Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Grail Launches Two Active Bond ETFs

Fri, Jan 29, 10:16 AM ET, by Michael Johnston

Grail Advisors, known in the ETF world as the issuer responsible for the first actively-managed ETF that allowed managers total discretion, announced today the launch of two actively-managed fixed income ETFs. The Grail McDonnell Intermediate Municipal Bond ETF (GMMB) and the Grail McDonnell Core Taxable Bond ETF (GMTB) began trading on the NYSE Arca Exchange on Friday, bringing the total number of ETFs in Grail’s product line to seven.

Grail Advisors will serve as the manager for both funds with Chicag0-based McDonnell Investment Management sub-advising both funds. The muni bond ETF will seek outperform the Barclays Capital 3-15 Year Municipal Bond Index by identifying opportunities among states, sectors, securities, and exploiting the changing shape of the yield curve. The taxable bond ETF will be an actively-managed alternative to existing total bond market funds. GMTB is benchmarked to the Barclays Capital Aggregate Bond Index, which is also linked to total bond funds from Vanguard (BND) and iShares (AGG).

Both new funds will charge a net expense ratio of 0.35%, extremely low for an actively-managed ETF. But this cost structure still leaves a big “alpha gap” that must be filled in order to be competitive with passively-indexed competitors. BND charges just 0.14%, meaning that GMTB must consistently beat its benchmark by 20 basis points per year. The iShares S&P National AMT-Free Municipal Bond Fund (MUB) charges 0.25%, essentially putting GMMB in a 10 basis point hole from the start.

Slow Start For Active ETFs

Grail broke on to the ETF scene last year with the launch of the Grail American Beacon Large Cap Value ETF (GVT), the first actively-managed ETF to allow manager discretion in the selection of holdings (PowerShares launched a line of active ETFs in 2008 that utilize proprietary stock-ranking methodologies to determine holdings). At the time, the “Grail Fund” was touted by many in the industry (including ETF Database) as a gamechanger that would open the floodgates to a wave of active ETFs.

Grail ETF Assets
TickerInceptionAssets ($M)
GVT5/09$3
RPX10/09$3
RWG10/09$3
RPQ10/09$3
RFF10/09$3
Source: December NSX Data

But the market’s reception of actively-managed ETFs equity has been been tepid. At the end of 2009 GVT had only about $3 million in assets, as did four other actively-managed funds launched in October.

Active ETFs in the fixed income space have seen much more success. PIMCO introduced two actively-managed bond funds last year, including a short maturity strategy fund (MINT) and muni bond fund (MUNI). These ETFs took in about $50 million in cash in 2009, and have continued to grow this year.

Of course part of PIMCO’s success is attributable to the bond giant’s reputation and market leader status, something Grail’s funds won’t necessarily have. McDonnell has a long and impressive track record in the bond management business, but the name doesn’t carry the same weight as PIMCO in the investment community.

The addition of GMMB and GMTB brings the total for new fund launches in January to 23, putting the industry on pace to more than double last year’s new product output. See a summary of all the month’s fund launches and sign up for the free ETF newsletter to get updates on all new ETF launches.

Disclosure: Long BND.


SDI Glossary: "Asset" Definition
SDI Glossary: "Bond" Definition
SDI Glossary: "Exchange" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "iShares" Definition
SDI Glossary: "NYSE" Definition
SDI Glossary: "NI" Definition
This Article's Word Cloud:   Active   Advisors   Bond   Capital   ETFs   Fund   GMMB   GMTB   Grail   McDonnell   Municipal   PIMCO   about   active   actively   adsbygoogle   bond   both   charges   discretion   fixed   from   fund   funds   have   holdings   iShares   including   income   industry   last   launch   launched   launches   line   managed   manager   market   million   more   muni   must   product   putting   that   this   total   will   with   year

| More

UST Crowded With Sellers
Fri, Dec 9, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the ProShares Ultra 7-10 Year Treasury ETF (UST) entered ...

CMBS Crosses Critical Technical Indicator
Fri, Dec 9, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iShares CMBS ETF (CMBS) entered into oversold territory, ...

IBDO Crowded With Sellers
Fri, Dec 9, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iBonds Dec 2023 Term Corporate ETF (IBDO) entered ...

Coach Takes Over #128 Spot From Ball
Fri, Dec 9, 11:55 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

PCY: ETF Outflow Alert
Fri, Dec 9, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PCY Exchange traded funds (ETFs) trade just like stocks, but ...

URA Makes Bullish Cross Above Critical Moving Average
Fri, Dec 9, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Uranium ETF (URA) crossed above their 200 day ...

El Pollo Loco Holdings Reaches Analyst Target Price
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of El Pollo Loco Holdings Inc (LOCO) have crossed above the ...

WSTC Crosses Above Average Analyst Target
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of West Corp. (WSTC) have crossed above the average analyst 12-month ...

Synergy Resources Reaches Analyst Target Price
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of Synergy Resources Corp (SYRG) have crossed above the average analyst ...

RUTH Crosses Above Average Analyst Target
Fri, Dec 9, 10:14 AM ET, by ETF Channel

In recent trading, shares of Ruth's Hospitality Group Inc (RUTH) have crossed above the average ...

MBUU Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Malibu Boats Inc (MBUU) have crossed above the average analyst ...

Chefs' Warehouse Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Chefs' Warehouse Inc (CHEF) have crossed above the average analyst ...

DENN Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Denny's Corp (DENN) have crossed above the average analyst 12-month ...

ASNA Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Ascena Retail Group Inc (ASNA) have crossed above the average ...

Abercrombie & Fitch Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Abercrombie & Fitch Co. (ANF) have crossed above the average ...

Plantronics Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Plantronics, Inc. (PLT) have crossed above the average analyst 12-month ...

WNEB Crosses Above Average Analyst Target
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Western New England Bancorp Inc (WNEB) have crossed above the ...

ZELTIQ Aesthetics Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of ZELTIQ Aesthetics Inc. (ZLTQ) have crossed above the average analyst ...

Littelfuse Reaches Analyst Target Price
Fri, Dec 9, 9:14 AM ET, by ETF Channel

In recent trading, shares of Littelfuse, Inc. (LFUS) have crossed above the average analyst 12-month ...

Chevron a Top 25 Dividend Giant With 3.76% Yield (CVX)
Fri, Dec 9, 8:54 AM ET, by ETF Channel

Chevron Corporation (CVX) has been named as a Top 25 ''Dividend Giant'' by ETF Channel, ...

DGRE Crosses Above Key Moving Average Level
Thu, Dec 8, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree Emerging Markets Quality Dividend Growth Fund ETF ...

PWB, VMW, APH, AMAT: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: PWB, VMW, APH, AMAT Exchange traded funds (ETFs) trade just ...

FDN, YHOO, EBAY, EXPE: ETF Outflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FDN, YHOO, EBAY, EXPE Exchange traded funds (ETFs) trade just ...

USDU: ETF Outflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: USDU Exchange traded funds (ETFs) trade just like stocks, but ...

SPHB, CHK, WMB, MRO: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SPHB, CHK, WMB, MRO Exchange traded funds (ETFs) trade just ...

XBI, IONS, TSRO, EXEL: Large Outflows Detected at ETF
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XBI, IONS, TSRO, EXEL Exchange traded funds (ETFs) trade just ...

IVE, USB, TWX, AIG: ETF Inflow Alert
Thu, Dec 8, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, USB, TWX, AIG Exchange traded funds (ETFs) trade just ...

12.8% of JXI Holdings Seeing Recent Insider Buys
Thu, Dec 8, 10:14 AM ET, by ETF Channel

A look at the weighted underlying holdings of the iShares Global Utilities ETF (JXI) shows ...

IWF's Underlying Holdings Could Mean 11% Gain Potential
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The SSW Paradox: Analysts Bearish But Forecast 37.57% Gains
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

The TSLA Paradox: Analysts Bearish But Forecast 22.36% Gains
Thu, Dec 8, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

First Foundation Reaches Analyst Target Price
Thu, Dec 8, 9:24 AM ET, by ETF Channel

In recent trading, shares of First Foundation Inc (FFWM) have crossed above the average analyst ...

Imperial Oil Reaches Analyst Target Price
Thu, Dec 8, 9:24 AM ET, by ETF Channel

In recent trading, shares of Imperial Oil Ltd (IMO) have crossed above the average analyst ...

Ternium Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Ternium S A (TX) have crossed above the average analyst ...

SAVE Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Spirit Airlines Inc (SAVE) have crossed above the average analyst ...

First Potomac Realty Trust Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of First Potomac Realty Trust (FPO) have crossed above the average ...

CAVM Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Cavium Inc (CAVM) have crossed above the average analyst 12-month ...

TEN Crosses Above Average Analyst Target
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Tenneco Inc (TEN) have crossed above the average analyst 12-month ...

Lear Reaches Analyst Target Price
Thu, Dec 8, 9:14 AM ET, by ETF Channel

In recent trading, shares of Lear Corp. (LEA) have crossed above the average analyst 12-month ...

Why AvalonBay Communities is a Top Socially Responsible Dividend Stock (AVB)
Thu, Dec 8, 8:14 AM ET, by ETF Channel

AvalonBay Communities, Inc. (AVB) has been named a Top Socially Responsible Dividend Stock by Dividend ...

United Bankshares a Top Ranked SAFE Dividend Stock With 2.8% Yield (UBSI)
Thu, Dec 8, 8:14 AM ET, by ETF Channel

United Bankshares Inc (UBSI) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying ...

XOM a Top 25 Dividend Giant With $19.75B Held By ETFs
Thu, Dec 8, 8:14 AM ET, by ETF Channel

Exxon Mobil Corp (XOM) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Daily S&P 500 Bear 3x Shares (SPXS) Enters Oversold Territory
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily S&P 500 Bear 3x Shares ETF (SPXS) ...

SPXU Crosses Critical Technical Indicator
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares UltraPro Short S&P500 ETF (SPXU) entered into ...

IEV Crosses Above Key Moving Average Level
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Europe ETF (IEV) crossed above their 200 ...

EWP Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Spain Capped ETF (EWP) crossed above ...

PIN Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares India Portfolio ETF (PIN) crossed above their ...

iShares MSCI Sweden Breaks Above 200-Day Moving Average - Bullish for EWD
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Sweden ETF (EWD) crossed above their ...

IEUR Crosses Above Key Moving Average Level
Wed, Dec 7, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Core MSCI Europe ETF (IEUR) crossed above ...

MDIV Makes Bullish Cross Above Critical Moving Average
Wed, Dec 7, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) crossed ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Grail Launches Two Active Bond ETFs | Self Directed Investor | Copyright © 2008 - 2016, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.