ETF Series Solutions announces plans for three new ETFs

By Toni Weeks

San Diego, Feb. 17 - ETF Series Solutions announced in an N-1A filing with the Securities and Exchange Commission its plans to offer three new exchange-traded funds.

Denise M. Krisko will be the primary portfolio manager for the funds. She is the chief investment officer of Index Management Solutions, LLC, the funds' subadviser.

The AlphaClone Alternative Alpha ETF will seek to track the price and yield, before fees and expenses, of the AlphaClone Hedge Fund Long/Short Index, which is composed of U.S. equity securities selected using a hedge fund position replication methodology developed by AlphaClone, LLC, the index provider. This methodology ranks hedge funds and institutional investors based on the efficacy of replication their publicly disclosed positions and selects equities from those managers with the highest ranking. The index can vary from being 100% long to up to 50% short based on market volatility targets.

Under normal circumstances, the fund will invest at least 80% of its net assets in the equity securities that comprise the index, which include common and preferred equity securities, depositary receipts, ETFs, real estate investment trusts and master limited partnerships. Remaining funds may be invested in securities that help the fund track the index.

Management fees will be 0.95%. The fund may pay a distribution and service (12b-1) fee of up to 0.25% after the first year of operation.

The fund will trade on the NYSE Arca under the symbol "ALFA."

The Zacks Sustainable Dividend ETF will seek to track the price and yield performance, before fees and expenses, of the Zacks Sustainable Dividend Index, which consists of about 100 U.S.-listed common stocks selected from 1,500 of the largest listed equity companies that pay dividends at least annually. Under normal circumstances, at least 90% of the fund's total assets will be invested in the component securities of the index, with the remainder invested in cash and cash equivalents or other instruments that help the fund to track the index. The index provider is Zacks Investment Research, Inc.

Total annual fund operating expenses will be 0.7%, which consists entirely of a management fee. The fund may pay 12b-1 fees of up to 0.25% after the first year.

The fund will trade on Nasdaq under the symbol "ZDIV."

The Zacks MLP ETF will seek to track the price and yield performance, before fees and expenses, of the Zacks MLP Index, which is comprised of 25 to 50 stocks selected from a universe of MLPs listed on domestic exchanges. The MLPs are selected using a quantitative rules-based methodology developed by Zacks.

Total annual fund operating expenses will be 0.75%, which consists entirely of a management fee. The fund may pay 12b-1 fees of up to 0.25% after the first year.

The fund will trade on the Nasdaq under the symbol "ZMLP."

Oklahoma City-based Exchange Traded Concepts LLC will serve as the investment adviser for all three funds.

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