Sunday, February 28, 2021

New ETF filed: SonicShares Airlines, Hotels, Cruise Lines ETF

SonicShares Airlines, Hotels, Cruise Lines ETF
Ticker: TRYP
Exchange: NYSE Arca
Expense ratio: 0.75%

Original filing date: February 25, 2021
Effective date: May 11, 2021
Listing Date: May 13, 2021

CUSIP886364728
Active: No

Index: Solactive Airlines, Hotels, Cruise Lines Index
 
Investment Objective:
Track the performance, before fees and expenses, of the Solactive Airlines, Hotels, Cruise Lines Index
 
Investment Strategy / Index Methodology:
Companies can be based or listed anywhere in the world, but must have a minimum of $2 billion in market cap.

To be included in the index, companies must derive at least 50% of revenues from air services or cruise line services, or hotel services, broadly.

Here's an index methodology twist and where it gets interesting:
  • Top 3 companies in each industry get allocated 4.5% each, for a total of 40.5% of the index.
  • The remainder of the index (50.5%) gets allocated among the remaining eligible companies, weighted by market capitalization.
 
Adviser: Toroso Investments, LLC
Sub-Adviser / License owner of brand name "SonicShares": Lucania Investments LLC

Administrator: Tidal ETF Services LLC
Fund accountant: U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services
Transfer agent: U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services 
Custodian: U.S. Bank National Association
Distributor: Foreside Fund Services, LLC
Legal counsel: Godfrey & Kahn, S.C.
External accounting: Tait, Weller & Baker LLP
Compliance: Cipperman Compliance Services, LLC
 

Prospectus is here.
Final prospectus is here.





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Wednesday, February 24, 2021

American Century launches income themed ETFs

HEARSAY Summary and Analysis
Second and third launch for American Century already in 2021, following the launch in January of their Low Vol ETF, LVOL. This brings their total number of ETFs to 12 and total AUM is $1.5B.

American Century has leveraged their mutual fund experience to fill out their ETF lineup in a deliberate manner, and continuing to off the basic add-ons to a core portfolio. QCON and QPFF offer the esoteric yet exotic instruments to the existing quality, focused, and sustainable stable of ETFs. 

QCON and QPFF are welcome income themed members to the American Century family. Under the well-seasoned ETF PM, Rene Casis, formerly of iShares, these ETFs are sure to be well taken care of.




American Century Quality Convertible Securities ETF
Ticker: QCON
Exchange: Cboe BZX
Expense ratio: 0.32%
Original filing date: September 4, 2020
Effective date: November 18, 2020
Listing Date: February 19, 2021
CUSIP: 025072521
Active: Yes
Index (Benchmark if Actively-Managed): ICE BofA Convertible Index

Investment Objective:
The fund seeks total return.
 
Investment Strategy:
Select individual securities utilizing a quantitative and fundamental investment process informed by fundamental and technical measures such as sales or earnings growth, profitability, leverage, balance sheet strength, price momentum relative to peers, and valuation and yield relative to other convertible securities.

Constituents: 135
 
Adviser: American Century Investment Management, Inc.
Short Prospectus is here.
Full Prospectus is here.





American Century Quality Preferred ETF
Ticker: QPFF
Exchange: Cboe BZX
Expense ratio: 0.32%
Original filing date: September 4, 2020
Effective date: November 18, 2020
Listing Date: February 19, 2021
CUSIP: 025072539
Active: Yes
Index (Benchmark if Actively-Managed): ICE Exchange-Listed Preferred & Hybrid Securities Index
 
Investment Objective:
The fund seeks current income and capital appreciation.
 
Investment Strategy:
Preferred securities in which the fund may invest include preferred stock, hybrid preferred securities that have characteristics similar to both preferred stock and debt securities, floating rate preferred securities, junior subordinated debt, senior unsecured debt obligations denominated in $25 par amounts (senior notes or baby bonds), re-packaged preferreds, and convertible securities.

The portfolio managers screen securities utilizing a quantitative and fundamental investment process informed by fundamental and technical measures such as liquidity, credit risk, size, quality, and momentum. The strategy screens for profitability and leverage and selects issuers and issues based on favorable quality, yield and valuation metrics.

Constituents: 150
 
Adviser: American Century Investment Management, Inc.
Short Prospectus is here.
Full Prospectus is here.





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QCON

Principal Investment Strategies

Under normal market conditions, the portfolio managers will invest at least 80% of the fund’s net assets, plus any borrowings for investment purposes, in convertible securities. Convertible securities have characteristics similar to both bonds and common stocks and typically consist of debt securities and preferred stocks that may be converted into or exchanged for a prescribed amount of common stock or other equity security, of the same or a different issuer, within a particular time period, at a specified price.

The portfolio managers select securities using a quantitative and fundamental investment process. They first screen the investment universe for liquidity and then select individual securities utilizing a quantitative and fundamental investment process informed by fundamental and technical measures such as sales or earnings growth, profitability, leverage, balance sheet strength, price momentum relative to peers, and valuation and yield relative to other convertible securities. Portfolio holdings are weighted to achieve the optimal balance between risk and return by considering each portfolio security’s fundamental scores, benchmark weight, and equity sensitivity.

The fund is nondiversified. The fund may invest in high-yield securities (also referred to as “junk bonds”). The fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. This may cause higher transaction costs and may affect performance. It may also result in the realization and distribution of capital gains.

The fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics.


QPFF

Principal Investment Strategies

Under normal market conditions, the portfolio managers will invest at least 80% of the fund’s net assets, plus any borrowings for investment purposes, in preferred securities issued by U.S. and non-U.S. companies. Preferred securities in which the fund may invest include preferred stock, hybrid preferred securities that have characteristics similar to both preferred stock and debt securities, floating rate preferred securities, junior subordinated debt, senior unsecured debt obligations denominated in $25 par amounts (senior notes or baby bonds), re-packaged preferreds, and convertible securities.

The portfolio managers screen securities utilizing a quantitative and fundamental investment process informed by fundamental and technical measures such as liquidity, credit risk, size, quality, and momentum. The strategy screens for profitability and leverage and selects issuers and issues based on favorable quality, yield and valuation metrics.

The fund is nondiversified. The fund concentrates its investments in the group of industries that comprise the financials sector. The fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. This may cause higher transaction costs and may affect performance. It may also result in the realization and distribution of capital gains. The fund may invest in securities of any duration or maturity.

The fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics.


Wednesday, February 17, 2021

TransAmerica files for three ETFs adding to their roster of DeltaShares, targeting launch in May

DeltaShares Morningstar ESG US Dividend ETF
DeltaShares Morningstar ESG International Dividend ETF
DeltaShares Morningstar ESG Emerging Markets Dividend ETF

Summary & Analysis
Hearsay Research:
The three funds track Morningstar indices that screen stocks that:
1. Pay dividends
2. Have low ESG and "Controversy" scores as determined by Sustainalytics, a Morningstar company
3. Do not derive more than 50% of revenues from tobacco or weapons
4. Have a sustainable competitive advantage


Hearsay Analysis:
Transamerica is rounding out their lineup of managed risk ETFs with super-jacked modular dividend-focused ETFs that cover the world. They like a super meal with all the screens and filters.

Besides the focus on dividends, the ETFs offer an ESG screen and sustainable competitive advantage across the US, developed world, and emerging markets. These features are all good and well, but ultimately it's performance that will dictate the success of these funds in asset gathering.


Tickers: TBD 

Exchange: NYSE Arca

Expense ratio: TBD

Original filing date: February 12, 2021

Effective date: April 28, 2021

Listing Date: May 2021

CUSIP: TBD

Active: No

Indexes:
Morningstar® US Sustainability Dividend Yield Focus IndexSM
Morningstar® Developed Markets ex-US Sustainability Dividend Yield Focus Index
Morningstar® Emerging Markets Sustainability Dividend Yield Focus Index



Investment Objective:

Seeks to track the investment results, before fees and expenses, of their respective indices.

 

Investment Strategy:






Constituents

 

Adviser: Transamerica Asset Management, Inc.

Sub-Adviser: Geode Capital Management, LLC

 

Prospectus is here.




Existing Transamerica ETFs:
DMRL DeltaShares S&P 500 Managed Risk ETF
DMRM DeltaShares S&P 400 Managed Risk ETF
DMRS DeltaShares S&P 600 Managed Risk ETF
DMRI DeltaShares S&P International Managed Risk ETF
DMRE DeltaShares S&P EM 100 & Managed Risk ETF









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DeltaShares Morningstar ESG US Dividend ETF


THE FUND’S PRINCIPAL INVESTMENT STRATEGY

Under normal market conditions, the DeltaShares® Morningstar ESG US Dividend ETF (the “fund”) invests a substantial portion of its assets in securities comprising the Morningstar® US Sustainability Dividend Yield Focus IndexSM (the “Underlying Index”). Under normal circumstances, the fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying securities of US market companies (as defined by the Index Provider).

 

The Underlying Index is designed to provide exposure to high-yielding, qualified-dividend-paying US companies that exhibit superior quality and financial health and that score highly on sustainable-investing criteria. The Underlying Index is a subset of the Morningstar® US Market IndexSM (the “Parent Index”), an index designed to track the US equity market. The Underlying Index first screens the companies in the Parent Index for eligibility. To be eligible for inclusion in the Underlying Index:

 

  

First, a company must pay qualified-dividends. A qualified dividend is generally taxable as long-term capital gains rates rather than ordinary income rates.

 

  

Second, a company must have a current environmental, social and governance (“ESG”) and controversy score (the “controversy score”), as determined by Sustainalytics, a Morningstar company and independent provider of ESG and corporate governance research and ratings. A company’s controversy score measures the degree to which newsworthy events involving the company may negatively impact the environment, society and the company’s business prospects, as well as the quality of the company’s efforts to manage and/or mitigate those negative impacts. Companies assigned the highest controversy score are not eligible for inclusion in the Underlying Index.

 

  

Third, a company must meet the following product involvement screens: (i) must not derive more than 50% of its revenue from involvement in tobacco products, and (ii) must not have involvement in the production of controversial weapons.

 

  

Fourth, a company must possess a sustainable competitive advantage in the market, as determined by the Index Provider (defined below).

After meeting the eligibility screens, the remaining companies are then ranked based on trailing 12-month dividend yield. The Underlying Index next targets an overall Morningstar Five Globe Sustainability Rating, which indicates low portfolio-level risk from ESG factors compared to the Fund’s Morningstar category, as determined by Morningstar. If the remaining companies, as a group, do not meet this rating requirement, companies in the bottom 25% of controversy scores are removed. If the resulting group of companies continues to not meet the rating requirement, then the next bottom 5% of companies are removed. The process is repeated until either the remaining group of companies meets the Five Globe Sustainability Rating or the bottom 50% of eligible companies are removed. The top 50 remaining companies based on trailing 12-month dividend yield are then chosen for inclusion in the Underlying Index.

The Underlying Index constituents are weighted according to the total qualified dividends paid during the past 12 months, with a maximum individual constituent weight of 5%, and a maximum sector weight of the lesser of 40% or 5 times that of the sector’s weight in the Parent Index. As of December 31, 2020, the market capitalizations of companies included in the Underlying Index were between $     billion and $     billion. The Underlying Index is reconstituted semi-annually in June and December. In addition, in March and September the controversy score and product involvement screens are applied and existing constituents failing those screens are deleted from the Underlying Index.

Under normal circumstances, in seeking to track the performance of the Underlying Index, the fund employs a replication strategy, which means the fund invests in substantially all of the securities represented in the Underlying Index in approximately the same proportions as the Underlying Index. The fund may also employ a sampling strategy when determined by the fund’s sub-adviser, Geode Capital Management, LLC (the “Sub-Adviser”), to be in the best interest of the fund in pursuing its investment objective. A sampling strategy means that the fund purchases a subset of the securities in the Underlying Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Underlying Index. The quantity of holdings in the fund will be based on a number of factors, including asset size of the fund.

The Underlying Index was developed and is sponsored by Morningstar® Indexes (the “Index Provider”), which is not affiliated with the fund, the Investment Manager or the Sub-Adviser. The Underlying Index is owned, calculated, and controlled by the Index Provider in its sole discretion. The Index Provider determines the composition of the Underlying Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Underlying Index. The Investment Manager, Sub-Adviser and their respective affiliates do not have the ability to select Underlying Index components or change the Underlying Index methodology.

 



DeltaShares Morningstar ESG International Dividend ETF


THE FUND’S PRINCIPAL INVESTMENT STRATEGY

Under normal market conditions, the DeltaShares® Morningstar ESG International Dividend ETF (the “fund”) invests a substantial portion of its assets in securities comprising the Morningstar® Developed Markets ex-US Sustainability Dividend Yield Focus IndexSM (the “Underlying Index”) and depositary receipts based on component securities in the Underlying Index (or, in the case of depositary receipts which themselves are component securities, underlying stocks in respect of such depositary receipts) Under normal circumstances, the fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying securities.

The Underlying Index is designed to provide exposure to high-yielding, qualified-dividend-paying companies in developed markets (excluding the United States) that exhibit superior quality and financial health and that score highly on sustainable-investing criteria. The Underlying Index is a subset of the Morningstar® Developed Markets ex-US IndexSM (the “Parent Index”), an index designed to track the developed market (excluding the United States) equity market. The Underlying Index first screens the companies in the Parent Index for eligibility. To be eligible for inclusion in the Underlying Index:

 

  

First, a company must pay qualified-dividends. A qualified dividend is generally taxable at long-term capital gains rates rather than ordinary income rates.

 

  

Second, a company must have a current environmental, social and governance (“ESG”) and controversy score (the “controversy score”), as determined by Sustainalytics, a Morningstar company and independent provider of ESG and corporate governance research and ratings. A company’s controversy score measures the degree to which newsworthy events involving the company may negatively impact the environment, society and the company’s business prospects, as well as the quality of the company’s efforts to manage and/or mitigate those negative impacts. Companies assigned the highest controversy score are not eligible for inclusion in the Underlying Index.

 

  

Third, a company must meet the following product involvement screens: (i) must not derive more than 50% of its revenue from involvement in tobacco products, and (ii) must not have involvement in the production of controversial weapons.

 

  

Fourth, a company must possess a sustainable competitive advantage in the market, as determined by the Index Provider (defined below).

After meeting the eligibility screens, the remaining companies are then ranked based on trailing 12-month dividend yield. The Underlying Index next targets an overall Morningstar Five Globe Sustainability Rating, which indicates low portfolio-level risk from ESG factors compared to the Fund’s Morningstar category, as determined by Morningstar. If the remaining companies, as a group, do not meet this rating requirement, companies in the bottom 25% of controversy scores are removed. If the resulting group of companies continues to not meet the rating requirement, then the next bottom 5% of companies are removed. The process is repeated until either the remaining group of companies meets the Five Globe Sustainability Rating or the bottom 50% of eligible companies are removed. The top 125 remaining companies based on trailing 12-month dividend yield are then chosen for inclusion in the Underlying Index.

The Underlying Index constituents are weighted according to the total qualified dividends paid during the past 12 months, with a maximum individual constituent weight of 5%, and a maximum sector weight of the lesser of 40% or 5 times that of the sector’s weight in the Parent Index. As of December 31, 2020, the market capitalizations of companies included in the Underlying Index were between $     billion and $     billion. The Underlying Index is reconstituted semi-annually in June and December. In addition, in March and September the controversy score and product involvement screens are applied and existing constituents failing those screens are deleted from the Underlying Index.

Under normal circumstances, in seeking to track the performance of the Underlying Index, the fund employs a replication strategy, which means the fund invests in substantially all of the securities represented in the Underlying Index in approximately the same proportions as the Underlying Index. The fund may also employ a sampling strategy when determined by the fund’s sub-adviser, Geode Capital Management, LLC (the “Sub-Adviser”), to be in the best interest of the fund in pursuing its investment objective. A sampling strategy means that the fund purchases a subset of the securities in the Underlying Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Underlying Index. The quantity of holdings in the fund will be based on a number of factors, including asset size of the fund.

The Underlying Index was developed and is sponsored by Morningstar® Indexes (the “Index Provider”), which is not affiliated with the fund, the Investment Manager or the Sub-Adviser. The Underlying Index is owned, calculated, and controlled by the Index Provider in its sole discretion. The Index Provider determines the composition of the Underlying Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Underlying Index. The Investment Manager, Sub-Adviser and their respective affiliates do not have the ability to select Underlying Index components or change the Underlying Index methodology.




DeltaShares Morningstar ESG Emerging Markets Dividend ETF

THE FUND’S PRINCIPAL INVESTMENT STRATEGY

Under normal market conditions, the DeltaShares® Morningstar ESG Emerging Markets Dividend ETF (the “fund”) invests a substantial portion of its assets in securities comprising the Morningstar® Emerging Markets Sustainability Dividend Yield Focus IndexSM (the “Underlying Index”) and depositary receipts based on component securities in the Underlying Index (or, in the case of depositary receipts which themselves are component securities, underlying stocks in respect of such depositary receipts) Under normal circumstances, the fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying securities of emerging market companies (as defined by the Index Provider).

 

The Underlying Index is designed to provide exposure to high-yielding, qualified-dividend-paying companies in emerging markets that exhibit superior quality and financial health and that score highly on sustainable-investing criteria. The Underlying Index is a subset of the Morningstar® Emerging Markets IndexSM (the “Parent Index”), an index designed to track the emerging market equity market. The Underlying Index first screens the companies in the Parent Index for eligibility. To be eligible for inclusion in the Underlying Index:

 

  

First, a company must pay qualified-dividends. A qualified dividend is generally taxable as long-term capital gains rates rather than ordinary income rates.

 

  

Second, a company must have a current environmental, social and governance (“ESG”) and controversy score (the “controversy score”), as determined by Sustainalytics, a Morningstar company and independent provider of ESG and corporate governance research and ratings. A company’s controversy score measures the degree to which newsworthy events involving the company may negatively impact the environment, society and the company’s business prospects, as well as the quality of the company’s efforts to manage and/or mitigate those negative impacts. Companies assigned the highest controversy score are not eligible for inclusion in the Underlying Index.

 

  

Third, a company must meet the following product involvement screens: (i) must not derive more than 50% of its revenue from involvement in tobacco products, and (ii) must not have involvement in the production of controversial weapons.

 

  

Fourth, a company must possess a sustainable competitive advantage in the market, as determined by the Index Provider (defined below).

After meeting the eligibility screens, the remaining companies are then ranked based on trailing 12-month dividend yield. The Underlying Index next targets an overall Morningstar Five Globe Sustainability Rating, which indicates low portfolio-level risk from ESG factors compared to the Fund’s Morningstar category, as determined by Morningstar. If the remaining companies, as a group, do not meet this rating requirement, companies in the bottom 25% of controversy scores are removed. If the resulting group of companies continues to not meet the rating requirement, then the next bottom 5% of companies are removed. The process is repeated until either the remaining group of companies meets the Five Globe Sustainability Rating or the bottom 50% of eligible companies are removed. The top 75 remaining companies based on trailing 12-month dividend yield are then chosen for inclusion in the Underlying Index.

The Underlying Index constituents are weighted according to the total qualified dividends paid during the past 12 months, with a maximum individual constituent weight of 5%, and a maximum sector weight of the lesser of 40% or 5 times that of the sector’s weight in the Parent Index. As of December 31, 2020, the market capitalizations of companies included in the Underlying Index were between $     million to $     billion. The Underlying Index is reconstituted semi-annually in June and December. In addition, in March and September the controversy score and product involvement screens are applied and existing constituents failing those screens are deleted from the Underlying Index.

Under normal circumstances, in seeking to track the performance of the Underlying Index, the fund employs a replication strategy, which means the fund invests in substantially all of the securities represented in the Underlying Index in approximately the same proportions as the Underlying Index. The fund may also employ a sampling strategy when determined by the fund’s sub-adviser, Geode Capital Management, LLC (the “Sub-Adviser”), to be in the best interest of the fund in pursuing its investment objective. A sampling strategy means that the fund purchases a subset of the securities in the Underlying Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Underlying Index. The quantity of holdings in the fund will be based on a number of factors, including asset size of the fund.

The Underlying Index was developed and is sponsored by Morningstar® Indexes (the “Index Provider”), which is not affiliated with the fund, the Investment Manager or the Sub-Adviser. The Underlying Index is owned, calculated, and controlled by the Index Provider in its sole discretion. The Index Provider determines the composition of the Underlying Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Underlying Index. The Investment Manager, Sub-Adviser and their respective affiliates do not have the ability to select Underlying Index components or change the Underlying Index methodology.



Friday, February 12, 2021

Wilshire wShares Enhanced Gold Trust seeks to list next week

wShares Enhanced Gold Trust (WGLD)

Physical gold ETP seeks to list next week.


SUMMARY & ANALYSIS

What is WGLD?

WGLD is a statutory trust that tracks a proprietary index that tracks physical gold price performance with reduced volatility and/or keeping correlation to S&P 500 (!?).


How does it do it?

The underlying index is composed of physical gold price and cash. The index ratio between gold and cash is calculated based on S&P500 and gold price volatility. More info on index here.

WGLD will replicate the index by holding physical gold and cash, and adjusting the amounts of each to reflect the index.


HEARSAY says:

The target market is unclear and as unarticulated as the methodology of the index. The strategy is esoteric, and those who are looking for such a strategy might be able to achieve it themselves.

The fact that the methodology is purposefully obfuscated so that it cannot be fully replicated (as stated in the prospectus) brings up the question of how the APs will be able to make tight enough markets without access to proprietary fund information?

WGLD comes across as a very clever solution in seek of a question.




Ticker: WGLD

Exchange: NYSE Arca

Expense ratio: 0.65%

Original filing date: February 14, 2020

Effective date: January 28, 2021

Listing Date: Week of February 15, 2021

CUSIP: 972005102

Active: No

Index: Wilshire Gold Index (Calculated by Solactive AG)

 

Investment Objective:

Track performance of Wilshire Gold Index (patented), less fees and expenses.

 

Investment Strategy: It's complicated: inputs are realized S&P 500 Volatility and LBMA Gold Price Volatility. Here's the [partial] calculation:











Constituents: LBMA gold price and cash.

 

Adviser: Wilshire Phoenix Funds LLC (SPONSOR) - Delaware Trust Company (TRUSTEE)

Sub-Adviser: Exchange Traded Concepts, LLC (Representative)

 

Prospectus is here.




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Fidelity listed 4 Actively-Managed ETFs

FGRO Fidelity Growth Opportunities ETF (Expense ratio: 0.59%)
FMAG Fidelity Magellan ETF (Expense ratio: 0.59%)
FPRO Fidelity Real Estate Investment ETF (Expense ratio: 0.59%)
FSMO Fidelity Small-Mid Cap Opportunities ETF (Expense ratio: 0.64%)

SUMMARY & ANALYSIS

What are they

Fidelity listed four new actively-managed ETFs last week that are complementary to their existing lineup. Use both top-down and bottom-up analysis to select stocks in each fund.


Structure

Publishes nightly "Tracker Baskets" (see below for links to each ETF's Tracker Basket) in lieu of actual holdings to protect their investment strategy IP. Each ETF also provides an "Overlap" file to give further information on holdings.


Market Impact

These ETFs further complete their basic building blocks of sector, industry, and market cap ETFs. This launch includes their flagship Magellan mutual fund brand name to their ETF family. Expect a fixed income batch to launch next.

As a privately-held company, Fidelity can afford to play the long game so keep an eye on them once they finish fleshing out their core lineup of ETFs. You can expect both esoteric strategies and bundling of their ETFs to push out their well-established distribution and advisory networks.


Tracking Baskets


ETFs' Data Points
Tickers: see above
Exchange: Cboe BZX
Expense ratios see above
Original filing date: September 24, 2020
Effective date: January 26, 2021
Listing Date: February 4, 2021
Active: Yes

Index: Not Applicable
 
Investment Objective:
Long-term growth of capital.

Adviser: Fidelity Management & Research Company LLC

Sub-Advisers
FMR Investment Management (UK) Limited (FMR UK)
Fidelity Management & Research (Hong Kong) Limited (FMR H.K.)
Fidelity Management & Research (Japan) Limited (FMR Japan)

Prospectus is here.



Fidelity now has:
Total ETFs: 37
Total Active ETFs: 11
AUM: USD$23.5B
Revenues: USD$36M
Asset-weighted expense ratio: 0.15%


MORE ETF HEARSAY


FGRO Fidelity Fidelity Growth Opportunities ETF
The fund is an actively managed ETF that operates pursuant to an exemptive order from the Securities and Exchange Commission (Order) and is not required to publicly disclose its complete portfolio holdings each business day. Instead, the fund publishes each business day on its website a “Tracking Basket,” which is designed to closely track the daily performance of the fund but is not the fund’s actual portfolio. The Tracking Basket is comprised of: (1) select recently disclosed portfolio holdings (Strategy Components); (2) liquid ETFs that convey information about the types of instruments (that are not otherwise fully represented by the Strategy Components) in which the fund invests (Representative ETFs); and (3) cash and cash equivalents. For additional information regarding the Tracking Basket, see “Additional Information about the Fund – Tracking Basket Structure” in the prospectus.

The fund also publishes each business day on its website the “Tracking Basket Weight Overlap,” which is the percentage weight overlap between the holdings of the prior business day's Tracking Basket compared to the holdings of the fund that formed the basis for the fund’s calculation of net asset value per share (NAV) at the end of the prior business day. The Tracking Basket Weight Overlap is designed to provide investors with an understanding of how similar the Tracking Basket is to the fund’s actual portfolio in percentage terms.
Normally investing primarily in equity securities.

Investing in companies that Fidelity Management & Research Company LLC (FMR) believes have above-average growth potential (stocks of these companies are often called "growth" stocks).

Investing in domestic and foreign issuers.
Using fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments.



FMAG - Fidelity Magellan ETF
The fund is an actively managed ETF that operates pursuant to an exemptive order from the Securities and Exchange Commission (Order) and is not required to publicly disclose its complete portfolio holdings each business day. Instead, the fund publishes each business day on its website a “Tracking Basket,” which is designed to closely track the daily performance of the fund but is not the fund’s actual portfolio. The Tracking Basket is comprised of: (1) select recently disclosed portfolio holdings (Strategy Components); (2) liquid ETFs that convey information about the types of instruments (that are not otherwise fully represented by the Strategy Components) in which the fund invests (Representative ETFs); and (3) cash and cash equivalents. For additional information regarding the Tracking Basket, see “Additional Information about the Fund – Tracking Basket Structure” in the prospectus.

The fund also publishes each business day on its website the “Tracking Basket Weight Overlap,” which is the percentage weight overlap between the holdings of the prior business day's Tracking Basket compared to the holdings of the fund that formed the basis for the fund’s calculation of net asset value per share (NAV) at the end of the prior business day. The Tracking Basket Weight Overlap is designed to provide investors with an understanding of how similar the Tracking Basket is to the fund’s actual portfolio in percentage terms.
Normally investing primarily in equity securities.

Investing in either "growth" stocks or "value" stocks or both.

Investing in domestic and foreign issuers.
Using fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments



FPRO - Fidelity Real Estate Investment ETF
Principal Investment Strategies
The fund is an actively managed ETF that operates pursuant to an exemptive order from the Securities and Exchange Commission (Order) and is not required to publicly disclose its complete portfolio holdings each business day. Instead, the fund publishes each business day on its website a “Tracking Basket,” which is designed to closely track the daily performance of the fund but is not the fund’s actual portfolio. The Tracking Basket is comprised of: (1) select recently disclosed portfolio holdings (Strategy Components); (2) liquid ETFs that convey information about the types of instruments (that are not otherwise fully represented by the Strategy Components) in which the fund invests (Representative ETFs); and (3) cash and cash equivalents. For additional information regarding the Tracking Basket, see “Additional Information about the Fund – Tracking Basket Structure” in the prospectus.

The fund also publishes each business day on its website the “Tracking Basket Weight Overlap,” which is the percentage weight overlap between the holdings of the prior business day's Tracking Basket compared to the holdings of the fund that formed the basis for the fund’s calculation of net asset value per share (NAV) at the end of the prior business day. The Tracking Basket Weight Overlap is designed to provide investors with an understanding of how similar the Tracking Basket is to the fund’s actual portfolio in percentage terms.
Normally investing primarily in equity securities.

Normally investing at least 80% of assets in securities of companies principally engaged in the real estate industry and other real estate related investments.

Investing in domestic and foreign issuers.

Using fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments.



FSMO - Fidelity Small-Mid Cap Opportunities ETF
Principal Investment Strategies
The fund is an actively managed ETF that operates pursuant to an exemptive order from the Securities and Exchange Commission (Order) and is not required to publicly disclose its complete portfolio holdings each business day. Instead, the fund publishes each business day on its website a “Tracking Basket,” which is designed to closely track the daily performance of the fund but is not the fund’s actual portfolio. The Tracking Basket is comprised of: (1) select recently disclosed portfolio holdings (Strategy Components); (2) liquid ETFs that convey information about the types of instruments (that are not otherwise fully represented by the Strategy Components) in which the fund invests (Representative ETFs); and (3) cash and cash equivalents. For additional information regarding the Tracking Basket, see “Additional Information about the Fund – Tracking Basket Structure” in the prospectus.

The fund also publishes each business day on its website the “Tracking Basket Weight Overlap,” which is the percentage weight overlap between the holdings of the prior business day's Tracking Basket compared to the holdings of the fund that formed the basis for the fund’s calculation of net asset value per share (NAV) at the end of the prior business day. The Tracking Basket Weight Overlap is designed to provide investors with an understanding of how similar the Tracking Basket is to the fund’s actual portfolio in percentage terms.
Normally investing primarily in equity securities.

Normally investing at least 80% of assets in securities of companies with small to medium market capitalizations (which, for purposes of this fund, are those companies with market capitalizations similar to companies in the Russell 2500™ Index).

Investing in domestic and foreign issuers.

Investing in either "growth" stocks or "value" stocks or both.

Using fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, and quantitative analysis to select investments.



ARK files for new ETF tracking Transparency Index

Name :  ARK Transparency ETF Ticker :   TBD Exchange :   TBD Expense ratio : 0.00% Original filing date : August 31, 2021 Effective date : N...