Wisdomtree Put Call

USA

WisdomTree lists another put option ETF

Independent issuer WisdomTree is listing a new alternative ETF that uses a call-put strategy (buy-write, in the UK). The WisdomTree CBOE Russell 2000 PutWrite Strategy Fund (RPUT) will sell put options on Russell 2000 stocks and invest the gains in short-term T-bills, the prospectus says.

RPUT is passive and tracks a purpose-built index that reflects, in effect, a collateralised put options selling strategy. The fund makes its money from the premiums charged on the put options. This means the fund makes a solid return when the market flatlines. But suffers a double-loss when the market falls as the portfolio it holds falls in value and then it has to pay out on the puts if the market falls below the strike price. This makes RPUT an ETF for those who think the Russell 2000 will flatline. (Those who believe the market will skyrocket should obviously invest in the Russell 2000 itself!).

RPUT joins the growing list of covered call ETFs and will complement WisdomTree’s $314m S&P 500 PutWrite Strategy ETF (PUTW). PUTW is pretty much the same as RPUT but with a different index.

Germany

JP Morgan cross-lists bond ETFs

JP Morgan is cross-listing its bond ETFs into Germany. They are:

  • JP Morgan USD Emerging Markets Sovereign Bond UCITS ETF (JPBM)
  • JP Morgan USD Ultra-Short Income UCITS ETF (JPPS)

JPBM, which was listed in London last week, tracks emerging market bonds via a JP Morgan index (the same index infact that Europe’s most popular bond ETF, BlackRock’s SEMB uses).

JPPS tracks very short term (one month or less) US dollar denominated debts. It is actively managed.

Taiwan

Fubon adds another smart beta ETFs

One of Taiwan’s biggest issuers Fubon is listing a new smart beta ETF. The Fubon Dow Jones Taiwan High-Quality Dividend 30 ETF (00730) will track the performance of the Dow Jones Taiwan High Quality Dividend 30 Index, which picks Taiwanese companies based on their predicted dividend yield.