Industry Updates

iShares lists share buyback ETF

David Tuckwell

Today's ETF listings


BlackRock lists share buyback ETF

BlackRock is listing a new ETF that tracks companies that buy back shares from their shareholders, the iShares US Dividend and Buyback ETF (DIVB).

DIVB will track a Morningstar index of US companies that "return capital to shareholders through either dividend payments or share buybacks," the prospectus says. Companies chosen are those with "the largest dividend and buyback programs," it says. Companies will be weighted by payout, with those with the largest payouts receiving the most weighting. No company can take more than 4.9%.

Virtus lists sophisticated model-based emerging markets liquidity ETF

New York-based Virtus ETF Advisers is listing a new emerging markets ETF that uses three quant models to screen emerging markets countries and their companies for liquidity, the Virtus Glovista Emerging Markets ETF (EMEM).

EMEM's index starts with a shortlist of 15 emerging markets countries: China, Taiwan, South Korea, India, Malaysia, Indonesia, Thailand, Philippines, Russia, South Africa, Poland, Turkey, Brazil, Mexico and Chile.

It then uses a "most favored nations" approach that ranks the 15 countries using three models: a macroeconomic trends model (50% weight); a company-specific model (30% weight); and a momentum model (20% weight), the prospectus says.

The macro trends model looks at: interest rates, yields, currency values, liquidity, and other indicators within each country. The company specific model looks at companies' net debt, total assets, and price-earnings ratios. The momentum model looks at: "absolute and relative price momentum and reversal of momentum based on each country's price index", the prospectus says.

Each countries' rank is then determined by multiplying the rank received within each model by the weight assigned for that model. The top 10 countries are then taken.

After countries are determined, companies within those countries are chosen based on their market capitalisation and average daily trading volume — the higher both figures the more weighting. No more than 50 companies from any one country can be chosen.


Germany, Italy

BNP Paribas cross-lists two SRI ETFs

French banking giant BNP is cross-listing two of its SRI ETFs in Germany and Italy. They are:


  • BNP Paribas Easy MSCI Emerging Markets SRI UCITS ETF (EISR)

Germany, UK

Fidelity lists emerging markets smart beta ETF

Boston-based money managing giant Fidelity is listing a new smart beta ETF in London and Frankfurt, the Fidelity Emerging Markets Quality Income UCITS ETF (FYEM, FEMI*).

The fund will track an index that carries Fidelity's brand name, the Fidelity Emerging Market Quality Income Index (although it appears on the S&P indexes website). The index will compile large and mid-cap companies from emerging market countries that pay higher dividends, "while retaining a broadly neutral industry sector position", the index factsheet says. I cannot find any information about how the quality factor comes in.

*German ticker.

South Korea

Koomkin Bank lists high dividend ETF

Korean banking giant Koomkin bank is listing a new dividend ETF in Seoul, the KB KBSTAR Mid Small Cap High Dividend ETF (281990).

Like many Korean ETFs, the fund will track an index produced by FnGuide, a local index provider and finance research firm. The index the fund will track is the "FnGuide small and medium high-concentration focus index (market price index)". No information on this index is available in English.

For those able to read Korean, more information about the listing can be found here.

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