Subprime ETFs


Another ETF open to subprime mortgages

Mutual fund specialist Hartford Funds has has listed an actively managed bond ETF that’s open to subprime mortgages and other kinds of junk debt. 

According to its prospectus HTRB will invest at least 70% of its funds in investment grade debt, while up to 20% can be invested in junk. HTRB can invest up to 40% in debts from a foreign issuer and up to 20% in currencies other than the US dollar. Within these loose parameters, HTRB is free to invest in pretty much any kind of debt with any dated maturity.

Fund of Funds ETF that tries to be different

Two Roads and Anfield Capital have listed a new actively managed and equally weighted “fund of funds” ETF that tries to be different..

The Anfield Capital Diversified Alternatives ETF (DALT) will invest mostly in “sectors, market segments or asset classes that do not represent the general investment universe,” the prospectus says. It will do this by investing in other ETFs, CEFs and REITs. The sectors DALT will be most interested in include computing, medical sciences and nano-technology, infrastructure, resource exploitation and private equity. Securities will be selected based on their growth potential and risk. 


Horizons eyes international horizons – through futures

Horizons ETF is listing a new ETFs in Canada that tracks mid and large cap companies in the world’s richest countries outside of North America. The Horizons International Developed Markets Equity Index ETF (HXDM) gets exposure to foreign equity by futures contracts that are listed on “a major North American Exchange”, its prospectus says. HXDM will be listed in both Canadian and US dollars. 


US real estate comes to Taipei

Taiwanese issuer Capital Fund will be listing a new fund next month that tracks the American real estate market. The Capital Dow Jones U.S. Real Estate Index Exchange Traded Fund (00714), will track the popular Dow Jones benchmark, which is also used by iShares. Other popular REIT ETFs, such as those by Vanguard and Charles Schwab, use in-house indexes.