Invesco launches Europe’s first variable rate preferred shares ETF

Latest news

Invesco launches Europe’s first variable rate preferred shares ETF

Invesco has launched the Invesco Variable Rate Preferred Shares UCITS ETF (VRPS LN) on London Stock Exchange. The fund, which is linked to an index managed by Wells Fargo, aims to provide investors with an attractive yield versus traditional US investment grade and high yield bonds while offering potentially lower volatility.

Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, commented, “Variable rate preferred shares are currently yielding around 5%, just above what you would get from high yield bonds, while typically having an investment grade credit rating. They also have lower duration, meaning less interest rate risk.”

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Latest news

Boost for VIX ETFs amid equity sell-off and volatility spike

VIX ETFs surge amid equity sell-off and volatility spike

ETFs providing exposure to the VIX Index have recorded strong gains over the past week as volatility in US equities has spiked amid a global market sell-off.

Columbia Threadneedle launches municipal bond ETF with ‘smart’ selection process

Columbia Threadneedle launches smart beta municipal bond ETF

Columbia Threadneedle has expanded its smart beta line-up with the launch of the Columbia Multi-Sector Municipal Income ETF (MUST US) on NYSE Arca. The fund provides exposure to the US municipal bond market via a rules-based bond selection process that seeks to improve on traditional passive approaches. Marc Zeitoun, Head of Strategic Beta at Columbia Threadneedle, said, “We opted to draw upon our expertise in managing active municipal bond portfolios to build an innovative, strategic beta fund that leverages our best thinking.”

HANetf Innovative technologies etfs

HANetf partners with GinsGlobal to launch innovative tech and cloud computing ETFs

HANetf has partnered with GinsGlobal Index Funds to launch two new global equity ETFs – the HAN-GINS Global Innovative Technologies ETF and the HAN-GINS Cloud Technology UCITS ETF – that provide exposure to the themes of innovative technology and cloud computing. Anthony Ginsberg, Founder and MD of GinsGlobal Index Funds, commented, “Our unique theme-based ETFs focusing on cloud computing and innovative technologies will provide European investors with easy low-cost access to dynamic global companies representing the Fourth Industrial Revolution.” The ETFs debut on the LSE on 10 October 2018.

Morgane Delledonne, ETF Investment Strategist at BMO Global Asset Management

Emerging market ETFs offer value, says BMO GAM’s Morgane Delledonne

ETFs providing exposure to emerging market (EM) equities may offer a buying opportunity for value-seeking investors following the asset class’s sell-off earlier in the year, according to BMO Global Asset Management’s Morgane Delledonne.

Fixed Income

Prudential launches actively managed high-yield ETF

PGIM Active ETFs

Prudential Global Investment Management (PGIM) has launched its second actively managed ETF – the PGIM Active High Yield Bond ETF (PHYL US) – following the debut of its ETF platform earlier this year. The fund seeks to generate total return through a combination of current income and capital appreciation by investing primarily in US dollar-denominated high-yield bonds.

BlackRock partners with JP Morgan to launch ESG-screened EM bond ETF

BlackRock, JP Morgan launch ESG-screened EM bond ETF

BlackRock has announced the launch of the iShares JP Morgan ESG $ EM Bond UCITS ETF on the London Stock Exchange, providing exposure to sovereign and quasi-sovereign bonds from emerging market issuers that adhere to high environmental, social and governance standards. The ETF tracks an index created as part of a joint venture with JP Morgan. Benoit Sorel, Head of iShares EMEA Product, commented, “With this fund, we are providing investors the ability to integrate sustainability considerations in emerging market bond portfolios.”

Alternatives / Multi-Asset

No time for heroics: ETF investors look for cover

Martin Small, Head of US iShares at BlackRock.

By Martin Small, Head of US iShares at BlackRock. The economy and corporate earnings are humming. Inflation is in check. US stocks are touching records. So why are investors so edgy? ETF flows can help tell the story.

Five investment strategies propelling the rise of ETFs

Matthew J Bartolini, Head of SPDR Americas Research

By Matthew J. Bartolini, Head of SPDR Americas Research. Investors were given a crash course in using ETFs during the financial crisis. Once they started implementing investment strategies with these funds, they never looked back.

Commodities

GraniteShares Gold reclaims title of cheapest gold ETP

GraniteShares Gold Trust reclaims title of cheapest gold ETP

GraniteShares has lowered the expense ratio of the $280 million GraniteShares Gold Trust (BAR US) from 0.20% to 0.17%, once again making it the cheapest gold ETP on the market.

Gold ETFs continue to endure outflows but pace slowing, World Gold Council reports

World Gold Council reports gold ETFs continue outflows but pace slowing

Global gold-backed ETFs trimmed 23.7 tonnes, equivalent to $932 million in redemptions, during September – the fourth consecutive month of net outflows – according to data from the World Gold Council.

Equities

Hamilton Capital launches Canadian banks ETF based on mean-reversion strategy

Hamilton Capital Canadian Banks smart beta ETF

Hamilton Capital has launched the Hamilton Capital Canadian Bank Dynamic-Weight ETF (HCB CN) on Toronto Stock Exchange. The fund provides concentrated exposure to Canada’s ‘Big 6’ banks with weights dynamically allocated according to a mean-reversion strategy.

First Trust, IPOX Schuster team up for European IPO & spin-off ETF

First Trust, IPOX Schuster team up for European IPO ETF

First Trust Advisors has launched an equity ETF – the First Trust IPOX Europe Equity Opportunities ETF (FPXE US) – targeting European companies recently listed by way of an initial public offering (IPO) or spin-off from an existing company. “This fund provides a unique strategy for investors to gain exposure to the innovation and growth of these stocks before many are added to broad index funds,” said Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust. The fund has been listed on Nasdaq.

JP Morgan to launch its first active equity ETFs in Europe

JP Morgan to launch its first active equity ETFs in Europe

JP Morgan Asset Management has unveiled three quantitative-based active equity ETFs that are set to debut in Europe in the coming weeks. Pitched as ‘enhanced index’ products, the funds will provide access to broad market portfolios of global, US, and European stocks whilst taking into consideration environmental, social and governance factors. The funds are scheduled to list on the London Stock Exchange, Xetra, and Borsa Italiana on 16 October 2018 and will be the asset manager’s first actively managed equity ETFs in Europe.

ETF and Index News

Hang Seng launches China HK ‘Big Bay Area’ equity index

Hang Seng launches China HK ‘Big Bay’ equity index

Hang Seng Indexes has launched the Hang Seng Stock Connect Hong Kong Big Bay Area Index, an equity index reflecting the performance of Hong Kong-listed companies that operate in the Guangdong-Hong Kong-Macao bay area and are eligible for southbound trading under the Stock Connect scheme.

Strategy Shares reports AUM growth over 300% YTD

Strategy Shares reports AUM growth over 300% YTD

Huntington, New York-based Strategy Shares has announced that assets under management have increased by more than $250 million since the start of the year, to $330 million, representing growth of around 325%. 

MSCI quits tobacco in new index family

MSCI Ex-Tobacco Indices

MSCI, a leading provider of indices to the ETF industry, has launched a new suite of equity indices that exclude firms involved in the tobacco industry. The indices are based on a number of its best-known benchmarks. “There is growing demand for exclusionary indices globally, including interest among the world’s largest pension and endowment funds for tobacco exclusion benchmarks,” said Deborah Yang, Global Head of ESG Indices at MSCI.