Holiday Break from Legal Fray

ETFMG lists travel industry ETF

Fresh off its lawsuit with Nasdaq, white-labeller ETF Managers Group is back in the fray, listing a travel industry ETF.

The ETFMG Travel Tech ETF (AWAY) will invest in global internet companies that help with travel. They include companies in ride sharing like Uber, companies in online bookings, like Booking Holdings, and travel advice businesses. Travel companies are identified based on keyword searches through their earnings calls with analysts, annual reports, and other documents.

Stocks will be weighted by market cap, with the biggest stocks capped at 8%. The ETF currently holds 30 stocks. The prospectus doesn’t state a fee.

BlackRock lists yet more growth and value smart beta ETFs

iShares is listing two new multi-factor ETFs that will emphasise value and growth.

  • iShares Factors US Growth Style ETF (STLG)
  • iShares Factors US Value Style ETF (STLV)

Both funds start with the famous US large cap gauge, the Russell 1000. They then score every company within the index for several factors. They are: momentum, quality, value, size, and low volatility.

Value is measured based on: P/B, P/D, P/E and P/CF. Momentum based on: price momentum, earnings momentum and earnings analyst revisions. Quality based on: gross profitability, dilution, accruals and low debt. Volatility and size are measured simply based on 12-month volatility and market cap.

The two funds pick companies with the best composite scores, with STLG focussing on growth while STLV puts an emphasis on value.

The prospectus does not say how many securities will be selected or what the funds’ fees will be.

Analysis – why more?

BlackRock already has eight value and growth smart beta ETFs that focus on US large caps. Some have been astoundingly successful, such as IWF, which has a massive $50 billion under management. IWF tracks a value screened version of the Russell 1000, much like today’s listing. However it doesn’t take the kind of multifactor approach that STLV will.

Still, a question arises: why is BlackRock listing even more smart beta ETFs? Are eight value and growth US large cap not enough?

iShares US large cap Growth ETFs
IWFiShares Russell 1000 Growth ETF0.19%$49.75B
IVWiShares S&P 500 Growth ETF0.18%$25.00B
IWYiShares Russell Top 200 Growth ETF0.20%$1.80B
JKEiShares Morningstar Large-Cap Growth ETF0.25%$1.25B
iShares US large cap Value ETFs
IWDiShares Russell 1000 Value ETF0.19%$41.95B
IVEiShares S&P 500 Value ETF0.18%$17.79B
JKFiShares Morningstar Large-Cap Value ETF0.25%$558.59M
IWXiShares Russell Top 200 Value ETF0.20%$510.27M