Notable ETF Filings and Launches Recap: June 2024

Recent ETF filings

ETF entrepreneur Matthew Tuttle is at it again, filing for the Tuttle Capital Congressional Trading ETF. This ETF would compete directly against both the Subversive Unusual Whales Democratic ETF

and the Subversive Unusual Whales Republican ETF

KRUZ

.

For a 0.75% expense ratio, this actively managed ETF will trade stocks reported by members of Congress based on Periodic Transaction Reports (PTRs) filed under the STOCK Act. These disclosures are due within 30 days from when a Congressperson or their spouse becomes aware of a transaction, but no later than 45 days from the date of the transaction.

The ETF will aim to buy or sell a security when a position is reported as being bought or sold by U.S. Congresspeople. The initial portfolio is based on PTRs filed by U.S. Congresspeople over the past three years and will consist of approximately 50 equity securities.

Moving to a different niche, Sprott, known for their commodity-focused lineup of closed-end funds and ETFs targeting everything from gold to uranium, is capitalizing on the recent silver boom by filing for a silver miners ETF.

This ETF will hold around 30-50 silver mining, production, or exploration stocks and will complement the existing Sprott Lithium Miners ETF

, the Sprott Nickel Miners ETF

NIKL

-0.58%

, and the Sprott Copper Miners ETF

COPP

-0.33%

, which all provide exposure to base, but not precious metals.

Finally, we have numerous structured product filings from First Trust. They are introducing a series of three U.S. equity buffer ETFs that protect against predefined downside risk over specific time periods, and unique "accelerator ETFs" that seek to enhance upside returns.

Recent ETF launches

On the launch side, the main activity for June has come from PGIM, the investment arm of life insurance company Prudential Financial. As of June 17, the ETF Central screener shows some 39 ETFs available from this issuer.

To capitalize on the demand for buffer ETFs from advisors, PGIM has launched the PGIM Laddered Fund of Buffer 12 ETF

and the PGIM Laddered Fund of Buffer 20 ETF

PBFR

+0.31%

, both offering exposure to U.S. large-cap equities for a 0.5% expense ratio.

In my earlier article on buffer ETFs, I noted that most of these ETFs correspond to a defined outcome period. That is, if you buy a buffer ETF meant for May later in June, the upside cap and downside buffer you receive will be different than if you bought at the onset.

To solve this timing issue, both new PGIM ETFs has essentially "laddered" multiple buffer ETFs as one would do with bonds or certificates of deposit (CDs).

Specifically, each ETF holds 12 other PGIM buffer ETFs corresponding to each month in the year. BUFP's underlying buffer ETFs provide 12% downside protection, while PBFR's is higher at 20%.

 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.