UBS launches long-duration US TIPS ETF with GBP-hedging on London Stock Exchange (T10G LN) and SIX Swiss Exchange (TIP10G SW)

Latest news

UBS launches long-duration US TIPS ETF with GBP-hedging

UBS Asset Management has launched the UBS Bloomberg Barclays TIPS 10+ UCITS (hedged to GBP) A-dis on London Stock Exchange (T10G LN) and SIX Swiss Exchange (TIP10G SW). The ETF provides sterling-hedged exposure to long-duration US Treasury Inflation Protected Securities (TIPS). Andrew Walsh, Head of Passive and ETF Specialist Sales UK & Ireland, said: “We are very pleased to expand our fixed income offering to include a fund which helps our clients achieve a targeted exposure to long-duration US TIPS coupled with the benefits of GBP-hedging.”

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Latest news

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta

Amundi aims to double ETF, indexing, and smart beta AUM by 2023

Paris-headquartered asset manager Amundi has said it wants to double assets under management within its ETF, indexing and smart beta business line to €200 billion by 2023. The declaration comes as it launches a highly competitive suite of core portfolio ETFs at a flat fee of 5 basis points. Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, commented, “We will look to meet our objectives by developing new markets while continuing to increase our European presence, where we believe there is still significant room for growth.”

Tech rebound leads to strong gains for HANetf’s thematic funds

Thematic technology ETFs bounce back

The rebound in technology stocks, following the sector’s sell-off at the end of 2018, has led to impressive gains for thematic technology ETFs at the beginning of 2019, according to European white-label ETF issuer HANetf.

Amundi introduces low-cost suite of core ETFs

Amundi introduces suite of ‘Prime’ ETFs at 5bps

Amundi has launched a suite of nine ultra-low-cost ETFs – branded ‘Prime’ – on Xetra and London Stock Exchange that have been designed to provide investors with core portfolio exposures. Consisting of five equity and four fixed income ETFs, each fund is linked to a Solactive index and comes with a total expense ratio (TER) of just 0.05%. 

Gary Buxton Invesco

Invesco partners with Alan Howard’s Elwood to launch global blockchain ETF

Invesco has partnered with Elwood Asset Management to launch the Invesco Elwood Global Blockchain UCITS ETF on London Stock Exchange, providing exposure to companies globally that have the potential to generate earnings from blockchain technology. “We believe the potential for blockchain technology to disrupt the status quo of companies in virtually every industry makes for a strong long-term investment case,” said Gary Buxton, Head of EMEA ETFs at Invesco. Elwood is owned by hedge-fund billionaire Alan Howard.

Fixed Income

Tabula launches inverse European CDS ETF

MJ Lytle, Chief Executive, Tabula Investment Management

Tabula Investment Management has launched a new ETF in Europe, providing inverse exposure to European high-yield credit through direct access to the credit default swap (CDS) market. The Tabula European iTraxx Crossover Credit Short UCITS ETF (TECS LN) reflects the return from buying protection on an index of sub-investment grade corporate issuers from across the continent. Michael John Lytle, CEO of Tabula Investment Management, said, “We strongly believe in making CDS indices more accessible…We are making them available in a transparent UCITS ETF, which extends the tool kit for fixed income investors to efficiently manoeuvre in difficult market environments.”

BNP Paribas launches socially responsible euro credit ETF

BNP Paribas launches socially responsible euro credit ETF

BNP Paribas Asset Management has launched the BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF (SRIC FP) on Euronext Paris, providing low carbon exposure to around 400 euro-denominated corporate bonds selected using environmental, social, and governance (ESG) criteria.

Alternatives / Multi-Asset

ETFs expanding the horizons for efficient asset allocation

Matthew J Bartolini, Head of SPDR Americas Research

By Matthew J. Bartolini, Head of SPDR Americas Research.

The more than 2,000 ETFs currently listed on US exchanges have provided investors democratized access to not only broad-based exposures, but more importantly, niche areas that are additive to the portfolio construction process. This is true from both a risk/return and a diversification perspective.

Managing volatility remains key in 2019, says BMO GAM

Morgane Delledonne, ETF Investment Strategist at BMO Global Asset Management

De-risking in an effort to reduce the volatility drag on portfolios remains a key ETF investment strategy for 2019, according to Morgane Delledonne, ETF Investment Strategist at BMO Global Asset Management. Delledonne notes that a deceleration in global economic growth and continued political and economic instability in Europe will increase the need for defensive ETFs such as those providing exposure to high-income equities and high-quality credit.

Commodities

WisdomTree unveils two roll-enhanced commodity ETPs

Christopher Gannatti, WisdomTree Head of Research in Europe

WisdomTree has launched two new exchange-traded commodities on the London Stock Exchange, providing exposure to baskets of commodity futures from the industrial metals and energy sectors. The ETCs incorporate a smart roll mechanism which aims to limit potential losses arising from rolling futures contracts in contango markets and maximizing the benefit from rolling contracts in backwardation. Christopher Gannatti, Head of Research in Europe, commented, “The roll in these ETCs substantially mitigates the costs of holding commodity futures contracts and this can potentially reduce the volatility of returns.”

WisdomTree: El Niño’s impact on agricultural commodities

WisdomTree Agricultural commodities el nino ETFs

By Nitesh Shah, Director, Research at WisdomTree.

El Niño refers to a climate cycle in the Pacific Ocean that has a global impact on weather patterns. The name, which loosely translates to ‘Christ child’, traces its origin back to Peruvian fisherman in the 1600s, who observed that fish yields would often decline around Christmas time as seawater temperatures rose.

Equities

Invesco celebrates 20th anniversary of QQQ

Dan Draper, Global Head of ETFs at Invesco.

Invesco has celebrated the twentieth anniversary of the launch of the Invesco QQQ, its giant Nasdaq 100 ETF. Introduced on 10 March 1999, QQQ has become the sixth largest ETF globally, with $66 billion in assets under management. “Invesco is proud of the 20 years of innovation that have been marshaled through the Invesco QQQ and the access it has provided investors to pioneering companies that impact each of us daily,” said Dan Draper, Managing Director, Global Head of Invesco ETFs.

Goldman Sachs partners with Motif on thematic ETFs

Goldman Sachs partners with Motif on innovative technology ETFs

Goldman Sachs Asset Management (GSAM) has introduced a suite of five thematic equity ETFs investing in listed companies that are at the vanguard of innovation – either by way of product development or adoption. The funds are linked to indices from Motif Capital Management and cover themes that GSAM believes are pivotal to transformational changes to the global economy: data-driven world, finance reimagined, human evolution, manufacturing revolution, and new age consumer.

BlackRock builds out core ESG suite with six new ETFs

BlackRock builds out sustainable core with six new ESG ETFs

BlackRock has announced plans to launch six new iShares ESG ETFs in Europe as part of the firm’s ‘Core’ range of low-cost funds designed as primary building blocks for investors’ portfolios. The ‘Enhanced ESG’ ETFs, linked to MSCI indices, will provide broad equity exposures while tilting towards firms with strong environmental, social, and governance characteristics and lowering the carbon intensity scores of their portfolios. “Our Sustainable Core ETF range is about setting a global catalyst for choice and transparency that allows investors to apply ESG considerations into the foundation of their portfolios,” said Carolyn Weinberg, Global Head of iShares Product, at BlackRock.

ETF and Index News

MSCI to increase China A shares weight in EM and ACWI indices

Remy Briand, MSCI Managing Director and Chairman of the MSCI Index Policy Committee.

MSCI has announced that it will increase the weight of China A shares in its widely followed MSCI Emerging Markets and MSCI ACWI indices from a 5% to 20% inclusion factor over a three-step process between May and November 2019. Remy Briand, MSCI Managing Director and Chairman of the MSCI Index Policy Committee, commented, “The strong commitment by the Chinese regulators to continue to improve market accessibility, evidenced by, among other things, the significant reduction in trading suspensions in recent months, is another critical factor that has won the support of international institutional investors.”

Tail Wagging the Dog? – Franklin Templeton comments on ETF market resilience

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

With volatility very much back in the headlines, some investors are questioning the role of ETFs in exacerbating market moves. Jason Xavier, Head of EMEA ETF Capital Markets at Franklin Templeton Investments, puts those concerns into context and tries to allay some other fears about the resilience of the sector.

Spring forward: Five themes for the coming months

Chris Dhanraj, Head of the iShares Investment Strategy team, BlackRock

By Chris Dhanraj, Head of the iShares Investment Strategy team, BlackRock.

Tired of winter? Never fear: Once again, spring is near. For all of us, it is a time of growth, renewal, and restoration. For investors, it is also time to take stock of whether they are on course, or to identify potential storms that may lie ahead.