%, both funds are now available for trading on the Nasdaq.

While MAGQ offers inverse exposure at a 1x rate to the stocks of the Magnificent Seven, MAGX seeks to deliver twice the performance of the seven major equities. These stellar players include Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., and Tesla Inc.

Simultaneously, Swan Global Investments introduced the actively managed Swan Enhanced Dividend Income ETF (SCLZ). The fund managers leverage the components of the O’Shares Focused Quality Dividend Index as their pool for picking stocks. Further, once the holdings are set, they engage in writing covered calls on them whenever the situation warrants it. The fund boasts an expense ratio of 0.85% and is listed on the Cboe BZX Exchange.

Innovative Offerings: Summit Global & PGIM Step Up With 4 New ETFs

Summit Global Investments seized the market’s attention by rolling out two new actively managed funds on the Nasdaq exchange. The SGI Enhanced Core ETF (USDX) has a primary objective of offering investors income through strategic investments in high-yield, quality-centric money market vehicles. It also dabbles in ultra-short-term put and call options strategies.

Concurrently, the SGI Global Enhanced Income ETF (GINX) stays true to its income-focused strategy through an options overlay on a portfolio encompassing U.S.-listed global companies that boast dividend-paying capabilities. Both funds tout expense ratios of 0.98%.

PGIM made its presence felt by expanding its buffer ETF lineup with the arrival of the PGIM US Large-Cap Buffer 12 ETF – March (MRCP) and the PGIM US Large-Cap Buffer 20 ETF – March (PBMR). Both offerings carry an expense ratio of 0.50% and are listed on the Cboe BZX Exchange.

These funds utilize FLEX options akin to other buffer funds to mirror the price performance of the SPDR S&P 500 ETF Trust (SPY) up to a predefined cap. They also safeguard against potential downside losses, with MRCP offering a 12% buffer against losses and allowing for upside gains up to a cap of 15.81%, while PBMR maintains a 20% downside buffer and caps upside performance at 12.65%.

Closures Send Shockwaves: Xtrackers and KraneShares Announce Significant Changes

On the downside, the ETF landscape witnessed a barrage of closings during the week, with several funds concluding their operations and more announcements looming on the horizon. Notable closures included:

– Six Xtrackers ETFs by DWS slated for their final trading day on March 13.

– Four KraneShares ETFs signaling an end to trading after market hours on March 14.

Shifting Tides: Fidelity Adopts Fresh Tactics

In an eventful week, Fidelity didn’t just welcome two new funds to its repertoire but also underwent transformative changes to three of its existing funds. The financial giant continues to make strategic moves to recalibrate its ETF lineup to meet evolving market demands.

Finally, one particularly interesting shift was the renaming of the Clough Long/Short Equity ETF (CBLS) to the Clough Hedged Equity ETF, reflecting a nuanced tweak in branding that encapsulates its core investment strategy.

For more news, information, and analysis, visit VettaFi | ETF Trends.

 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.