Mark Fitzgerald

Latest news

Vanguard launches aggregate bond ETF in Europe

Vanguard has launched a new fixed income ETF in Europe – the Vanguard Global Aggregate Bond UCITS ETF – which provides broad and diversified exposure to investment grade bonds from both developed and emerging market issuers. Mark Fitzgerald, Head of ETF Product Management in Europe at Vanguard, commented, “Investors are often tempted to invest locally when it comes to fixed income, largely out of familiarity. However, the added diversity of a global bond allocation can actually reduce the risk of an investor’s fixed income portfolio”. The ETF comes with a TER of 0.10% and has been listed on LSE and Deutsche Börse.

[continue reading...]

Latest news

Hong Kong ETFs

Hong Kong welcomes its first actively managed ETF

The Hong Kong stock exchange has welcomed its first actively managed ETF – the ICBC CICC USD Money Market ETF – launched by China International Capital Corporation (CICC). Sub-advised by ICBC Global Asset Management, the ETF invests in US dollar short-term deposits and money market investments. Brian Roberts, Senior Vice President and Head of ETPs at Hong Kong stock exchange, said, “The introduction of active ETFs in Hong Kong is in response to investors’ increasing demand for more investment choices in the market. We believe the product launch will help to drive product innovation in the ETF market.”

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

Invesco rolls out low-cost ESG equity ETFs

Invesco has launched a suite of low-cost ETFs in Europe that screen companies based on ESG characteristics within the global developed, US, and European equity markets. With expense ratios ranging between 0.12% and 0.19%, the Invesco MSCI World ESG Universal Screened UCITS ETF, Invesco MSCI USA ESG Universal Screened UCITS ETF, and Invesco MSCI Europe ESG Universal Screened UCITS ETF have been priced to compete with similar funds offered by rivals such as BlackRock, Lyxor, and UBS. Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, commented, “As ESG strategies become mainstream, many investors are now wanting to use them as core holdings for their portfolios. That places a greater emphasis on transparency, overall costs, and the volatility compared to other funds.”

Raj Lala, President and CEO of Evolve ETFs

Evolve Funds launches Canada’s first eGaming and eSports ETF

Evolve Funds Group has launched a new ETF – the Evolve E-Gaming Index ETF (HERO CN) – on the Toronto Stock Exchange. The fund is Canada’s first ETF to provide pure-play thematic exposure to firms listed globally operating in the eGaming and eSports industries. Raj Lala, President, and CEO of Evolve ETFs, commented, “The launch of HERO marks an opportunity for Canadian investors to participate in another innovative sector positioned for exponential global growth.

KraneShares turns to smart beta for new US dividend ETFs

Krane Funds Advisors launches smart beta US dividend ETFs

Krane Funds Advisors, best known for its KraneShares-branded suite of China-focused ETFs, has broadened its capabilities beyond the Asian giant with the launch of two smart beta ETFs on NYSE Arca providing exposure to domestic US stocks with sustainable dividends.

BlackRock Thematic iShares Cybersecurity Genomics ETFs

BlackRock adds to ‘megatrend’ suite with new cybersecurity and genomics ETFs

BlackRock has launched two new thematic ETFs in the US, providing exposure to firms linked to the cybersecurity and genomics immunology industries: the iShares Cybersecurity and Tech ETF (IHAK US) and the iShares Genomics Immunology and Healthcare ETF (IDNA US). The funds have been listed on NYSE Arca and form part of asset manager’s ‘megatrend’ suite of ETFs.

Fixed Income

High yield: The next step in bond laddering

BlackRock iShares ibond ladder etfs

Defined-maturity bond ETFs can vastly simplify the task of laddering high-yield bonds. Karen Schenone, Fixed Income Product Strategist at BlackRock, explains.

Stanlib launches SA government bond ETF

Stanlib South Africa government bond ETF

South African asset manager Stanlib has launched a new ETF on Johannesburg Stock Exchange. The Stanlib SA Bond ETF (ETFBND SJ) is linked to the S&P South Africa Sovereign Bond 1+Year Index which covers local currency South African government debt from across the yield curve.

Alternatives / Multi-Asset

Innovator expands ‘defined outcome’ S&P 500 ETF suite

Innovator starts phase two of S&P 500 Buffer ETFs

Innovator Capital has launched three new ETFs on Cboe BZX Exchange – the Innovator S&P 500 Buffer ETF – June (BJUN US), Innovator S&P 500 Power Buffer ETF – June (PJUN US), and Innovator S&P 500 Ultra Buffer ETF – June (UJUN US) – which collectively form the June series of the firm’s S&P 500 ‘defined outcome’ suite.

iM Global Partner launches managed futures ETF

Andrew D. Beer, Managing Partner of Dynamic Beta Investments

French investment and development platform iM Global Partner has unveiled its debut ETF – the iM DBi Managed Futures Strategy ETF (DBMF US) – on NYSE Arca. The actively managed fund, subadvised by alternative investment specialist Dynamic Beta Investments, provides exposure to a managed futures strategy based on the asset allocations of leading hedge funds. Andrew Beer, Managing Partner of DBi, said, “The fund has the potential to deliver the valuable diversification benefits of a portfolio of leading CTA hedge funds to a broader universe of investors, with reasonable fees, liquidity and transparency investors expect from an ETF.”

Commodities

Late in the economic cycle? Look at commodities!

Late in the economic cycle? Look at Commodities!

By Christopher Gannatti, Head of Research in Europe at WisdomTree.

From an equity market perspective, the first quarter of 2019 was a complete blockbuster. One has to go back to the third quarter of 2010 to see stronger performance for the MSCI World Index, which delivered a return of 12.5%. One reaction to this is to think that equity markets will continue to run and that the rally will continue. However, we see more thinking that this is classic “late-cycle” behaviour and that it is only a matter of time until the US economy experiences its next recession.

GraniteShares Gold ETF hits $500m AUM milestone

William Rhind, Founder and CEO, GraniteShares.

GraniteShares has announced that its NYSE Arca-listed GraniteShares Gold Trust (BAR US) has reached $500 million in assets under management of the back uncertainty in equity markets. Will Rhind, Founder, and CEO of GraniteShares, commented, Will Rhind, Founder, and CEO of GraniteShares, commented, “We’re delighted to see investors embrace our low-cost gold offering in today’s volatile market. From the beginning, our mission at GraniteShares has been to provide unique solutions for common pain points experienced by all investors.”

Equities

Evolve Funds launches enhanced income global mining ETF

Elliot Johnson, CIO and COO at Evolve ETFs.

Evolve Funds Group has launched a new ETF – the Evolve Global Materials & Mining Enhanced Yield Index ETF – in Canada offering investors access to the global mining sector while seeking to enhance income through the use of option strategy overlays. The ETF has been listed on the Toronto Stock Exchange and comes with a management fee of 0.60%. “The materials industry is often cyclical and we think it’s time for Canadian investors to take another look at the sector,” said Elliot Johnson, CIO, and COO at Evolve ETFs.

Middlefield converts two active mutual funds to ETFs

Middlefield converts two active mutual funds to ETFs

Canadian asset manager Middlefield Group has converted two of its actively managed mutual funds to ETFs with new listings on Toronto Stock Exchange. The converted ETFs are the Middlefield Health & Wellness ETF (HWF CN), providing exposure to firms operating in the healthcare and wellness industries, and the Middlefield American Core Dividend ETF (ACZ CN), investing in dividend-paying firms from ‘Core’ US sectors.

BlackRock expands smart beta suite with US mid-cap multifactor ETF

BlackRock expands smart beta suite with US mid-cap multifactor ETF

BlackRock has launched a new smart beta ETF on NYSE Arca, providing exposure to US mid-cap stocks that have been selected via a multifactor process. The iShares Edge MSCI Multifactor USA Mid-Cap ETF (MIDF US) is linked to the MSCI USA Mid Cap Diversified Multiple-Factor Index and comes with an expense ratio of 0.25%.

ETF and Index News

Three reasons why indexing and ETFs WON’T cause the next market crash

Jim Rowley, Head of Active/Passive Portfolio Research at Vanguard.

By Jim Rowley, Head of Active/Passive Portfolio Research at Vanguard.

After a decade-long bull run in stocks, recent market volatility has made investors increasingly edgy. Amid interest rate uncertainty, heightened trade tensions, and confusion around Brexit, many market commentators see abounding reasons for an imminent and sharp market downturn. And some even cite the growth of indexing strategies as a potential trigger of the next bear market.

US equities lead lacklustre inflows for EMEA-listed ETPs in May

US equities lead lacklustre inflows for EMEA-listed ETPs in May

EMEA-listed ETPs recorded $2.3 billion in net inflows during May, the lowest inflow month of the year so far, according to a report by BlackRock, the asset manager behind the iShares range of funds. Flows were led by demand for US equity ETPs which added $1.6bn, the largest monthly inflow for the segment since October 2018.

FTSE Russell celebrates ten years of the FTSE MIB

FTSE Russell celebrates ten years of Italian FTSE MIB Index

FTSE Russell is celebrating the tenth anniversary of the FTSE MIB Index, the preeminent stock market index for the Borsa Italiana. The index, which consists of the 40 largest and most liquid stocks listed in Milan, is the most widely followed barometer of the health of the Italian equity market. It also serves as the underlying reference for eight ETFs, including the €400m Lyxor FTSE MIB UCITS ETF.