Lyxor lowers fees across several single-country ETFs

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Lyxor refreshes several EM ETFs with lower fees and new indices

Lyxor has refreshed several EM-oriented ETFs with lower total expense ratios on six single-country ETFs and new underlying indices for three. The funds, which are listed across the main European exchanges, include products targeting the equity markets of Turkey, South Korea, Malaysia, Taiwan, South Africa, Indonesia and Eastern Europe. MSCI wins the index mandates while investors achieve savings of in excess of $1m per annum at today’s prices.

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Latest news

European ETF issuers launch Bloomberg feed for consolidated aggregate trading data

European ETF issuers partner with Bloomberg on ‘consolidated tape’

Leading ETF issuers in Europe have joined forces with financial data giant Bloomberg to provide investors with a ‘consolidated tape’ of aggregate ETF trading data. The Bloomberg ETF aggregate volume feed, which incorporates OTC trades, aims to increase transparency around European ETF trading. Jim Goldie, EMEA Head of ETF Capital Markets at Invesco, said, “The industry has come together for the benefit of all stakeholders to showcase the liquidity, transparency and strengths of the ETF market, and we expect this service to further catalyse the growth of the sector.”

Fixed income powers global ETP flows in November

Fixed income powers global ETP flows in November

Exchange-traded products globally collected $56.5 billion in net inflows during November, the greatest increase in net new assets since January, according to the latest BlackRock ETP Landscape report. Global ETP growth was propelled by robust demand for fixed income products which gathered $18.7bn – the highest month since June 2017 – led by US Treasury funds with $9.1bn.

Gold ETFS ETCs

Invesco cuts fee on $4.5bn physical gold ETC

Invesco has reduced the annual fee on its $4.5 billion physical gold ETC from 0.29% to 0.24%. Following the price cut, the Invesco Physical Gold ETC now offers the lowest overall cost of any gold ETP available in Europe. “One of the big attractions of gold as an investment is that it tends to behave differently than other asset classes, especially equities. For investors considering adding exposure, we’ve just made it even more attractive from a cost perspective,” said Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco.

BlackRock launches iShares emerging markets value ETF

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.

Fixed Income

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

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

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.”

Invesco launches new multi-factor bond ETFs in US

Invesco launches multi-factor aggregate bond ETFs

Invesco has launched two new factor-based fixed income ETFs on Cboe BZX Exchange: the Invesco Multi-Factor Defensive Core Fixed Income ETF (IMFD US) and the Invesco Multi-Factor Income ETF (IMFI US).

Alternatives / Multi-Asset

FTSE Russell launches green real estate indices

David Harris, Head of Sustainable Investment at FTSE Russell

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.”

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.

Commodities

The Perth Mint makes case for gold investment

Jerry Hicks, Sales & Business Development Manager at The Perth Mint

By Jerry Hicks, Sales & Business Development Manager at The Perth Mint.

For centuries gold has been viewed as a safe haven investment in times of uncertainty. In the past two years, a strong US dollar and prolonged market gains have prompted fluctuations and increased pressure on the price of gold. But now gold analysts are calling for a refreshed look at the precious metal, as the US economy shows signs of a cycle peak next year, geopolitical tensions rise, and a growing middle class of gold consumers in China and India emerges.

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.

Equities

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

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

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.”

ETF and Index News

Global ETF assets roar back above $5 trillion

Global ETF AUM roars past $5 trillion in November

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.

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.”