BlackRock launches iShares emerging markets value ETF

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BlackRock launches iShares emerging markets value factor ETF

BlackRock has launched a new ETF in Europe providing exposure to emerging market stocks with strong value characteristics. The iShares Edge MSCI EM Value Factor UCITS ETF has been listed on the London Stock Exchange (EMVL LN) and Xetra (5MVL GY) and is linked to the MSCI EM Select Value Factor Focus Index. The index screens the parent MSCI EM universe for stocks with higher exposure to the value style factor.

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Latest news

Bryon Lake, International Head of ETFs at JP Morgan Asset Management

JP Morgan launches three ‘enhanced index’ corporate bond ETFs in Europe

JP Morgan Asset Management has launched three fixed income ETFs in Europe designed to offer a better alternative to traditional passive corporate bond strategies. The funds provide similar risk and portfolio construction characteristics to well-known bond benchmarks but seek an enhanced level of return through limited active management. Bryon Lake, Head of International ETFs at JP Morgan Asset Management, said, “Avoiding uncompensated risks through intelligent sector and security selection can help deliver even stronger risk-adjusted returns.”

Global ETF AUM roars past $5 trillion in November

Global ETF assets roar back above $5 trillion

Assets under management across ETFs and ETPs listed globally surpassed $5 trillion in November amid strong net inflows and positive market movements, according to data from ETF industry consultants ETFGI. The industry previously passed $5tn in AUM in January before February’s turbulent equity markets dragged total assets back below the milestone.

JP Morgan adds emerging markets ETF to ‘enhanced index’ series

JP Morgan adds emerging markets to ‘enhanced’ equity ETF series

JP Morgan Asset Management has expanded its line-up of ‘enhanced’ equity ETFs in Europe with the launch of the JP Morgan Global Emerging Markets Research Enhanced Index Equity (ESG) UCITS ETF. The new EM fund provides similar risk characteristics to its performance benchmark – the MSCI EM – while seeking to provide an enhanced level return through incremental active management.

David Harris, Head of Sustainable Investment at FTSE Russell

FTSE Russell launches green real estate indices

FTSE Russell has unveiled the FTSE EPRA Nareit Green Index series, a new series of real estate indices that tilt towards energy-efficient and renewables-linked properties. David Harris, Head of Sustainable Investment at FTSE Russell, commented, “As the low carbon transition accelerates, it is imperative for investors to navigate climate-related risks and opportunities…the new green real estate index series from FTSE Russell will help the market to drive an ambitious sustainability agenda and provide investors with innovative tools to assist in this transition.”

Fixed Income

How the pros use bond ETFs

Matthew Tucker, Head of iShares Americas Fixed Income Strategy at BlackRock.

By Matthew Tucker, Head of iShares Americas Fixed Income Strategy at BlackRock.

A recent report shows that as bond markets evolve, large institutional investors are finding new ways to use ETFs. Their learnings may be helpful for smaller investors as well.

UniCredit launches European green bonds ETF on Xetra

UniCredit Structured Invest ETFs

UniCredit has announced the launch of the UC MSCI European Green Bond EUR UCITS ETF (ECBI GY), a new ETF on Xetra providing exposure to a broadly diversified portfolio of liquid euro-denominated green bonds from European issuers. Linked to the Bloomberg Barclays MSCI European Green Bond Issuer Capped EUR Index, the fund enables sustainability-conscious investors to access bonds that have been issued to finance projects with direct positive environmental outcomes. Antonio Keglevich, Head of Sustainability Bond Origination, UniCredit, commented, “Having the same risk and yield as common bonds, green bonds provide an added value, which exceeds financial aspects.”

Alternatives / Multi-Asset

VanEck lists nine Think ETFs on Xetra

VanEck cross-lists ThinkCapital ETFs on Xetra

VanEck has cross-listed nine Think ETFs onto Deutsche Börse’s Xetra platform. The ETFs, which maintain primary listings on Euronext Amsterdam, offer a mix of equity, fixed income and real estate exposure and follow VanEck’s acquisition of Netherlands-based ThinkCapital at the beginning of the year.

MVIS and ITI Funds launch crypto index

MVIS and ITI Funds launch crypto index

MV Index Solutions, the indexing division of VanEck, has teamed up with ETF issuer ITI Funds to launch the ITI Funds Crypto Index. The index aims to provide a diversified approach to investing in the cryptocurrency market.

Commodities

OPEC: Déjà vu – No thank you!

Oil WisdomTree ETFs commodities

By Nitesh Shah, Director, Research at WisdomTree.

Brent oil has fallen 23% in the past month. Fears of oil market surplus have driven the slide. The suddenness of the collapse feels eerily similar to the November 2014 experience. However, we believe OPEC will act to stem the decline at its meeting on 6 December 2018, unlike in 2014. The cartel’s experience in the 2014-2016 period was too painful for the group to want to return to an era of weak prices.

The investment case for nickel: In charge with electric vehicles

Aneeka Gupta, Associate Director of Research, WisdomTree.

By Aneeka Gupta, Associate Director of Research at WisdomTree.

Over the next decade, we expect a rapid change on the framework in which we live, moved by trends such as technological innovation and climate change. In this blog we review how the marriage of battery technology and the increasing need of tackling climate change builds the case for electric vehicle adoption.

Equities

DWS lists international and EM ESG ETFs on NYSE

DWS lists international and EM ESG ETFs on NYSE

DWS has expanded its US suite of ESG ETFs with the launch of the Xtrackers MSCI ACWI ex USA ESG Leaders Equity ETF (ACSG US) and Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EMSG US) on the NYSE Arca. “Environmental, social and governance factors have been part of DWS’s core DNA for more than 20 years,” said Fiona Bassett, Global Co-Head of Passive Asset Management and Global Co-Head of Products.

DWS rolls out US banks ETF

Amanda Rebello, DWS Head of Passive Distribution, UK and Ireland

DWS has expanded its sector offering with the launch of the Xtrackers USA Banks UCITS ETF (XUFB LN) on the London Stock Exchange. The fund, which comes with a fee of just 12 basis points, is linked to the MSCI USA Banks 20/35 Capped Index, providing exposure to US banks. Amanda Rebello, DWS Head of Passive Distribution, UK and Ireland, commented, “This competitively priced ETF further expands our suite on US sectoral exposures. With the possibility of rising interest rates and inflation in the US providing further tailwinds for the US banking sector, we expect healthy demand for the exposure.”

Low volatility does not always mean low risk

Jay Beidler, co-Founder of Distillate Capital.

By Jay Beidler, co-Founder of Distillate Capital.

Low volatility, or low beta, as an investment concept has garnered a lot of attention and investment dollars in recent years. One reason for this is the high level of anxiety about geopolitical turmoil, political discord, negative interest rates, elevated levels of global debt, trade disputes, and a host of other issues.  The other reason is increased awareness of the “low beta anomaly,” in which lower beta stocks actually produce higher long-term returns.

ETF and Index News

Cerulli predicts significant growth in ETF subadvisory mandates

Matt Merritt, Associate Analyst at Cerulli.

ETFs have the potential to become a viable vehicle for fund management firms to deliver active management, leading to new mandates for subadvisors as managers look to deliver increasingly esoteric strategies within the wrapper. That is the conclusion of a recent report from global research and consulting firm Cerulli Associates. Matt Merritt, Associate Analyst at Cerulli, commented, “As managers continue to shift toward vehicle-agnostic delivery of active strategies, Cerulli believes that subadvisors focusing on best-in-class service and performance will participate in the tailwinds of the ETF market”.

MiFID II reveals record ETF trading volumes in Europe, finds BlackRock

Stephen Cohen, head of iShares EMEA at BlackRock.

Mandated trade reporting under MiFID II has revealed record trading volumes and liquidity in the European ETF market, providing comfort to new and existing investors that European listed ETFs are an efficient and liquid way to invest. Stephen Cohen, Head of iShares EMEA at BlackRock, said, “trading volumes help prove that the ETF market is deep enough to transact effectively both on small and large scales.”

Franklin Templeton: A year-end report card for industry predictions in 2018

David Mann, Head of Capital Markets, Global ETFs, Franklin Templeton Investments.

As 2018 draws to a close, David Mann, Head of Capital Markets, Global ETFs at Franklin Templeton Investments, looks back on some of the industry trends he had predicted would likely unfold this year. How many came to fruition? And which missed the mark?