The great hedge fund fee debate is arguably asset management’s Gordian Knot – on the surface an intractable problem, but one that may have a relatively simple solution for allocators and institutions.
New York-based ASYMmetric ETFs has listed its debut product, a hedge fund-style ETF targeting an absolute return profile within US large-cap equities.
Krane Funds Advisors has teamed up with Mount Lucas Management to launch an index-based ETF providing exposure to a managed futures strategy across equities, currencies, and global bond markets.
Accelerate Financial Technologies has launched a new actively managed ETF in Canada providing diversified exposure to multiple alternative investment strategies.
JP Morgan Asset Management has announced changes to its US ETF product suite including the introduction of its first actively managed equity ETFs and the closure of ETFs providing hedge fund-style returns. Bryon Lake, Head of Americas ETF Distribution at JP Morgan Asset Management, said, “We regularly monitor and evaluate our product line-up as market and economic conditions evolve. This process allows us to optimize and scale our product offerings to better meet client objectives and market demand.”
Little Harbor Advisors has launched a new actively managed ETF on Cboe BZX that pursues an absolute return strategy based on volatility expectations within the US large-cap equity universe. The LHA Market State Alpha Seeker ETF (MSVX US) is sub-advised by Thompson Capital Management and has been seeded with $25 million. Jeff Landle, Chief Investment Officer at Little Harbor Advisors, said, “We had been aware of Thompson Capital Management’s volatility strategy for some time and believe if ever there was a period to pay attention to volatility it is today.”
New York-based Water Island Capital has become the latest entrant to the ETF industry with the launch of the AltShares Merger Arbitrage ETF (ARB US) on NYSE Arca. The fund harnesses the firm’s 20-years of experience in managing event-driven portfolios to provide passively managed exposure to a global merger arbitrage investment strategy. John S. Orrico, Founder and CIO of Water Island Capital, said, “We are pleased to bring Water Island’s time-tested approach to merger arbitrage investing to those interested in accessing this strategy through a passively managed ETF.”
First Trust Advisors has launched a new actively managed ETF in the US providing returns similar to those attributable to hedge funds pursuing merger arbitrage strategies. The First Trust Merger Arbitrage ETF (MARB US) has listed on NYSE Arca and comes with an expense ratio of 1.94%. Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust, commented, “Since this ETF is expected to have low correlations to both stocks and bonds, we believe it will be an effective tool for investment professionals seeking to further diversify their clients’ portfolios.”
Canadian asset manager CI Investments has launched a suite of three actively managed ETFs on Toronto Stock Exchange providing exposure to liquid alternative investment strategies. Kurt MacAlpine, Chief Executive Officer of CI Financial, commented, “Our liquid alternatives are sophisticated and innovative strategies that offer distinct benefits for investor portfolios, including the potential for enhanced returns, capital preservation, and reduced correlation to traditional asset classes.”
Paris-headquartered investment platform iM Global Partner and New York-based investment manager Dynamic Beta Investments have partnered on their second ETF: the iM DBi Hedge Strategy ETF (DBEH US). The fund is actively managed and provides exposure to a long/short global equity strategy based on the asset allocations of leading hedge funds. Andrew Beer, Managing Member of Dynamic Beta Investments, said, “The iM DBi Hedge Strategy ETF exemplifies Dynamic Beta’s mission: provide investors with innovative alternative investment solutions with low fees and daily liquidity and minimize single manager risk.”