New ETF Filed: WisdomTree BioRevolution Fund

WisdomTree Megatrend ETFs

WisdomTree BioRevolution Fund

Ticker: TBD

Exchange: TBD

Expense ratio:

Original filing date: March 12, 2021

Effective date: May 26, 2021

Listing Date: TBD

CUSIP: TBD

Active: No

Index / Benchmark: WisdomTree Biology Revolution Index

 

Investment Objective:

Seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Biology Revolution Index

 

Investment Strategy: 

Index constituents determined by index committee based on companies' involvement in BioRevolution technologies:

(i) human health – the application of genetic technologies to prevent and treat disease, leading to significant enhancements to human health, wellbeing, and longevity.

(ii) consumer products – the applications of human genetic technologies to new classes of consumer products personalized for each individual.

(iii) agriculture and food – the transformation of agriculture, aquaculture, and food production, creating healthier and more sustainable models for feeding the growing global population.

(iv) materials, chemicals, and energy – biological re-engineering used to produce an increasing percentage of the physical inputs needed for manufacturing.

(v) biological machines and interfaces – DNA as a storage solution.

Constituents: TBD

 

Adviser: WisdomTree Asset Management

Sub-Adviser: TBD

 

Adminstrator: State Street Bank and Trust Company

Fund accountant: State Street Bank and Trust Company

Custodian: State Street Bank and Trust Company

Distributor: Foreside Fund Services, LLC

Legal counsel: Morgan, Lewis & Bockius LLP

External accounting: TBD

Prospectus is here.

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S000071961

Principal Investment Strategies of the Fund

The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Index. The Index is designed to provide exposure to equity securities of exchange-listed companies globally that will be significantly transformed by advancements in genetics and biotechnology. The Index constituents are determined by an Index committee that looks at companies focusing on: the application of genetic technologies to prevent and treat disease; the applications of human genetic technologies to new classes of consumer products personalized for each individual; the transformation of agriculture, aquaculture, and food production, creating healthier and more sustainable models for feeding the growing global population; biological re-engineering used to produce an increasing percentage of the physical inputs needed for manufacturing; and/or DNA as a storage solution (collectively, "BioRevolution Activities").

To be eligible for inclusion in the Index, a company must meet the following criteria as of the Index screening date:(i) derive at least 50% of their revenue from BioRevolution Activities; (ii) market capitalization of at least $300 million; and (iii) have an average daily volume of at least $1 million for each of the preceding three months.

The Index is reconstituted and rebalanced [semi-annually]. As of [_____], 2021, companies in the [health care] sector comprised a significant portion of the Index.

To the extent the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as the Index.

Additional Information About the Fund's Investment Strategies

The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the types of securities suggested by its name (i.e., investments connoted by the Index). The Fund anticipates meeting this policy because, under normal circumstances, at least 80% of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in component securities of the underlying Index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities, such as depositary receipts based on component securities. WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”) expects that, over time, the correlation between the Fund’s performance and that of its Index, before fees and expenses, will be 95% or better. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its Index, and there can be no guarantee that the Fund will achieve a high degree of correlation.

The quantity of holdings in the Fund, by using a representative sampling strategy, will be based on a number of factors, including asset size of the Fund. In addition, from time to time, securities are added to or removed from the Index and consequently the attributes of the Index, such as sectors, industries or countries represented in the Index and weightings, may change. The Fund may sell securities that are represented in the Index, or purchase securities that are not yet represented in the Index, in anticipation of their removal from or addition to the Index or to reflect various corporate actions or other changes to the Index. Further, the Fund may overweight or underweight securities in the Index, purchase or sell securities not in the Index, or utilize various combinations of other available techniques, in seeking to track the Index.

The Index is comprised of global exchange-listed companies that are primarily involved in BioRevolution Activities. For instance, the following key sectors are used as guidelines to determine if a company is primarily involved in BioRevolution Activities:

(i) human health – the application of genetic technologies to prevent and treat disease, leading to significant enhancements to human health, wellbeing, and longevity.

(ii) consumer products – the applications of human genetic technologies to new classes of consumer products personalized for each individual.

(iii) agriculture and food – the transformation of agriculture, aquaculture, and food production, creating healthier and more sustainable models for feeding the growing global population.

(iv) materials, chemicals, and energy – biological re-engineering used to produce an increasing percentage of the physical inputs needed for manufacturing.

(v) biological machines and interfaces – DNA as a storage solution.

New ETF filed to hedge against interest rate rises: Simplify Credit Hedge ETF (NYSE arca: CDX)

Simplify Credit Hedge ETF

Ticker: CDX

Exchange: NYSE Arca

Expense ratio: TBD (at least 0.50%)

Original filing date: March 9, 2021

Effective date: May 24, 2021

Listing Date: TBD

CUSIP: TBD

Active: Yes

Index / Benchmark: Not Applicable

 

Investment Objective:

Seeks to hedge credit spread movements arising from an increase in credit spreads, and to benefit from market stress when fixed income volatility increases, while providing the potential for income.

 

Investment Strategy:

Portfolio of CDX payer options that are likely to be profitable as CDX spreads widen. Also invests in US treasuries, TIPS, MMkt funds, & ETFs.

Adviser: Simplify Asset Management Inc.

Sub-Adviser: N/A

 

Adminstrator: Bank of New York Mellon

Fund accountant: Bank of New York Mellon

Custodian: Bank of New York Mellon

Distributor: Foreside Financial Services, LLC

Legal counsel: Thompson Hine LLP

External accounting: TBD

 

Prospectus is here.

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S000071927

Principal Investment Strategies: The adviser seeks to achieve the Fund’s investment objective by investing in credit default swap (“CDS”) index payer options, U.S. Treasuries, U.S. Treasury Inflation-Protected Securities (“TIPS”), money market funds, and exchange traded funds (“ETFs”) that primarily invest in U.S. Treasuries, TIPS, and investment grade bonds. The Fund may invest up to 50% of its assets in CDS index payer options.

 

A CDS index option is a credit derivative used to hedge credit risk. There are generally two types of CDS index options, payer options and receiver options. The Fund invests in payer options (not receiver options). A payer option entitles the holder to the right, but not the obligation, to buy protection on the credit default swap index (“CDX”) at the strike spread level on expiry. The Fund seeks to create a portfolio of CDX payer options that are likely to be profitable as CDX spreads widen (as a widening spread generally indicates growing concern about the ability of borrowers to service their debt).

 

The Fund invests in Treasuries and TIPS directly or through other ETFs. TIPS are U.S. government bonds (specifically, Treasury securities) whose principal amount increases with inflation, as measured by the Consumer Price Index and are designed to protect investors from inflation risk. The Fund may purchase Treasuries or TIPS of any maturity.

 

PRINCIPAL INVESTMENT STRATEGIES:

 

The adviser seeks to achieve the Fund’s investment objective by investing in credit default swap (“CDS”) index payer options, U.S. Treasuries, U.S. Treasury Inflation-Protected Securities (“TIPS”), money market funds, and exchange traded funds (“ETFs”) that primarily invest in U.S. Treasuries, TIPS, and investment grade bonds. The Fund may invest up to 50% of its assets in credit default swap (“CDS”) index payer options.

 

A CDS index option is a credit derivative used to hedge credit risk. There are generally two types of CDS index options, payer options and receiver options. The Fund invests in payer options (not receiver options). A payer option entitles the holder to the right, but not the obligation, to buy protection on the credit default swap index (“CDX”) at the strike spread level on expiry.

 

The CDX is a benchmark made up of credit default swaps that have been issued by North American and emerging market companies. A credit default swap is a type of derivative contract that offers one counterparty protection against a credit event of an issuer. The CDX currently is comprised of over 100 issuers and tracks and measures total returns for investment grade and high yield segments of the bond issuer market. The CDX is rebalanced every six months.

 

The Fund seeks to create a portfolio of CDX payer options that are likely to be profitable as CDX spreads widen (as a widening spread generally indicates growing concern about the ability of borrowers to service their debt). If a default occurs prior to the CDS index payer option’s expiration date, the Fund can trigger a credit event on the exercise of the option. investor who exercises a payer option becomes short the credit risk of the CDX, meaning that an increase in default events are likely to be profitable to a payer option holder, as such holders receive default losses. A buyer of a CDS index payer option receives both the payoff due to the difference between the spread level at the expiration date and the strike of the option and the payoff due to any losses.

 

The Fund invests in Treasuries and TIPS directly or through other ETFs. TIPS are U.S. government bonds (specifically, Treasury securities) whose principal amount increases with inflation, as measured by the Consumer Price Index and are designed to protect investors from inflation risk. The Fund may purchase Treasuries or TIPS of any maturity.

Quasi Bitcoin ETF filed: Simplify ETFs

Simplify U.S. Equity PLUS Bitcoin ETF

SUMMARY

U.S. equity and some Bitcoin exposure: Invests at least 80% of fund assets in U.S. stocks, and up to 15% in the Grayscale Bitcoin Trust. However, can liquidate all into cash for defensive positioning.

ANALYSIS

This is either and "Equity + Bitcoin" ETF or a "Bitcoin Lite" ETF as it has only a maximum of 15% exposure to Bitcoin via a wholly-owned subsidiary. This strategy takes advantage of the fact that ETFs can hold up to 20% of their AUM in non-listed assets.

This is a creative approach to providing US investors exposure to Bitcoin returns by adding a splash of it to the portfolio rather than as a standalone fund. No standalone fund has yet been approved by the SEC so this is an attempt to satiate the high demand for Bitcoin exposure before a full-fledged fund can be launched.

Questions that come to mind:

1. What will happen to this fund once a Bitcoin ETF is finally launched? Will assets be sticky, or will investors look elsewhere give that this fund's exposure is entirely tied up with one subsidiary?

2. How does this divergent fund from Simplify's lineup and Convexity / Disruption mantra help its distribution shape the company's narrative?

3. How likely is to be approved by the SEC?

Bottom line is that this is a creative partial solution to a pressing industry problem of investing in Bitcoin in an ETF or any national exchange.

Ticker: SPBC

Exchange: NASDAQ

Expense ratio: 0.00%

Original filing date: March 9, 2021

Effective date: May 24, 2021

Listing Date: TBD

CUSIP: TBD

Active: Yes

Index / Benchmark: Not Applicable

 

Investment Objective:

seeks long-term capital appreciation.

 

Investment Strategy: Invests in US stocks and up to 15% in a Bitcoin Trust

Constituents:

 

Adviser: Simplify Asset Management Inc

Sub-Adviser: 0

 

Adminstrator: Bank of New York Mellon

Fund accountant: Bank of New York Mellon

Custodian: Bank of New York Mellon

Distributor: Foreside Financial Services, LLC

Legal counsel: Thompson Hine LLP

External accounting: TBD

https://www.sec.gov/Archives/edgar/data/1810747/000182912621001372/0001829126-21-001372-index.htm

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S000071926

Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. companies and cryptocurrencies (indirectly and solely through Grayscale® Bitcoin Trust).

 

The Fund invests in equity securities of U.S. companies through (i) exchange-traded futures contracts, (ii) equity securities of U.S. companies, and (iii) ETFs that primarily invest in the equity securities of U.S. companies. The Fund defines equity securities as common stock, preferred stock, or futures on common or preferred stock. The Fund defines U.S. companies as those organized in the U.S.; having a class of securities whose principal securities market is in the U.S.; or derives 50% or more of its total revenues or earnings from goods produced, sales made, or services provided in the U.S.; or maintains 50% or more of its employees, assets, investments, operations, or other business activity in the U.S. The Fund invests in companies without restriction as to capitalization.

 

Bitcoin Strategy

 

The Fund invests up to 15% of its total assets in cryptocurrencies, indirectly and solely through Grayscale® Bitcoin Trust. The Fund expects to gain exposure to cryptocurrencies indirectly by investing up to 15% of its total assets (measured at the time of investment) in a wholly-owned and controlled subsidiary, which is designed to enhance the ability of the Fund to obtain exposure to cryptocurrencies consistent with the limits of the U.S. federal tax law requirements applicable to regulated investment companies.

New actively-managed ETF Sponsor: Catholic Investing Guidelines ETF filed

FIS Knights of Columbus Global Belief ETF

Ticker: KOCG
Exchange: NYSE Arca
Expense ratio: 0.75%
Original filing date: March 8, 2021
Listing Date: July 14, 2021
CUSIP: 78433H105
Active: Yes
Index / Benchmark: FTSE All-World index

SUMMARY

Actively-managed ETF that invests globally in companies that are consistent with Catholic values. Avoids companies involved in contraception, pornography, stem cell research/human cloning, weapons of mass destruction, etc.

ANALYSIS

The recent faith-based Inspire ETFs have shown that a much more holistic and inclusive approach to marketing a values-based investment strategy can be successful, with AUM across their eight ETF offerings closing in on $1Billion and management fees almost at $5Million p.a.

This contrasts with previous attempts based on nomenclature and established index clout. In other words, although the methodology of previous faith-based ETFs (FaithShares, Global X CATH and CEFA, etc) may wax lyrical on kindred values to Inspire, they were backed by indices published by the usual suspects like S&P and MSCI).

In the latest entry into faith-based ETFs, we have the FIS Knights of Columbus Global Belief ETF. Although this ETF will be actively-managed, we now have FTSE's participation as the benchmark instead of the underlying index. However, we have the [spiritual?] guidance of an established authority on faith, the US Conference of Catholic Bishops on what are deemed acceptable companies.

The final piece to the success of this product will be the marketing and distribution of the fund(s). Inspire has done a great job with its CEO its Robert Netzly as the face of the investing congregation, and a cohesive story and objective. The Knights of Columbus Asset Advisers do not have a CEO, and is instead led by a serious-looking CIO, flanked by Legal and Strategy. Let's pray their distribution is ready and trained on all things ETF leading up to the day of ascension to listing.

Investment Objective:
Seeks income and long-term growth of capital.

Investment Strategy:

The USCCB Guidelines cover the following areas:

Protecting Human Life

• Abortion
• Contraceptives
• Embryonic Stem Cell/Human Cloning
• Embryonic stem cell research (ESCR);
• Fetal tissue research or stem cell research derived from embryos;
• Human cloning

Promoting Human Dignity

• Human Rights
• Racial Discrimination
• Gender Discrimination
• Access to Pharmaceuticals (e.g. HIV/AIDS)
• Curbing Pornography

Reducing Arms Production

• Production and Sale of Weapons
• Antipersonnel Landmines

Pursuing Economic Justice

• Labor Standards/Sweatshops
• Affordable Housing / Banking

Protecting the Environment
Encouraging Corporate Responsibility

Makes investment decisions consistent with the United States Conference of Catholic Bishops’ Socially Responsible Investing Guidelines (USCCB Guidelines):

i.e. Avoid investments in companies that are believed to be involved with abortion, contraception, pornography, stem cell research/ human cloning, weapons of mass destruction, or other enterprises that conflict with the USCCB Guidelines.

Constituents: 90 ~ 110

Adviser: Knights of Columbus Asset Advisors LLC

Sub-Adviser: Faith Investor Services LLC

Boston Advisors as day-to-day managers

Prospectus is here.

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S000071907

Principal Investment Strategies of the Fund

Under normal circumstances, the Fund invests at least 80% of its assets (net assets plus any borrowings for investment purposes) in equity securities, including common stock and ADRs and GDRs of international and domestic companies. The Fund may invest in securities of companies with any market capitalization.

The Sub-Adviser employs an “active management” investment strategy in seeking to achieve the Fund’s investment objective. In selecting investments for the Fund, the Sub-Adviser combines quantitative and qualitative analyses that together seek to identify companies that have above-average investment potential. The Adviser first ranks the individual stocks in which the Fund may invest through the use of models that incorporate multiple fundamental factors, with the weightings of the factors in the models varying in relation to the stock’s sector and region and the current market environment. The Sub-Adviser then evaluates highly-ranked securities for purchase based on fundamental data and macroeconomic considerations, while managing the Fund’s exposures to sectors and regions to ensure broad diversification. The Sub-Adviser will generally sell a stock on behalf of the Fund if the stock experiences a rankings decline or extreme price movements, or for risk management purposes.

The Fund makes investment decisions consistent with the United States Conference of Catholic Bishops’ Socially Responsible Investing Guidelines (the “USCCB Guidelines”), and therefore, the Fund is designed to avoid investments in companies that are believed to be involved with abortion, contraception, pornography, stem cell research/ human cloning, weapons of mass destruction, or other enterprises that conflict with the USCCB Guidelines. The policies and practices of the companies selected for the Fund are monitored for various issues contemplated by the USCCB Guidelines. If the Adviser becomes aware that the Fund is invested in a company whose policies and practices are inconsistent with the USCCB Guidelines, the Adviser may sell the company’s securities or otherwise exclude future investments in such company.

The Fund may invest in companies of any market capitalization located anywhere in the world, including companies located in emerging markets. The Fund will focus its investments in all capitalization companies. Foreign securities in which the Fund may invest may be U.S. dollar-denominated

The average market capitalization of the Fund’s portfolio is expected to range from $3 billion to $1.7 trillion. The Fund typically will invest in 90 to 110 portfolio companies. The Fund seeks to outperform the FTSE All-World index.

The Fund will invest in at least three countries (one of which may be the United States) and will invest at least 40% of its total assets at the time of purchase in in equity securities of companies headquartered outside the United States.

During temporary defensive periods (i.e., in response to adverse market, economic or political conditions), the Fund may invest up to 100% of its total assets in liquid, short-term investments, including high quality, short-term securities. The Fund may not achieve its investment objectives under these circumstances. The Sub-Adviser’s determination that it is temporarily unable to follow the Fund’s investment strategy or that it is impractical to do so will generally occur only in situations in which a market disruption event has occurred and where trading in the securities selected through application of the Fund’s investment strategy is extremely limited or absent.

The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of any collateral received).

List of Municipal Bond ETFs

Municipal Bond ETFs

Ticker Fund Name

TAXF American Century Diversified Municipal Bond ETF

AVMU Avantis Core Municipal Fixed Income ETF

MEAR BlackRock Short Maturity Municipal Bond ETF

MUST Columbia Multi-Sector Municipal Income ETF

EVLMC Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond NextShares

FCAL First Trust California Municipal High Income ETF

FMB First Trust Managed Municipal ETF

MCEF First Trust Municipal CEF Income Opportunity ETF

FMHI First Trust Municipal High Income ETF

FSMB First Trust Short Duration Managed Municipal ETF

FUMB First Trust Ultra Short Duration Municipal ETF

FLMI Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

FLMB Franklin Liberty Federal Tax-Free Bond ETF

HMOP Hartford Municipal Opportunities ETF

BSML Invesco BulletShares 2021 Municipal Bond ETF

BSMM Invesco BulletShares 2022 Municipal Bond ETF

BSMN Invesco BulletShares 2023 Municipal Bond ETF

BSMO Invesco BulletShares 2024 Municipal Bond ETF

BSMP Invesco BulletShares 2025 Municipal Bond ETF

BSMQ Invesco BulletShares 2026 Municipal Bond ETF

BSMR Invesco BulletShares 2027 Municipal Bond ETF

BSMS Invesco BulletShares 2028 Municipal Bond ETF

BSMT Invesco BulletShares 2029 Municipal Bond ETF

BSMU Invesco BulletShares 2030 Municipal Bond ETF

PWZ Invesco California AMT-Free Municipal Bond ETF

PZA         Invesco National AMT-Free Municipal Bond ETF

PZT         Invesco New York AMT-Free Municipal Bond ETF

BAB         Invesco Taxable Municipal Bond ETF

PVI         Invesco VRDO Tax-Free Weekly ETF

MMIN IQ MacKay Municipal Insured ETF

MMIT IQ MacKay Municipal Intermediate ETF

CMF iShares California Muni Bond ETF

IBMJ iShares iBonds Dec 2021 Term Muni Bond ETF

IBMK iShares iBonds Dec 2022 Term Muni Bond ETF

IBML iShares iBonds Dec 2023 Term Muni Bond ETF

IBMM iShares iBonds Dec 2024 Term Muni Bond ETF

IBMN iShares iBonds Dec 2025 Term Muni Bond ETF

IBMO iShares iBonds Dec 2026 Term Muni Bond ETF

IBMP iShares iBonds Dec 2027 Term Muni Bond ETF

IBMQ iShares iBonds Dec 2028 Term Muni Bond ETF

MUB iShares National Muni Bond ETF

NYF         iShares New York Muni Bond ETF

SUB         iShares Short-Term National Muni Bond ETF

JMUB JPMorgan Municipal ETF

JMST JPMorgan Ultra-Short Municipal Income ETF

OVM Overlay Shares Municipal Bond ETF

MUNI PIMCO Intermediate Municipal Bond Active ETF

SMMU PIMCO Short Term Municipal Bond Active ETF

RTAI Rareview Tax Advantaged Income ETF

HYMB SPDR Nuveen Bloomberg Barclays High Yield Municipal Bond ETF

TFI         SPDR Nuveen Bloomberg Barclays Municipal Bond ETF

SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF

MBND SPDR Nuveen Municipal Bond ETF

XMPT VanEck Vectors CEF Municipal Income ETF

HYD VanEck Vectors High Yield Muni ETF

ITM         VanEck Vectors Intermediate Muni ETF

MLN VanEck Vectors Long Muni ETF

MAAX VanEck Vectors Muni Allocation ETF

SHYD VanEck Vectors Short High Yield Muni ETF

SMB VanEck Vectors Short Muni ETF

VTEB Vanguard Tax-Exempt Bond ETF

RVNU Xtrackers Municipal Infrastructure Revenue Bond ETF

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