Global ETF Monitor – 20170707

Americas

Evangelical Christian ETFs are few in number, but Inspire has just added one more. The newly launched Inspire Corporate Bond Impact ETF (IBD) will invest in the bonds of S&P 500 companies – but only those deemed worthy. The fund will not touch the bonds of “any company that has any degree of participation in activities that do not align with biblical values,” the fund’s factsheet says. These values include alcohol, porn and “the LGBTQ lifestyle”. The ETF is put together with the help of Northern Lights Fund Trust IV.

Principal Spectrum has listed a new active ETF in the US, called the Preferred Securities Active ETF (PREF). PREF actively picks “$1000 par institutional preferred securities”. An American peculiarity, preferred securities trade like bonds but give the company issuing them favourable tax treatment.

Legg Mason has launched a new factor ETF that will track small cap American companies with low valuations but high debt coverage and profits. The Legg Mason Small-Cap Quality Value ETF (SQLV) will compare companies for quality and value across different sectors. Like other factor ETFs, SQLV will score stocks for momentum, helping the fund determine when they should be bought and sold.

Corporate Action

Source has delisted two of its ETFs  following its acquisition by Invesco. The two ETFs delisted, SOURCE FTSE RAFI UK Equity Income Physical ETF (DVUK) and the SOURCE FTSE RAFI US Equity Income Physical ETF (DVUS), were run in conjunction with LGIM.