ETF launches of the week: ENCO, ZHDG, MJXL

North American and European investors saw their range of Exchange Traded Funds (ETFs) grow last week with five new ETFs launched in the United States and six in Europe. We highlight a selection of these new ETF launches to help you stay on top of the latest trends.

Here is what you should know about L&G Multi Strategy Enhanced Commodities UCITS ETF (ENCO), ZEGA Buy & Hedge ETF (ZHDG), and ETFMG 2X Daily Alternative Harvest ETF (MJXL).

Portfolio protection and growth opportunities

With inflation and market uncertainty stalking investors, last week we saw the launches of two ETFs that could help to diversify and protect portfolios.

For European investors, the L&G Multi Strategy Enhanced Commodities UCITS ETF (ENCO) can help them to diversify the portfolio and gain protection against inflation through commodities.

For North American investors, the ZEGA Buy & Hedge ETF (ZHDG) will seek to protect investors against possible market downruns without removing the exposure to the equity market. On thematic ETFs, investors have a new leveraged opportunity to get twice as high on the cannabis market with the ETFMG 2X Daily Alternative Harvest ETF (MJXL).

Here’s what you need to know about these new ETFs.

Trending recent ETF launches: ENCO ETF, ZHDG ETF and MJXL ETF

1. ENCO – L&G Multi Strategy Enhanced Commodities UCITS ETF

• Launch Date: 08/07/2021
• Provider / Issuer: Legal & General Investment Management (LGIM)
• AUM: $7.99 M
• Expense Ratio: 0.30%
• Domiciliation: Ireland

As inflation remains a concern for investors, Legal & General Investment Management (LGIM) have launched the L&G Multi Strategy Enhanced Commodities UCITS ETF (ENCO). ENCO ETF is a passively managed ETF that aims to track the performance of the Barclays Backwardation Tilt Multi-Strategy Capped Total Return Index. ENCO ETF offers investors diversified exposure to the commodities futures market. With this ETF investors will be available to use commodities as part of a multi-asset portfolio, including diversification and inflation protection. In the short-term correlation between commodities and equities may be high. Over the long term, commodities have shown limited correlation with other asset classes as it may fall when the global economic condition improves.

2. ZHDG – ZEGA Buy & Hedge ETF

• Launch Date: 06/07/2021
• Provider / Issuer: ZEGA Financial
• AUM: $3.01 M
• Expense Ratio: 1.02%
• Domiciliation: United States

To help investors to navigate volatile and uncertain markets through innovative hedging strategies, ZEGA Financial has launched the ZEGA Buy & Hedge ETF (ZHDG). This actively managed ETF seeks to provide exposure to the U.S. large capitalization equity market while mitigating overall market downside risk in the event of a major market decline. ZHDG ETF seeks to capture upside market movement to provide long-term capital appreciation while aiming to limit equity losses to 8-10% in any 12-month period.

3. MJXL – ETFMG 2X Daily Alternative Harvest ETF

• Launch Date: 07/07/2021
• Provider / Issuer: ETF Managers Group
• AUM: $0.57 M
• Expense Ratio: 0.95%
• Domiciliation: United States

In the thematic space, ETF Managers Group has launched the ETFMG 2X Daily Alternative Harvest ETF (MJXL) to offer North American investors leveraged exposure to the global cannabis investment theme. MJXL ETF seeks daily leveraged investment results, before fees and expenses, of two times (2x) or 200% the performance of the Prime Alternative Harvest Index. The ETF provides investors access to the global cannabis ecosystem and benefitting directly from widespread medicinal and recreational legalization initiatives. According to Grand View Research, the global cannabis market is expected to grow at a CAGR of 23.9% and reach $66.3B by 2025 and MJXL ETF has an opportunity to be part of that growth.

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