Smart-Beta Water ETF Launched
Summit Water Capital Advisors in La Jolla, Calif., has launched a smart-beta ETF that offers exposure to globally listed water utilities and industrials equities.
The Summit Water Infrastructure Multifactor ETF (WTRX) trades on NYSE Arca and tracks a proprietary index created in collaboration with Chicago-based Zacks Index Services.
The index includes 30 to 50 companies that dedicate a significant portion of their business to the global water industry. The holdings are selected using a three-factor model that ranks them based on Summit’s research, then weights them based on dividend yield rather than market capitalization to further enhance the yield of the index.
WTRX has a total expense ratio of 0.80%.
iSectors Rolls Out Liquid-Alts ETF
Appleton, Wis.-based iSectors LLC has rolled out an actively managed liquid alternative ETF.
The iSectors Post-MPT Growth ETF (PMPT) trades on the Nasdaq and has a total expense ratio of 1.55%. The fund uses iSectors’ proprietary flagship investment model, the iSectors Post-MPT Growth Allocation, which aims to improve upon the principles of modern portfolio theory by applying modern research and technology.
iSectors’ strategy uses monthly changes in more than a dozen economic and market factors, including interest rates, money supply, inflation and unemployment rates, to estimate an optimal portfolio allocation and maneuver portfolios as markets and the economy change, investing in nine asset classes to ensure diversification.
Direxion Offers Unlevered Inverse Euro Financials ETF
With a strategy that seems tailored to any future Brexit-related fallout or any upheaval caused by potentially contentious elections on the docket on the continent, Milwaukee-based Direxion has created a new European financials inverse ETF.
The Direxion Daily European Financials Bear 1X Shares (EUFS) seeks 100% of the inverse performance of the MSCI Europe Financials Index.
The product, which trades on NYSE Arca, is intended to help tactical managers hedge against downturns in the MSCI Financials Index and gives investors an unleveraged alternative to Direxion’s existing leveraged ETF that also tracks the index’s inverse performance.