You asked for it, we are delivering.

FRI, OCT 14, 2022

YOUR WEEKLY UPDATE ON TOP ETF TRENDS

A NOTE FROM BOB

You asked for it, we are delivering. Viewers have been wondering how to get access to those juicy 4.4% yields on the 2-year Treasuries, as well as other portions of the Fed's Treasury market. There are new products recently launched that go a long way toward answering those needs. Join us this Monday on ETF Edge when our guests will be John Davi, Founder & Chief Investment Officer of Astoria Portfolio Advisors, and F/m Investments CIO Alexander Morris. Morris has just launched a new series of single-bond Treasury exchange-traded funds — including three ETFs holding US 10-year Treasuries (UTEN), two-year (UTWO), or three-month (TBIL) Treasury bonds and bills. You've heard of single-stock ETFs. Now it's time to learn about single-bond ETFs. Tune in on Monday at 1 PM ET on ETF Edge! ETFedge.cnbc.com

Speaking of bond funds… As investors clamor for heftier yields, the market appears to have shifted over from the TINA (there is no alternative) mentality to the TARA (there are reasonable alternatives) camp. More and more firms are expanding their targeted bond ETF offerings, including Charles Schwab. Schwab just rolled out its new Schwab Municipal Bond ETF (SCMB), which comes with a notable expense ratio of 0.03% — making it the cheapest muni product on the market. Historically, Schwab has not been an active issuer of ETFs, but has certainly picked up the pace with more thematic offerings like crypto and ESG over the past year.

More bitcoin trading backlash. Grayscale is at it again: This time blasting the SEC for rejecting the firm's spot bitcoin ETF proposals with "special harshness." In a new brief sent out earlier this week, Grayscale argues: "In disapproving the proposed spot bitcoin [exchange-traded product] here, the commission applied an exceedingly stringent version of the test — going so far as to make findings that directly contradict findings that it made in its orders approving the bitcoin futures ETPs."

Alternative ETFs taking off. Amid the turbulence of 2022, investor appetite for alternative investments has grown. The iMGP DBi Managed Futures Strategy ETF (DBMF), now one of the top-performing ETFs in 2022, is up 34% year-to-date. It is also the largest alternative ETF out there (more than $1 billion in AUM) and one of the fastest-growing of its kind. DBMF indexes managed futures hedge fund portfolios to eliminate single manager risk and increase diversification — aiming to replicate the portfolios of the top 20 hedge funds without all the high fees, high minimums and volatility that come with a typical hedge fund. The fund has seen roughly $600 million in inflows this year, according to Morningstar.

For more analysis and actionable insights, catch me live this Monday at 1 PM ET on ETF Edge.