Australia
ETF Securities lists battery tech ETF
In what might just win the best ticker of 2018 award, ETF Securities is listing a thematic ETF that offers exposure to new battery technology. The ETFS Battery Tech and Lithium ETF (ACDC) will track a Solactive index that targets companies providing “energy storage technology and mining companies that produce metals that are primarily used for manufacturing batteries,” the index factsheet says. The aim of providing battery exposure is to provide “future proofing” for portfolios as well as access to a niche that could benefit from macro trends.
According to a product synopsis, ACDC will also offer something of an environmental and social governance tilt as battery tech is seen as the likely successor to fossil fuel powered engines, as in cars. Fingering through the factsheet, ACDC derives most of its holdings from Japan, followed by the United States. The index is equally weighted.
WCM lists quality growth active ETF
California-based WCM Investment Management is teaming up with Switzer Asset Management to list an actively managed quality and growth ETF. The WCM Quality Global Growth Fund (WCMQ) will try to beat the MSCI All Country World Index ex-Australia.
At this stage, we are unclear how WCMQ will do this. We are also unclear how – if at all – the fund will put on its factor loadings.
On WCMQ’s website, the product description only contains bromides like: “we avoid businesses fighting ‘headwinds’”, “[we provide] risk control through thoughtful diversification,” and “[we] consider how the business fits the portfolio from traditional perspectives such as sector.” While Switzer’s website says the fund screens companies for their “culture”. WCMQ will charge a 1.35% fee. Switzer Asset Management turned down our request for clarification.
USA
Global X lists dynamic multifactor ETF
Global X is listing a new multifactor ETF that will time the market and rotate between factors. The Global X Adaptive US Factor ETF (AUSF) will time the market and rotate between momentum, value and low volatility in the US large and mid cap space. In order to do this, AUSF will move in and out of three Solactive subindexes, where each subindex represents one of the above factors.
We could find no information on how the factors are defined (is value PB or PE? Is momentum relative strength or something else?). The prospectus also provides no information on how the factors are timed, other than hinting at recent performance. AUSF will compete against the Oppenheimer line of dynamic multifactor ETFs, which have been gathering assets.
