Amidst another volatile trading week for equity markets, the product development front continues to buzz with activity as new entrants plan their debuts, while veteran issuers continue to expand their product lineups. Legg Mason, the mutual fund giant and home of legendary manager Bill Miller (at least for a few more weeks), is planning to change gears and enter the exchange-traded universe.
Known for its success in the mutual fund space, Legg Mason recently filed with the SEC to bring to market the company’s first exchange-traded offering. The Baltimore based asset management giant laid the groundwork for a short-term fixed income ETF (see SEC Filing):
- Legg Mason Western Asset Ultra-Short Duration ETF: The proposed product is an actively managed bond fund that will seek to provide investors with current income by investing in U.S. dollar denominated securities. The fund’s underlying portfolio will consist of investment grade money market securities and short-term debt notes including: corporate debt, bank obligations, commercial paper, mortgage-backed securities, as well as U.S. Treasuries and foreign government debt issues. This proposed Legg Mason ETF would be in direct competitions with the PIMCO Enhanced Short Maturity Strategy Fund (MINT), which has over $1.5 billion in assets under management since debuting in late 2009.
- Global X NASDAQ 500 ETF (QQQV): This fund’s underlying index is designed to measure the performance of 500 of the largest domestic and international securities listed on the Nasdaq stock market, excluding exposure to financial service firms and investment companies.
- Global X NASDAQ 400 Mid Cap ETF (QQQM): This ETF will track the performance of 400 mid cap, domestic and international, securities listed on the Nasdaq, and like QQQV, it too will exclude any allocations to financial and investment companies.
- Global X NASDAQ 100 Global Technology Index ETF (QQQT): This cap-weighted ETF will provide investors with exposure to 100 of the largest global technology companies. The fund’s underlying portfolio will feature allocations to computer hardware, software, telecommunication and biotechnology firms.
These tech-centric ETFs may appeal to investors looking to steer clear of financial equities given the ongoing debt drama on both sides of the Atlantic. Each of the products are expected to charge an expense ratio of 0.48%.
Disclosure: No positions at time of writing.
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