Investors endured another slow trading week with mixed economic data releases on Wall Street, paving the way for another wave of profit-taking. As major equity indexes drifted sideways with a downward bias, several key developments took place on the ETF front; Charles Schwab cut expenses on all 15 of its ETFs while Global X announced it was shuttering the doors on four of its funds. VelocityShares also made a splash on the product development front with its SEC proposal for a basket of ETFs.

Connecticut-based VelocityShareshas filed plans with the SEC to beef up its existing ETN-only lineup with several intriguing ETFs:

  • VelocityShares Tail Risk Hedged Large Cap ETF: This ETF will consist of three underlying index ETFs that track the S&P 500 Index, including SPY, VOO and IVV, while the tail hedge component will consist of two volatility products: the Ultra VIX Short-Term Futures ETF (UVXY) and the Short VIX Short-Term Futures ETF (SVXY). The SEC filing also stated that at each monthly rebalance, the portfolio composition will be split 85/15 among equity and volatility holdings, respectively .
  • VelocityShares Volatility Hedged Large Cap ETF: This ETF will feature the same portfolio composition as the fund profiled above, with the distinguishing factor being how much is allocated to each of the volatility ETFs. The Tail Risk fund will dedicate 45% to UVXY and 55% to SVXY, while this Hedged ETF will dedicate one-third to UVXY and two-thirds to SVXY.
VelocityShares will also look to launch three equity-based strategies :
  • VelocityShares Emerging Markets Depository Receipt ETF: This broad-based ETF will features allocations to equities spanning 21 emerging markets. The top three allocations by country in its underlying index are Brazil, Russia and China.
  • VelocityShares Russia Select Depository Receipt ETF: This ETF will look to track theperformanceof depository receipts of companies located in Russia.
  • VelocityShares Emerging Asia Depository Receipt ETF: This ETF will target developing Asian nations, including: China, South Korea, Taiwan, India, Indonesia and the Philippines.

Follow me on Twitter@SBojinov

Disclosure: No positions at time of writing.

Related Articles
  1. Investing

    Time to Bring Active Back into a Portfolio?

    While stocks have rallied since the economic recovery in 2009, many active portfolio managers have struggled to deliver investor returns in excess.
  2. Chart Advisor

    Now Could Be The Time To Buy IPOs

    There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy.
  3. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  4. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  5. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  6. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  7. Mutual Funds & ETFs

    Buying Vanguard Mutual Funds Vs. ETFs

    Learn about the differences between Vanguard's mutual fund and ETF products, and discover which may be more appropriate for investors.
  8. Mutual Funds & ETFs

    ETFs Vs. Mutual Funds: Choosing For Your Retirement

    Learn about the difference between using mutual funds versus ETFs for retirement, including which investment strategies and goals are best served by each.
  9. Mutual Funds & ETFs

    How to Reinvest Dividends from ETFs

    Learn about reinvesting ETF dividends, including the benefits and drawbacks of dividend reinvestment plans (DRIPs) and manual reinvestment.
  10. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>

You May Also Like

Trading Center