KFA Funds launches first US-listed carbon emission allowances ETF

Latest news

KFA launches carbon credit ETF

Krane Funds Advisors has announced the launch of the KFA Global Carbon ETF (KRBN US) on NYSE Arca. Sub-advised by environmental finance boutique Climate Finance Partners, the fund provides exposure to cap-and-trade carbon emission allowances by taking long positions in carbon credit futures. It is linked to the IHS Markit Global Carbon Index and represents a new investable tool for hedging risk and going long the price of carbon while supporting responsible investing. “This is a historic fund for global ESG investors,” said Jonathan Krane, CEO of Krane Funds Advisors. “KRBN is the first US-listed ETF to combine the largest carbon allowance markets into a single investable fund.”

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Introducing the Alerian Midstream Energy Dividend UCITS ETF
- Thursday 13 August | 3:00 PM (BST) | 4:00 PM (CEST)

Alerian's Stacey Morris, Director of Research, and Bryce Bingham, Energy Research Analyst, will provide expert insight into the North American midstream energy sector and the opportunities it presents for investors.

• An overview of the midstream energy sector
• The business operations and economics of midstream companies
• Understanding MLPs and C-Corps
• The outlook for the midstream in a fundamentally changed energy market
• Assessing the portfolio benefits of midstream companies
• An introduction to the Alerian Midstream Energy Dividend UCITS ETF (MMLP)

Register for webcast

Latest news

Alerian makes European debut with energy infrastructure ETF

Alerian makes European debut with North American midstream energy dividend ETF

Alerian, the MLP and energy infrastructure industry’s foremost research and indexing firm, has made its UCITS ETF debut on London Stock Exchange with the launch of the Alerian Midstream Energy Dividend UCITS ETF (MMLP LN). The fund provides exposure to North American midstream energy infrastructure assets and is available in US dollar (MMLP LN) and pound sterling (PMLP LN) share classes. It has been brought to market in partnership with London-based white-label ETF provider, HANetf. David LaValle, CEO at Alerian, commented, “The launch of MMLP demonstrates European investors’ interest in exposure to North American midstream energy infrastructure. We are excited about our partnership with HANetf and our joint innovation to answer investors’ call for yield and income.”

Jonathan Krane, CEO of KraneShares

KraneShares partners with MSCI on China ESG Leaders ETF

Krane Funds Advisors has launched the KraneShares MSCI China ESG Leaders ETF (KESG US) – a socially responsible Chinese equity ETF that invests in companies with high environmental, social, and governance ratings relative to their sector peers. Jonathan Krane, CEO of KraneShares, said, “Across markets and strategies, investments with high ESG ratings have become a priority to many investors – China is no exception. We are proud to partner with MSCI, a global leader in ESG indexing, to deliver a China-focused ESG strategy to our clients.”

Gold ETFs prosper as bullion approaches $2,000

Gold ETFs prosper as price flirts with $2,000/oz mark

ETFs providing exposure to gold are prospering from strong returns and record inflows as investor nerves spur gold allocation increases, pushing the price of the metal to record highs. The SPDR Gold Shares (GLD US), the world’s largest gold ETF, has led the pack, growing to more to $77.9bn in assets under management and surpassing its previous AUM high-water mark set in 2012.

DWS launches ESG-screened short-term EUR corporate bond ETF

DWS launches ESG-screened short-term EUR corporate bond ETF

DWS has unveiled a new socially responsible ETF in Europe providing exposure to euro-denominated, short-term bonds from corporate issuers. The Xtrackers ESG EUR Corporate Bond Short Duration UCITS ETF (XZE5 LN) has listed on the London Stock Exchange in pound sterling and comes with an expense ratio of 0.16%.

Fixed Income

ESG investors demand innovation in fixed income ETFs, finds Tabula

Investors demand innovation in fixed income ESG ETFs, finds Tabula

Professional investors are seeking a greater level of environmental, social, and governance (ESG)-focused product development in fixed income ETFs, according to research commissioned by specialist fixed income ETF provider Tabula Investment Management. In a survey of 120 professional European investors, the vast majority of respondents demanded further innovation in the segment including broader coverage of exposures and more transparency around fund impact. Michael John Lytle, CEO of Tabula, commented, “Creating innovative ESG ETFs that meet investor needs is a challenge for providers and one that Tabula is actively embracing.”

Franklin Templeton launches actively managed ultra-short bond ETF

Patrick O’Connor, global head of ETFs at Franklin Templeton Investments.

Franklin Templeton has expanded its range of actively managed fixed income ETFs with the launch of an ultra-short bond fund. The Franklin Liberty Ultra Short Bond ETF (FLUD US) has listed on NYSE Arca and comes with an expense ratio of 0.15%. Patrick O’Connor, Global Head of ETFs for Franklin Templeton, said, “FLUD provides investors with diversification in the ultra-short investment category and seeks a higher yield potential than traditional cash investments with limited additional risks.”

Commodities

Silver – A phoenix rising from the ashes

Nitesh Shah Director Research WisdomTree

By Nitesh Shah, Director, Research, WisdomTree.

According to our internal models, we expect silver prices to rise close to 30% in the year to Q2 2021, outpacing our gold forecast of 18% over that same time frame. It won’t be enough to reset the relationship between the two metals back to ‘normal’ levels, but silver has clearly awoken after a period in dormancy.

Invesco launches GBP-hedged version of $11.8bn physical gold ETC

Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco

Invesco has launched a sterling-hedged version of its blockbuster physical gold ETC. Chris Mellor, Head of ETF Equity and Commodity Product Management at Invesco, said, “Many investors this year have told us they want exposure to the gold price but not the currency risk attached to a US dollar asset. We are now able to offer these investors currency-hedged versions of the Invesco Physical Gold ETC, our largest exchange-traded product in Europe.”

Alternatives / Multi-Asset

FiCAS launches world’s first actively managed crypto ETP on SIX

Ali Mizani Oskui, Founder of FiCAS

FiCAS, a Swiss crypto investment management boutique, has launched the world’s first actively managed crypto ETP on SIX Swiss Exchange. The Bitcoin Capital Active ETP (BTCA SW) seeks long-term capital appreciation by trading the top 15 cryptocurrencies by market capitalization with the flexibility to move into fiat currencies when considered prudent. Ali Mizani Oskui, Founder of FiCAS, said, “Devising the world’s first actively managed crypto ETP marks an important milestone in our effort to deliver enhanced market returns for our clients over time.”

CSOP launches Hong Kong’s first leveraged and inverse China A-shares ETPs

CSOP launches Hong Kong’s first leveraged and inverse China A-shares ETPs

CSOP Asset Management has unveiled two new ETPs in Hong Kong that are the territory’s first to provide leveraged and inverse exposure to Chinese A-shares. The CSOP CSI 300 Index Daily (2x) Leveraged Product (7233 HK) and CSOP CSI 300 Index Daily (-1x) Inverse Product (7333 HK) have listed on the Stock Exchange of Hong Kong and come with expense ratios of 1.99%.

Equities

SSGA launches ESG version of flagship SPDR S&P 500 ETF

SSGA launches ESG version of flagship SPDR S&P 500 ETF

State Street Global Advisors has launched a new ETF that offers a socially responsible alternative to the $290 billion SPDR S&P 500 ETF (SPY US), its flagship ETF, and the largest ETF globally. The SPDR S&P 500 ESG ETF (EFIV US) has listed on NYSE Arca and comes with an expense ratio of 0.10%. Sue Thompson, Head of SPDR Americas Distribution, commented, “EFIV meets growing demand for cost-effective solutions that help put ESG investing into action by offering investors an ETF that seeks to track a more sustainable version of one of the most renowned benchmarks in the world.”

Credit Suisse launches global min-vol ESG ETF

Credit Suisse expands ESG suite with global min vol ETF

Credit Suisse Asset Management has launched a new equity ETF that combines a global minimum volatility investment approach with environmental, social, and governance (ESG) criteria. The CSIF IE MSCI World ESG Leaders Minimum Volatility Blue UCITS ETF has listed on SIX Swiss Exchange in US dollars (WDMVO SW) and on Deutsche Börse Xetra in euros (CSY9 GR).

Franklin Templeton unveils Paris-aligned low carbon ETFs

Julie Moret, Global Head of ESG, Franklin Templeton

Franklin Templeton has unveiled two new ETFs in Europe that provide exposure to European and US equity markets while tracking low carbon indices designed in accordance with the Paris Agreement – a framework to limit global warming to below 2°C. Julie Moret, Global Head of ESG, Franklin Templeton, said, “The EU Climate Benchmark regulation suggests we will see a significant uplift in the adoption of climate-aligned investments across European markets with investors moving away from the notion that they are niche products to building portfolios with sustainable finance at their core.”

ETF and Index News

HANetf powers past $500m AUM milestone

Nik Bienkowski, co-Founder and co-CEO, HANetf

White-label ETP platform HANetf has surpassed $500 million in assets under management, less than two years after the firm listed its debut ETF. “We’re proud to have hit another significant milestone so rapidly,” said Nik Bienkowski, co-Founder and co-CEO at HANetf. “HANetf has demonstrated that asset managers can bring their ideas, compete, and succeed in the European ETF market without the highs costs and distribution challenges that come with starting an ETF business from scratch.”

Have active managers excelled in the current environment?

Matthew J Bartolini, Head of SPDR Americas Research

By Matthew J. Bartolini, Head of SPDR Americas Research, State Street Global Advisors.

Proponents of active strategies often point to the ability of active managers to rotate into defensive segments or increase cash positions during market downturns as a key reason why they continue to use such strategies within portfolios.

ETFs: Passing the Covid-19 stress test

Jason Xavier, Head of EMEA ETF Capital Markets at Franklin Templeton Investments.

By Jason Xavier, Head of EMEA ETF Capital Markets at Franklin Templeton Investments.

The coronavirus pandemic has brought validity to what feels like a 30-year initiation for the ETF wrapper. In the past few months, we’ve seen the ETF ecosystem demonstrate resilience and robustness in continuing to provide clients with the ability to adjust their portfolios intraday and in real-time.