Yet Another Blockchain ETF

USA

Metaurus lists two S&P 500 trackers of sorts

Metaurus Advisors, a new issuer based in New York, is listing two funds that give S&P 500 exposure with a twist. The Metaurus US Equity Cumulative Dividends Fund (IDIV) aims to give the performance of dividends paid out on companies in the S&P, while giving them the option not to hold equity in S&P companies.  The Metaurus US Equity Ex-Dividend Fund (XDIV) does something of the opposite, giving exposure to the performance of the S&P without dividends.

 

IDIV tracks the Solactive Dividend Index and invests exclusively in S&P 500 Dividend Futures Contracts. The value of the S&P 500 Dividend Futures Contracts, on which the value of the Dividend Fund will be based, will increase if the dividends paid (or expected to be paid) by S&P 500 constituent companies increases, and decrease if expectations decline.

 

XDIV tracks the Solactive US Cumulative Ex-Dividend Index, providing investors with returns “that are equivalent to the performance of 0.5 shares of SPY less the value of current and future expected ordinary cash dividends,” the prospectus says. It does this by owning long positions in quarterly S&P 500 Index futures contracts traded on the Chicago Mercantile Exchange. 

 

Analysis

 

These two listings are something of a new frontier for in the fast-growing alternative ETFs space. It should be noted at the start that neither of these funds is an ETF as such. Both are structured as commodity pools, and invest in futures contracts. Neither is intended for retail investors looking for a safe fund to hold long term. Rather, one imagines they are intended as instruments allowing investors to speculate on the capital growth or dividend expectations of the S&P. 

 

First Trust lists blockchain ETF

The bitcoin bubble has all but burst – but the blockchain bubble is going strong. First Trust is listing a new ETF that gives exposure to blockchain technology, the First Trust Indxx Blockchain ETF (LEGR).

 

LEGR tracks an Indxx index that tracks companies exposed to blockchain. According to the prospectus, the index sorts companies into three levels based on how exposed to blockchain they are. Those put on the same level are weighted equally.

 

The top tier, called “Active Users”, gets 50% of the index. It identifies companies that are already using blockchain or offering services or products based on it.

The mid tier is called “Active Supporters” and takes up 30% of the index. It covers companies that are supporting or buying things from other companies that are active users of blockchain. Entry for this tier is low: to qualify, companies can simply have a press release mentioning blockchain. 

The bottom tier is called “Active Explorers”, which takes 20% of the index. To qualify for this tier, companies only have to have stated an interest in blockchain.

 

Taiwan

Fubon lists bank bond policy ETF

Taiwan’s Fubon is listing a new ETF that tracks “China Policy Bank Bond”. I’m not sure what that is. The new ETF is called Fubon China Policy Bank Bond ETF (00718B). I’ll update this when I know more. 

 

China

Guangfa lists media ETF

One of China’s top ETF issuers banking giant Guangfa is listing what appears to be a sectoral ETF that tracks CSI-listed companies involved in media, the Guangfa CSI Media Index Investment Fund (512980). As with the Taiwanese ETF listed above I cannot find any issuer-sponsored English language material on this fund.