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. Mutual Funds & ETFs

    ETF Analysis: First Trust Dow Jones Global Sel Div

    Find out about the First Trust Dow Jones Global Select Dividend Index Fund, and learn detailed information about characteristics and suitability of the fund.
  2. Mutual Funds & ETFs

    ETF Analysis: U.S 12 Month Natural Gas

    Learn about the United States 12 Month Natural Gas Fund, an exchange-traded fund that invests in 12-month futures contracts for natural gas.
  3. Mutual Funds & ETFs

    ETF Analysis: iShares Floating Rate Bond

    Explore detailed analysis and information of the iShares Floating Rate Bond ETF, and learn how to use this ETF as a defense against rising interest rates.
  4. Mutual Funds & ETFs

    ETF Analysis: ProShares UltraPro Short S&P500

    Find out information about the ProShares UltraPro Short S&P 500 exchange-traded fund, and learn detailed analysis of its characteristics and suitability.
  5. Mutual Funds & ETFs

    ETF Analysis: SPDR Barclays Investment Grd Fl Rt

    Learn more about the SPDR Barclays Investment Grade Floating Rate Fund, which tracks an index of highly rated floating debt securities.
  6. Mutual Funds & ETFs

    ETF Analysis: ALPS Medical Breakthroughs

    Learn more about a unique and innovative exchange-traded fund (ETF) in the biotechnology industry: the ALPS Medical Breakthroughs Fund.
  7. Mutual Funds & ETFs

    ETF Analysis: iShares US Healthcare

    Learn about the iShares U.S. Healthcare exchange-traded fund, which invests in a wide range of health care providers, hospitals and home care facilities.
  8. Markets

    The 5 Biggest Chinese Natural Gas Companies

    Read about the top five Chinese natural gas companies as measured by gas production volume and learn a little more about their business operations.
  9. Mutual Funds & ETFs

    Top 5 Japan Mutual Funds

    Discover five of the most popular and best-performing mutual funds offering investors direct exposure to equities of Japanese companies.
  10. Markets

    The 5 Biggest Chinese Insurance Companies

    Read about the top Chinese insurance companies by market capitalization, and learn a little about their positions in the marketplace.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  4. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  5. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  6. Sucker Yield

    When an investor has essentially risked all of his capital for ...
RELATED FAQS
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!