With this shortened trading week, economic data releases remain mixed on the home front. ISM data came in weaker than expected on Monday morning, while positive factory orders and better-than-expected motor vehicle sales stole the headlines on Tuesday. Activity on the product development was fairly quiet, with ProShares debuting the much anticipated Short Euro (NYSEARCA:EUFX), and First Trust and Pyxis both gearing up to add to their own product lineups.
Income Comes First
- First Trust Multi-Asset Diversified Income Index Fund: This ETF will be linked to the Nasdaq Multi-Asset Diversified Income Index, which is comprised of common stocks, depository receipts, real estate investment trusts (REITs), preferred stocks and Master Limited Partnerships (MLPs), as well as high-yield corporate bond ETFs. The component securities must meet several criteria including dividends paid for each of the last three years, minimum market cap of $1 billion and a dividend payout ratio of less than or equal to 80% (see also Monthly Dividend ETFdb Portfolio).
- First Trust Nasdaq Technology Dividend Index Fund: This ETF will be linked to the Nasdaq Technology Dividend Index, which is a dividend-value weighted benchmark. This means that the fund will “cherry-pick” those securities with the most attractive payouts, allocating 80% of total assets to technology stocks and the remaining 20% to telecommunications companies. Some of the criteria include the underlying security must have a yield of at least 0.5% and must not have decreased dividend payments over the trailing 12-month period (see also High-Tech ETFdb Portfolio).
Pyxis Jumps into the ETF Market
- Pyxis/iBoxx Liquid Loan ETF (Pending:LQLN): This ETF will seek to replicate the price and yield performance of the Markit iBoxx Liquid Leveraged Loan Index. The underlying basket of holdings will primarily consist of below-investment grade senior loans from domestic and foreign corporations. The appeal behind this class of bonds is that senior loans have a higher recovery rate than other non-investment grade debt securities in the event of a default, giving them a unique risk/return profile (see also 12 High-Yielding Monthly Distribution Bond ETFs).
Disclosure: No positions at time of writing.
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