Vanguard Expands Dividend, Fixed-Income ETFs

Valley Forge, Pa.-based Vanguard Asset Management has introduced two international dividend ETFs.

The Vanguard International High Dividend Yield Index Fund (VYMI) and the Vanguard International Dividend Appreciation Index Fund (VIGI) will trade on the Nasdaq.

VYMI tracks the FTSE All-World ex-US High Dividend Yield Index and carries a 30 basis point expense ratio, while VIGI tracks the Nasdaq International Dividend Achievers Elect Index and carries a 25 basis point expense ratio.

Vanguard has also introduced four fixed-income ETFs that will list on the London Stock Exchange.

The Vanguard EUR Corporate Bond UCITS ETF (VECP), the Vanguard EUR Eurozone Government Bond UCITS ETF (VETY), the Vanguard USD Corporate Bond UCITS ETF (VUCP) and the Vanguard USD Treasury Bond UCITS ETF (VUTY) all carry expense ratios of 12 basis points.

The new funds bring Vanguard’s U.K. ETF lineup to 21 and build out the firm’s fixed-income offerings to five ETFs.

 

Legg Mason Enters Smart Beta ETF Space
Baltimore-based Legg Mason has announced its first four ETFs.

The Legg Mason US Diversified Core ETF, the Legg Mason Developed ex-US Diversified Core ETF, the Legg Mason Emerging Markets Diversified Core ETF and the Legg Mason Low Volatility High Dividend ETF give investors geographically diversified, smart beta fund options.

The ETFs are governed by a methodology from Legg Mason affiliate QS Investors that attempts to provide a better risk profile than market capitalization-weighted holdings. As a result, the international funds may provide exposure to a more geographically diverse assortment of equities rather than overexposure to countries like the U.K. or Japan, potentially alleviating some country risk.

 

Guggenheim Launches Total Return Bond ETF

Chicago-based Guggenheim Investments has introduced the Guggenheim Total Return Bond ETF, which will trade on the New York Stock Exchange under the tracker GTO.

The actively managed ETF invests primarily in investment-grade fixed-income securities across multiple sectors.

GTO is the second actively managed ETF launched by Guggenheim.

Fund managers will use quantitative and qualitative processes to identify market opportunities and manage risk, screening investments for duration, relative sector value, credit analysis, information premiums and best-trade execution. Both top-down macro and bottom-up fundamental analyses are used.

The fund will have ongoing management fees of 50 basis points per annum.

 

Direxion Rolls Out Lightly Leveraged Products
Milwaukee-based Direxion has announced two new lightly leveraged mutual funds.

The Direxion Monthly Nasdaq-100 Bull 1.25X Fund (DXNLX) seeks monthly investment results of 125% of the performance of the Nasdaq-100 index.

The Direxion Monthly Nasdaq-100 Bear 1.25X Fund (DXNSX) seeks monthly investment results of 125% of the inverse of the performance of the Nasdaq-100.

“We continue to seek ways for investors to gain exposure to different indexes and asset classes that allow them to utilize various leverage points,” said Ed Egilinsky, managing director at Direxion. 

Direxion warns that the new funds are intended for active, educated investors. 

 

Goldman Sachs Adds To ActiveBeta ETF Suite
New York-based Goldman Sachs Asset Management has expanded its ActiveBeta suite of ETFs with two new funds.

The Goldman Sachs ActiveBeta Europe Equity ETF (GSEU) and the Goldman Sachs ActiveBeta Japan Equity ETF (GSJY) will trade on the New York Stock Exchange.

“We see continued investor interest in our existing ActiveBeta ETFs, and with the launch of GSEU and GSJY, we are even better equipped to deliver investors diversified core exposure to these key markets,” said Michael Crinieri, GSAM’s global head of ETF strategies. 

The funds attempt to provide additional exposure to developed-market equities by tracking Goldman Sachs’ proprietary
ActiveBeta indices. Both funds carry a 25 basis point expense ratio.

 

Nationwide Announces Emerging Market Bond Debt Fund
Columbus, Ohio-based Nationwide has introduced a new international fixed-income mutual fund.

The Nationwide Emerging Markets Debt Fund will offer exposure to emerging markets debt. From hard currency to local currency, and from sovereign debt to corporates, the fund will attempt to find the best relative value opportunities within the emerging debt markets.

The fund will be subadvised by Standard Life Investments. Based in Edinburgh, Scotland, Standard Life manages more than $379 billion, $154 billion in fixed income assets.

Nationwide now provides 118 funds with approximately $58.5 billion in assets to its advisor partners.