4 Big ETF Launches Of Third-Quarter 2017

Financials, industrials, and consumer discretionary are the top three sectors. It also trades in a paltry volume of less than 1,000 shares, suggesting wide bid/ask spread.

The Main Sector Rotation ETF (SECT - Free Report)

This ETF was launched on Sep 5 and has been able to manage $172.3 million in its asset base so far. It is an actively managed ETF that seeks to achieve its objective through dynamic sector rotation. Sector selection is optimized by carefully reviewing the sector, industry, and sub-industries in the fund’s portfolio and allocating to sectors that appear undervalued and are poised to respond favorably to financial market catalysts. As such, SECT is an ETF of ETFs with (XLK - Free Report) , (XLV - Free Report) and (XLF - Free Report) taking the top three positions at 18%, 15.5% and 14.7%, respectively.

The fund seeks to outperform the S&P 500 in rising markets while limiting losses during periods of decline. Average daily volume is solid at 539,000 shares while expense ratio of 0.65% is a bit high.

DeltaShares S&P 400 Managed Risk ETF (DMRM - Free Report)

This ETF tracks the S&P 400 Managed Risk 2.0 Index, which is designed to measure U.S. mid-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets. It has gathered about $122.6 million in its asset base since its inception on Jul 31. It holds 403 securities in its basket with none holding more than 0.7% of assets.

Technology, financials, industrials, consumer discretionary and real estate are the top sectors accounting for double-digit exposure each. Volume does not seem to be an issue for the ETF as it exchanges nearly 305,000 shares a day on average.

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