ETP roundup: Vesper launches ETF that ‘buys on the dip’

Vesper Capital Management has launched an exchange-traded fund (ETF) that 'buys on the dip'. The Vesper US Large Cap Short-Term Reversal Strategy ETF (UTRN) provides investors with exposure to a select group of stocks within the S&P 500 that are likely to benefit from sharp, short-term declines to quickly bounce back. The ETF attempts to improve such market anomaly, called the short term reversal, by applying its proprietary methodology that identifies stocks with the greatest potential for a weekly rebound. 'If investors overreact to new information and if that overreaction is consistent, then it may be possible to construct trading strategies to benefit from this behaviour,' said Dr. Victor Chow, senior investment consultant at Vesper Capital Management.

Vanguard has rolled out two new low-cost ETFs to add to its environmental, social and governance (ESG) fund offering. Investors can buy the Vanguard ESG US Stock ETF and ESG International Stock ETF commission-free from the fund issuer. The US stock fund has an estimated expense ratio of 0.12%, while that for global shares stands at 0.15%. Covering over 80% of the US equity market capitalisation and almost 70% of the international equity market cap, the two ETFs exclude companies involved in the production of alcohol, tobacco, gambling, adult entertainment, weapons, fossil fuels, and nuclear power. Companies that do not meet certain diversity criteria, as well as the labour, human rights, anti-corruption, and environmental standards defined by the US Global Compact Principles will also be excluded.

Blackrock has also unveiled an ETF that tracks the performance of companies worldwide that are not involved in the production of weapons as well as meet various diversification and inclusion criteria. The iShares Thomson Reuters Inclusion and Diversity Ucits ETF has an ongoing charge of 0.25%. Separately, Blackrock has launched the iShares Digital Security Ucits ETF that tracks the performance of companies focused on digital security. The ongoing charges of the fund is 0.4%. Both ETFs are listed on London Stock Exchange in US dollars and on Xetra in euros.

State Street Global Advisors, the asset management business of State Street Corporation, has transformed its existing single-country SPDR ETFs that provide exposure to Canada, Germany, Japan and the UK. The newly born ETFs will carry lower expense ratios with new indices as well as names and tickers. The funds will no longer track StrategicFactors smart beta indices, but instead, follow market cap weighted indices designed by German index provider Solactive. 'Investors are seeking traditional market-cap weighted beta indices when adding country-specific international exposures to their portfolios,' said Noel Archard, global head of SPDR Product at State Street Global Advisors.

State Street has also launched the SPDR Solactive Hong Kong ETF that carries an expense ratio of 0.14%. The new fund tracks the Solactive GBS Hong Kong Large and Mid-Cap Index, which is designed to measure the performance of large and mid-cap firms in Hong Kong.

Lyxor Asset Management, owned by Societe Generale, has launched a new robotics and AI ETF. The Lyxor Robotics & AI Ucits ETF tracks a proprietary index created by SG's Thematic Research Team. The benchmark selects the top 150 robotics and AI stocks from 210, which are filtered by the team using a big data process. With such bespoke approach, Lyxor aims to capture companies that would not appear in a traditional robotics selection with its new ETF, for example, reaching beyond the firms involved in the development of robotics and AI to include also those that use such technologies in their businesses. The asset manager said its new fund tracks an index that holds 50 to 70% more stocks compared to other ETFs in Europe.