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24 May 2017 By Tom Buerkle

The tradable funds have grown wildly popular as an easy way to play the market. Now sponsors are dialing it up with plans for ETFs tracking asset-backed securities and the first fund to lever stock exposure four times, among others. The frenzy may end with a bang, not a whimper.

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BlackRock’s iShares subsidiary on May 19 filed a registration statement seeking approval from the U.S. Securities and Exchange Commission to launch an exchange-traded fund investing in asset-backed securities backed by auto loans, credit-card debt and student loans.

The proposed iShares ETF would aim to track the performance of the JPMorgan Consumer Core Asset-Backed Securities Index. It would be the first U.S. ETF tied to consumer credit ABS.

On May 2, the SEC approved an application to launch ETFs giving investors a four-times leveraged bet on the S&P 500 Index, although the regulator has put the decision on hold, according to a Wall Street Journal report on May 16, meaning the fund cannot yet start trading.

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