Portfolio ETFs

More Cryptocurrency ETFs Are Coming: Portfolio Products

January 08, 2018 at 05:15 AM
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REX Shares, a provider of alternatives strategy funds and exchange-traded funds, is partnering with Brian Kelly, founder and CEO of BKCM, to develop a line of ETFs and other funds designed to give investors exposure to the blockchain technology, cryptocurrency and digital assets sectors.

Kelly, who is also a contributor to CNBC and an investor in REX Shares, will serve as a portfolio manager for the suite of funds.

"By partnering with REX, we hope to bring a greater opportunity set of cryptocurrency and blockchain strategies to investors who are looking for access in secure and transparent ways," Kelly said in a statement.

Kelly is reported to be an early believer in cryptocurrencies, investing since 2012 and having launched one of the first cryptocurrency hedge funds.

According to the press release, REX and BKCM see a large demand for regulated investment products that give exposure to the potential value creation taking place with the evolution of cryptocurrencies and blockchain technology.

REX Shares founder and CEO Greg King has also been an early investor in the sector, personally investing in cryptocurrencies since 2013. King said REX Shares chose Kelly as a partner because of his experience in cryptocurrency as well as his commitment to investor education.

"Brian is a knowledgeable portfolio manager who uses his platforms, such as CNBC's Fast Money as well as his book 'The Bitcoin Big Bang,' to educate investors on cryptocurrencies, the technology behind them and why he believes they are important," King said in a statement.

Last month bitcoin futures contracts started trading at the CME and cboe Global Markets and the NYSE filed with the SEC to list two ProShares bitcoin ETFs.

SSGA Launches Three 'Innovative Industry' ETFs

State Street Global Advisors (SSGA) launched three SPDR ETFs – SPDR Kensho Intelligent Structures ETF (XKII), SPDR Kensho Smart Mobility ETF (XKST) and SPDR Kensho Future Security ETF (XKFS) – that provide exposure to the companies whose products and services are driving innovation. 

The three ETFs track proprietary index methodologies developed by Kensho Technologies, a provider of next-generation analytics, machine learning and data visualization systems.

The SPDR Kensho Intelligent Structures ETF seeks to track the Kensho Intelligent Infrastructure Index, which aims to capture companies providing advanced products and services in the areas of smart building infrastructure, smart power grids, intelligent transportation infrastructure and intelligent water infrastructure.

The SPDR Kensho Smart Mobility ETF seeks to track the Kensho Smart Transportation Index. This index aims to capture companies providing advanced products and services in the areas of autonomous vehicles, drones and drone technology for civilian and commercial application, and advanced transport systems.

The SPDR Kensho Future Security ETF seeks to track the Kensho Future Security Index. This index aims to capture companies providing advanced products and services in the areas of cyber security, advanced border security, and the following areas for military application: robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities.

Arrow Funds Expands ETF Lineup With Two Differentiated International Equity Strategies

Arrow Funds launched two ETFs – Arrow DWA Country Rotation ETF (DWCR) and the Arrow Dogs of the World ETF (DOGS) – that look to provide opportunities to capitalize on international market shifts and generate alpha, while employing vastly different methodologies to achieve their objectives.

The index underlying the Arrow DWA Country Rotation ETF offers a systematic, price momentum strategy that capitalizes on changing international market trends. Rebalanced quarterly, DWCR and its index begin with a universe of 41 countries, then narrow that list down to the 10 strongest performing countries which exhibit the highest relative strength or price performance. Once those countries have been identified, the methodology then identifies 10 companies that demonstrate powerful relative strength characteristics within that country.

Conversely, the Arrow Dogs of the World ETF employs a contrarian strategy to find value among the worst performing international securities where a mean reversion is expected. Rebalanced annually, DOGS and its underlying index are made up of the five worst-performing countries among a universe of 44 developed, emerging and frontier markets. Holdings represent the top 75% of the market capitalization for each of the five countries selected.

Cboe Welcomes New Issuers AlphaClone and ALPS to ETF Marketplace

Cboe Global Markets, Inc. announced that two AlphaClone funds successfully transferred to the Cboe ETF Marketplace from NYSE Arca.

The AlphaClone Alternative Alpha ETF (ALFA) seeks to track the price and yield, before fees and expenses, of the AlphaClone Hedge Fund Downside Hedged Index. The AlphaClone International ETF (ALFI) seeks to track the total return performance, before fees and expenses, of the AlphaClone International Downside Hedged Index. More information is available here.

Separately, Cboe also announced it had also welcomed new issuer ALPS to the Cboe ETF Marketplace.

The ALPS Disruptive Technologies ETF (DTEC) seeks investment results that correspond (before fees and expenses) generally to the performance of the Indxx Disruptive Technologies Index. More information is available here.

Year-to-date, Cboe has welcomed 129 ETFs to its U.S. market. In the third quarter of 2017, Cboe welcomed a total of 23 ETFs to the Cboe ETF Marketplace as well as 30 transfers, and year-to-date has won 33% of all new U.S. ETF listings.

There are now 250 ETFs listed on the Cboe ETF Marketplace, from 47 different issuers.

Cboe Launches New Volatility Product Microsite for ETP Investors

Cboe Global Markets launched a new microsite designed to educate and inform investors about exchange-traded volatility products (ETPs). The site is available at cboe.com/voletps.

Cboe is the home of the Cboe Volatility Index (VIX Index), which is based on real-time prices of options on the S&P 500 Index (SPX) and is designed to reflect investors' consensus view of future (30-day) expected stock market volatility.

A suite of Cboe VIX Index products covers expected volatility across asset classes: equities, fixed income, foreign exchange and commodities. VIX options are traded at Cboe Options Exchange, while VIX futures are traded at Cboe Futures Exchange (CFE). Cboe also has created a number of volatility benchmark indexes based on sector-specific ETFs.

The newly launched microsite helps investors weigh the risks and rewards of taking positions in volatility-linked ETPs, which are typically linked to the value of an index, not to the VIX itself.

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