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   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   success   that   this   total   will   with   year

| More

FXL Crosses Above Key Moving Average Level
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Technology AlphaDEX Fund ETF (FXL) crossed ...

Shares of DXKW Now Oversold
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the WisdomTree Korea Hedged Equity Fund ETF (DXKW) entered ...

GMM Crosses Above Key Moving Average Level
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the SPDR: SYSTEM ERROR ETF (GMM) crossed above their ...

EEMA Makes Notable Cross Below Critical Moving Average
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Emerging Markets Asia ETF (EEMA) crossed ...

Proshares Short MSCI Emerging Markets (EUM) Shares Cross Below 200 DMA
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Proshares Short MSCI Emerging Markets ETF (EUM) crossed ...

Intuitive Surgical Takes Over #184 Spot From International Flavors & Fragrances
Fri, Oct 24, 11:54 AM ET, by ETF Channel

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

EWRI Crosses Below Key Moving Average Level
Fri, Oct 24, 11:24 AM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim Russell 1000 Equal Weight ETF (EWRI) crossed ...

Shares of RSXJ Now Oversold
Fri, Oct 24, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Russia Small-Cap ETF (RSXJ) entered into oversold territory, ...

PowerShares BuyBack Achievers Portfolio Experiences Big Outflow
Fri, Oct 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PKW, LOW, GM, DTV Exchange traded funds (ETFs) trade just ...

iShares J.P. Morgan USD Emerging Markets Bond ETF Experiences Big Inflow
Fri, Oct 24, 11:14 AM ET, by ETF Channel

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

VB, COO, TRN, MDVN: Large Inflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VB, COO, TRN, MDVN Exchange traded funds (ETFs) trade just ...

XLB, DD, MON, DOW: ETF Inflow Alert
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLB, DD, MON, DOW Exchange traded funds (ETFs) trade just ...

KRE, WAL, TCBI, SBNY: Large Inflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, WAL, TCBI, SBNY Exchange traded funds (ETFs) trade just ...

VHT, CELG, LLY, ACT: Large Outflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VHT, CELG, LLY, ACT Exchange traded funds (ETFs) trade just ...

XLI, DHR, EMR, CMI: Large Outflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLI, DHR, EMR, CMI Exchange traded funds (ETFs) trade just ...

iShares MSCI Mexico Capped ETF Experiences Big Outflow
Fri, Oct 24, 10:54 AM ET, by ETF Channel

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

Proshares Ultra Industrials (UXI) Shares Cross Above 200 DMA
Thu, Oct 23, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares Ultra Industrials ETF (UXI) crossed above their ...

BRXX Crowded With Sellers
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the EGShares Brazil Infrastructure ETF (BRXX) entered into oversold ...

IYJ Crosses Above Key Moving Average Level
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Industrials ETF (IYJ) crossed above their ...

First Trust South Korea AlphaDEX Fund Breaks Above 200-Day Moving Average - Bullish for FKO
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust South Korea AlphaDEX Fund ETF (FKO) ...

Stericycle Moves Up In Analyst Rankings, Passing Anadarko Petroleum
Thu, Oct 23, 12:34 PM ET, by ETF Channel

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

Vanguard Industrials (VIS) Shares Cross Above 200 DMA
Thu, Oct 23, 11:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Vanguard Industrials ETF (VIS) crossed above their 200 ...

BRF Crowded With Sellers
Thu, Oct 23, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the Brazil Small-Cap ETF (BRF) entered into oversold territory, ...

Shares of FBZ Now Oversold
Thu, Oct 23, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Brazil AlphaDEX Fund ETF (FBZ) entered ...

Vanguard Financials ETF Experiences Big Outflow
Thu, Oct 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VFH, COF, BLK, PRU Exchange traded funds (ETFs) trade just ...

IYJ, NSC, PCP, ITW: Large Outflows Detected at ETF
Thu, Oct 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYJ, NSC, PCP, ITW Exchange traded funds (ETFs) trade just ...

SPDR Barclays Convertible Securities ETF Experiences Big Outflow
Thu, Oct 23, 11:14 AM ET, by ETF Channel

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

Insiders Pile Into Holdings of AIRR ETF
Thu, Oct 23, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust RBA American Industrial Renaissance ...

Why Parker Hannifin is a Top Socially Responsible Dividend Stock (PH)
Thu, Oct 23, 8:14 AM ET, by ETF Channel

Parker Hannifin Corp. (PH) has been named a Top Socially Responsible Dividend Stock by Dividend ...

Daily Natural Gas Related Bull 3x Shares (GASL) Enters Oversold Territory
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Natural Gas Related Bull 3x Shares ETF ...

LIT Crowded With Sellers
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Lithium ETF (LIT) entered into oversold territory, changing ...

KOL Crowded With Sellers
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Coal ETF (KOL) entered into oversold territory, changing ...

Shares of EEML Now Oversold
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Emerging Markets Latin America ETF (EEML) ...

ANGL Crosses Above Key Moving Average Level
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Fallen Angel High Yield Bond ETF (ANGL) crossed ...

Affiliated Managers Group Takes Over #9 Spot From Actavis
Wed, Oct 22, 1:44 PM ET, by ETF Channel

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

INKM Crosses Above Key Moving Average Level
Wed, Oct 22, 11:44 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR SSgA Income Allocation ETF (INKM) crossed above ...

MDYV Crosses Above Key Moving Average Level
Wed, Oct 22, 11:34 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR S&P 400 Mid Cap Value ETF (MDYV) ...

SRTY Makes Notable Cross Below Critical Moving Average
Wed, Oct 22, 11:34 AM ET, by ETF Channel

In trading on Wednesday, shares of the Proshares UltraPro Short Russell2000 ETF (SRTY) crossed below ...

CSJ: ETF Outflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

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

Proshares Short QQQ Experiences Big Inflow
Wed, Oct 22, 11:14 AM ET, by ETF Channel

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

IVW, AMZN, PG, DIS: Large Inflows Detected at ETF
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVW, AMZN, PG, DIS Exchange traded funds (ETFs) trade just ...

VIS, HON, FDX, GD: ETF Outflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VIS, HON, FDX, GD Exchange traded funds (ETFs) trade just ...

FXG, KR, PPC, STZ: ETF Inflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXG, KR, PPC, STZ Exchange traded funds (ETFs) trade just ...

18.2% of XOP Holdings Seeing Recent Insider Buys
Wed, Oct 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Exploration ...

XHE Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Health Care Equipment ETF (XHE) crossed ...

JPX Makes Notable Cross Below Critical Moving Average
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares UltraShort MSCI Pacific ex-Japan ETF (JPX) crossed ...

SPDR Russell 1000 (ONEK) Shares Cross Above 200 DMA
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Russell 1000 ETF (ONEK) crossed above their ...

MDIV Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

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

BBRC Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the EGShares FTSE Beyond BRICs ETF (BBRC) crossed above ...

PFI Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DWA Financial Momentum Portfolio ETF (PFI) crossed ...

Related videos | all videos »
  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 - 2014, 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 over 1000 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.