Beast from the East, Actively Managed from the West


Davis Advisors lists actively managed international ETF

Tuscon-based and employee-owned Davis Advisors is listing an actively managed international ETF. The Davis Select International ETF (DINT) will use the “Davis Investment Discipline” to pick stocks issued by foreign companies, including companies in emerging markets. From what I can gather, the “Davis Investment Discipline” is essentially a type of value investing. It involves picking companies with “proven management, a durable franchise and business model, and sustainable competitive advantages,” the prospectus says. Companies are then sold when their “market price exceeds Davis Advisors’ estimates of intrinsic value.”


Companies are classified as international if they derive “at least 50% of [their] revenue from business outside the US or [have] at least 50% of [their] assets outside the US,” the prospectus says. At least 40% of DINT’s assets will be invested in international companies – including EM companies – at any time. 


Corporate action:

ProShares waters down its inverse VIX ETFs

ProShares is altering its two inverse VIX trackers (UVXY, SVXY). Going forward, ProShares will weaken UVXY’s “Ultrashort” exposure from -2x down to -1.5x and SVXY’s exposure from -1x down to -0.5x. Perhaps appropriately in light of recent events, ProShares warns that investing in these funds can cause investors to lose all their investment.



BMO lists bond and smart beta ETFs

The Bank of Montreal, one of the big three ETF issuers in Canada, is listing five new ETFs on the Toronto Stock Exchange.

  • BMO Short-Term Bond Index ETF (ZSB)
  • BMO Corporate Bond Index ETF (ZCB)
  • BMO Government Bond Index ETF (ZGB)
  • BMO US High Dividend Covered Call Hedged to Cad ETF (ZWS)
  • BMO Europe High Dividend Covered Call ETF (ZWP)

The three bond index ETFs are passive and do what they say on the tin at a very low cost (0.11% management fee for ZSB; 0.17% for the other two).

The latter two are a mix of active management and smart beta. According to the prospectus, ZWS and ZWP will buy American and European companies judged by management to be likely to yield higher dividends. The stock picking will be backed up with a covered call strategy, which will help hedge against a decline in the price of the securities on which they are written, andprovide an additional revenue for the funds.

BMO has more than a dozen additional actively managed smart beta ETFs in the pipeline, the prospectus indicates. For more information please get in touch.



Kookmin Bank lists ESG fund

Korean banking major Kookmin Bank is listing an ESG ETF in Seoul, showing how ESG funds are taking root in East Asia. The KB KBSTAR ESG SRI ETF (290130) will track the KRX ESG Social Index.


Samsung lists more covered call ETNs

Samsung is listing a raft of new ETNs. They are:

  • Samsung Securities Samsung K200 Call 1903-02 ETN 49 (530049)
  • Samsung Securities Samsung K200 Put 1903-01 ETN 50 (530050)
  • Samsung Securities Samsung K200 Put 1903-02 ETN 51 (530051)
  • Samsung Securities Samsung K200 Call 1903-01 ETN 48 (530048)


JP Morgan cross-lists ETFs into Germany

JP Morgan is cross-listing several of its London-listed ETFs into Germany. They are:

  • JPM Equity Long-Short UCITS ETF (JPQE)
  • JPM Managed Futures UCITS ETF (JPGM).
  • JP Morgan USD Emerging Markets Sovereign Bond UCITS ETF (JPBM)
  • JP Morgan USD Ultra-Short Income UCITS ETF (JPPS)
  • JP Morgan BetaBuilders EUR Govt Bond 1-3 yr UCITS ETF (JE13)