New Investment Fund Filings Still Strong, ETF-Dominant, According to ISS

Exchange-traded funds continue to dominate the market of new investment funds.

In June, 156 new funds were registered, a decrease from 200 in May but still an elevated period of filings, according to ISS Market Intelligence’s “2024 New Fund Filings Review.” ISS MI, like PLANADVISER, is owned by ISS STOXX.

ETFs continued to dominate the new product proposals with 135 registrations. Other filings included 12 open-end mutual funds, seven interval funds, one closed-end fund and one business development company.

Tuttle Capital Management led the pack with 48 new fund filings, primarily featuring a series of leveraged and inverse single stock ETFs. Themes Management Co. followed with 13 similar ETFs, contributing to the overall trend.

This surge in trading vehicles caused alternatives and commodities to lead as the asset class with the highest number of new filings at 96. U.S. equities followed with 25 new funds.

ETFs have been surging as an investment option in recent years, though they are not very prevalent in defined contribution savings plans, in part because they are subject to intra-day trading. The “2023 PLANSPONSOR Defined Contribution Benchmarking Report” found that 0.4% of retirement plans offer exchange-traded funds in their investment lineup.

U.S. Equity

Among the equity-base funds, 3EDGE Asset Management filed a 3EDGE Dynamic US Equity ETF, focusing on domestic sectors likely to benefit from market shifts, according to the firm. Alpha Architect Funds registered five ETFs, four using an AI-driven stock selection process.

BNY plans a Dynamic Value ETF, targeting value companies with strong fundamentals, primarily large caps. Fidelity is preparing the Enhanced U.S. All-Cap Equity ETF, investing across all market caps. Harbor Capital unveiled the Harbor Active Small Cap ETF, focusing on stocks with competitive advantages.

State Street Global Advisors announced the SPDR SSGA US Equity Premium Income ETF, investing in equities and selling call options.

Fixed Income

In fixed income, 3EDGE Asset Management registered the 3EDGE Dynamic Fixed Income ETF, an actively managed fund focusing on credit quality and duration, potentially acting as a fund of funds. Columbia Threadneedle Investments announced two active high-yield bond ETFs: the Columbia US High Yield ETF, investing in below-investment-grade securities, and the Columbia Short Duration High Yield ETF, targeting shorter maturities.

Alternatives & Commodities

In this category, 3EDGE Asset Management filed the 3EDGE Dynamic Hard Assets ETF, focusing on real assets like commodities and REITs. Advisors Preferred is preparing the Quantified Eckhardt Managed Futures Strategy fund to capture commodity futures trends, supplemented by a fixed-income strategy.

J.P. Morgan registered the Six Circles Multi-Strategy fund, using multiple sub-advisers for various alternative strategies. State Street and Tidal Investments announced cryptocurrency-focused ETFs, while USCF Advisers is readying the USCF Lithium Strategy ETF to invest in lithium futures and related equities.

Closed-End/Interval Funds

Finally, AllianceBernstein’s AB Private Lending fund targets loans to middle-market firms. Central Park Advisers’ Macquarie Energy Transition Infrastructure fund focuses on energy transition investments. First Trust’s FT Vest Total Return Income fund uses a hedged equity strategy. Hamilton Lane Advisors’ fund invests in private infrastructure.