Notable ETF Filings and Launches Recap: September 2024

Recent ETF filings

Recent ETF filings have showcased a notable trend: an interest in private credit. Many issuers are racing to capitalize on this area, aiming to be pioneers in a relatively untapped market within the ETF space.

First on the list is the highly anticipated PDR SSGA Apollo IG Public and Private Credit ETF. This ETF plans to allocate 80% of its assets to investment-grade debt, which will include a mix of public and private credit sourced by Apollo, and 20% to high-yield bonds.

A critical aspect to monitor will be whether regulators approve Apollo's capability to provide daily pricing for the private credit investments. This approval is essential for ensuring the ETF's liquidity and transparency, key factors for its potential success.

Virtus is also tapping into this trend. They currently offer the Virtus Private Credit Strategy ETF

, which focuses on Closed-End Funds (CEFs) and Business Development Companies (BDCs) with exposure to private credit.

Expanding their offerings, Virtus is now poised to launch the Virtus Seix AAA Private Credit CLO ETF

. This new ETF will invest 80% of its capital in AAA-rated Collateralized Loan Obligations (CLOs), backed by pools of private loans, providing a high-credit-quality entry point into private credit markets.

Similarly, Bondbloxx is introducing a new ETF that mirrors this focus, with 80% of its assets in CLOs backed by private loan pools. However, it sets itself apart with a mandate allowing up to 35% investment in below-investment-grade issuers, offering a more flexible approach to credit quality.

Recent ETF launches

Dimensional Fund Advisors has expanded its offerings with two actively managed factor ETFs: the Dimensional International Vector Equity ETF

and the Dimensional US Vector Equity ETF

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. These ETFs are notable for their relatively low costs for active management, sporting expense ratios of 0.34% and 0.28% respectively. Both ETFs tilt towards stocks demonstrating robust profitability, applying Dimensional's renowned research-driven, systematic approach to factor investing.

Simplify Asset Management continues to integrate complex strategies into accessible formats with the launch of the Simplify National Muni Bond ETF

. True to Simplify's innovative approach, NMB incorporates an options overlay to enhance yield while maintaining the tax efficiency expected from a municipal bond fund.

ProShares has built on the success of its options-based strategies with a new fund, the ProShares Russell 2000 High Income ETF

. Following the model of the previously successful ProShares S&P 500 High Income ETF (ISPY), ITWO employs a daily covered call strategy aimed at generating income from a portfolio of small-cap stocks, indicative of ProShares' expertise in marrying income generation with equity investment.

Calamos Investments has introduced a novel concept focusing on risk mitigation, the Calamos Laddered S&P 500 Structured Alt Protection ETF

. Notably, CPSL is an "ETF of ETFs," comprising several Calamos S&P 500 Structured Alt Protection ETFs with staggering maturities.

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.