WisdomTree Debuts PutWrite Strategy ETF
New York-based WisdomTree has launched an options-driven ETF.

The CBOE S&P 500 PutWrite Strategy Fund will attempt to provide investors with a level of volatility protection while enabling them to maintain or enhance returns. 

The new fund will attempt to follow the CBOE S&P 500 PutWrite Index, which has historically had a lower standard deviation than the S&P 500 index. From June 30, 2007, to December 31, 2015, the index captured 97% of the S&P 500’s return but only 77% of the volatility.

“Put writing has been used by investors for decades as a solution to potentially increase the yield and lower the volatility of equity returns over various market cycles,” said Luciano Siracusano, WisdomTree’s chief investment strategist. “We’ve teamed up with the Chicago Board Options Exchange [CBOE], a leader in options investing, to provide access to an index developed with a live track record dating to 2007 that has shown lower volatility over time, relative to the S&P 500.”

Since 2007, the PutWrite Index outperformed 95% of the time when the S&P 500 experienced a daily negative return.

The new fund will invest in one- and three-month Treasury bills and write S&P 500 index put options. The number of options sold will be chosen to attempt to ensure full collateralization, and the amount of cash invested in Treasury bills will be set to cover any potential losses from writing the puts—thus, ideally, there will be no leverage in the writing of the puts.

The fund will roll options monthly.

 

First American Launching Retail Money Market Fund
Minneapolis-based First American will launch the First American Retail Prime Obligations Fund, a money market mutual fund.

The new fund will replace the current First American Prime Obligations Fund, which will be renamed the First American Institutional Prime Obligations Fund. Investors in the current fund will be able to exchange into the new fund at the time of the fund’s launch.

The fund will attempt to maintain a stable $1 per share net asset value. It is scheduled to launch on July 18.

First American will also designate its First American Tax Free Obligations Fund for retail investors.

 

Jefferson National Offers Defined Outcome Strategy
Louisville, Ky.-based Jefferson National has introduced a “defined outcome” ’40 Act fund within a tax-deferred wrapper.

The JNF Exceed Defined Shield Index Portfolio will track the performance of the Nasdaq Exceed Defined Protection Index, with exposure to the S&P 500, while attempting to limit losses to no more than 12.5% on an annualized basis and gains at an annualized maximum of 15%.

The tax-deferred version of the fund will be exclusively offered through Jefferson National’s Monument Advisor, a flat-fee investment-only variable annuity.

The retail version of the fund is now available on multiple platforms.

New York-based Exceed Investments will manage the new fund.

 

RidgeWorth Introduces Infrastructure Mutual Fund
Atlanta-based RidgeWorth Investments has announced a fund focused on natural resources and industry.

The RidgeWorth Capital Innovations Global Resources and Infrastructure Fund invests in companies focused in the agribusiness, timber and infrastructure industries.

The fund will be sub-advised by Capital Innovations, a Pewaukee, Wis.-based asset manager.

The fund’s managers will attempt to generate income by utilizing stocks, real estate investment trusts, master limited partnerships and real assets.

“As income has decreased from traditional sources, we feel it’s essential to seek higher yield through a broader global real asset strategy,” says Michael D. Underhill, founder and chief investment officer of Capital Innovations.

 

Hartford Rolls Out Sustainability-Focused Fund
Radnor, Pa.-based Hartford Funds has launched the Hartford Environmental Opportunities Fund.

The fund will invest in companies promoting environmental sustainability, specifically those addressing challenges like low-carbon electricity, energy efficiency, low-carbon transportation or resource management.

“The Hartford Environmental Opportunities Fund is designed to invest in companies that we believe provide a positive impact on our environment while also aiming to deliver positive returns and value to our fund shareholders,” said Anita Baldwin, vice president and managing director of Hartford Funds. “It aligns directly with our human-centric investing philosophy, responding to what today’s investors want and need.”

Radnor-based Wellington Management will sub-advise the new fund.

 

Janus Launches Two Smart Beta ETFs

Denver-based Janus Capital Group joined the burgeoning field of smart beta managers with the launch of two ETFs last month.

The Janus Small Cap Growth Alpha ETF and the Janus Small/Mid Cap Growth Alpha ETF are the first two funds Janus has branded as Smart Growth ETFs.

The ETFs will attempt to follow proprietary indexes, which evaluate every eligible company on 10 fundamental factors. After identifying companies meeting the funds’ criteria, Janus’s methodology selects the top 10% while attempting to remain diversified across sectors.

The funds are Janus’s first ETF launches since its acquisition of VS Holdings Inc., the parent company of VelocityShares.