MJ Lytle, Chief Executive, Tabula Investment Management

Latest news

Tabula’s credit volatility premia ETF surpasses €150m milestone

Tabula Investment Management’s credit volatility premia ETF – the Tabula J.P. Morgan Global Credit Volatility Premium Index UCITS ETF – has surpassed €150m in assets under management, less than six months since its launch. The fund, which debuted on the London Stock Exchange in March, captures the difference between realized and implied volatility in North American and European high yield credit default swap markets. Michael John Lytle, CEO of Tabula, commented, “Our ETFs have struck a chord with many types of investors, from wealth managers and asset managers to banks and insurance companies.”

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Latest news

Howie Li, Head of ETFs at LGIM

LGIM partners with Foxberry on European ‘responsible exclusions’ ESG ETF

Legal & General Investment Management has partnered with London-based index boutique Foxberry to launch the L&G Europe Equity (Responsible Exclusions) UCITS ETF on LSE. The fund, which is linked to the committee-driven Foxberry Sustainability Consensus Europe TR Index, aims to provide investors with a dynamic approach to environmental, social and governance investing while maintaining broad European equity market exposure. Howie Li, Head of ETFs at LGIM, commented, “By bringing experts together to collectively evaluate companies, their actions and behaviours on an on-going basis, this ETF is designed to provide the investment community with a dynamic and transparent exclusion approach for their market cap index investment.”

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

ETF allocations set for rapid growth, finds JP Morgan

Fund selectors are expected to ramp up ETF allocations in client portfolios from the current global average of 29% to 39% within three years, according to research commissioned by JP Morgan Asset Management. Bryon Lake, Head of International ETFs at JP Morgan Asset Management, commented, “Investors are becoming increasingly knowledgeable about ETFs and choosing to embrace the ETF vehicle which offers a number of unique benefits like daily liquidity, intraday trading, transparency, and real-time price monitoring. We believe we’re at the tipping point of the mass-market adoption of ETFs.”

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

Amundi rolls out short-dated euro corporate ESG bond ETF

Paris-based Amundi has expanded its responsible investment line-up with the launch of the Amundi Index Euro Corporate SRI 0-3Y – UCITS ETF DR on Euronext Paris. The ETF provides exposure to short-dated euro-denominated corporate bonds from issuers with strong environmental, social and governance (ESG) credentials. It is linked to the Bloomberg Barclays MSCI Euro Corporate ESG BB+ Sustainability SRI 0-3 Year Index. Fannie Wurtz, Head of Amundi ETF, Indexing & Smart Beta, said, “This launch demonstrates our commitment to meet the growing investor demand for passive solutions with ESG filters at very competitive prices.”

Lyxor rolls out suite of US and European yield curve ETFs

Lyxor builds out yield curve ETF offering

Lyxor has rolled out three new ETFs that enable investors to take a view on expected changes to the shape of key benchmark yield curves. The new ETFs stand to gain from a flattening of the US Treasury yield curve, a steepening of the German Bund yield curve, and a flattening of the German Bund yield curve. They join an existing ETF that profits from a steepening of the US Treasury yield curve. Philippe Baché, Head of Fixed Income ETFs at Lyxor, commented, “Views on the direction of interest rates differ among investors, and our innovative ETFs allow them to express their beliefs on the future shape of benchmark yield curves.”

Fixed Income

A guardian ANGL for a fixed income portfolio

James Kim, Director, ETFs at VanEck

By James Kim, Director, ETFs at VanEck.

With the prospect of better returns from higher-yielding US debt for the rest of the year, we believe a long position in VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL US) is worth considering.

Invesco launches suite of euro government bond ETFs in Europe

Invesco launches suite of euro government bond ETFs in Europe

Invesco has launched a suite of fixed income ETFs in Europe providing access to the euro-denominated government bond market. The ETFs, which track Bloomberg Barclays indices and deliver a range of maturity exposures, come with expense ratios of just ten basis points. Paul Syms, Head of EMEA ETF Fixed Income Product Management at Invesco, said, “Many investors have European government bonds for core allocation to diversify and reduce their portfolio volatility. We have developed these new ETFs with the aim of delivering the right balance between performance and broad market exposure.”

Alternatives / Multi-Asset

ChinaAMC launches 2x inverse Nasdaq 100 ETF in Hong Kong

Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes.

China Asset Management Company has launched a new exchange-traded product in Hong Kong, providing leveraged inverse exposure to the tech-heavy Nasdaq 100 Index. “The Nasdaq 100 is a powerful tool for investors to gain exposure to the world’s most innovative companies,” said Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes.

A smoother ride? Looking at factor-based asset allocation

A smoother ride? Looking at factor-based asset allocation

By Andrea Amato, Associate, Fixed Income and Multi-Asset Class Research, and Chenlu Zhou, Vice President, Multi-Asset Class Factor Research Team at MSCI.

Strategic asset allocation has been an important driver of multi-asset-class portfolios’ returns. Traditionally, many investors have followed a holdings-based approach — where decisions are based on asset-class weights in the portfolio. On the surface, this appears to produce a stable allocation, but is what you see always what you get?

Commodities

Royal Mint set to launch physical gold ETC

Anne Jessopp, CEO of The Royal Mint

The Royal Mint is set to become the first sovereign mint in Europe to launch a physically backed gold ETC. The ETC is being brought to market in collaboration with HANetf, an independent white-label ETF issuer, and is expected to debut in early 2020. Anne Jessopp, CEO of The Royal Mint, commented, “This is a milestone moment for The Royal Mint as we prepare to launch our first financially listed product and reinvent what it means to be a Mint in the modern age.”

WisdomTree’s carbon ETP soars on back of tougher emissions regulations

WisdomTree ETFS Carbon

An ongoing rally in the price of carbon futures, driven by tighter regulations aimed at combating climate change, has led to massive gains for WisdomTree’s ETFS Carbon which has posted a return of almost 300% in the past two years.

Equities

Why megatrend ETFs offer long-term growth potential

Why megatrend ETFs offer long-term growth potential

By Chris Dieterich, Strategist in BlackRock’s ETF and Index Investments Group, and Armando Senra, Head of iShares for the US, Canada, and Latin America.

LGIM lists ‘disruptive technology’ ETFs on Xetra and Borsa Italiana

LGIM cross-lists ‘disruptive technology’ ETFs on Xetra and Borsa Italiana

Legal & General Investment Management has cross-listed three thematic ‘disruptive technology’ ETFs on Xetra and Borsa Italiana. They include the L&G Artificial Intelligence UCITS ETF, the L&G Healthcare Breakthrough UCITS ETF, and the L&G Clean Water UCITS ETF. The funds, which debuted on the London Stock Exchange in July 2019, are designed to capitalize on secular investment opportunities in artificial intelligence, healthcare, and clean water.

Is recession in the cards?

Salvatore Bruno, Chief Investment Officer at IndexIQ

By Salvatore J. Bruno, Chief Investment Officer, IndexIQ.

There’s a saying that recessions don’t just happen; they’re the result of policy mistakes. There are differing opinions about the policy steps currently being taken with respect to trade and the Fed’s actions. This is causing market volatility and has economists worried, and more and more are predicting the possibility of recession between now and the end of 2020.

ETF and Index News

Tradeweb partners with EuroCCP on central counterparty clearing for ETFs

Enrico Bruni, Head of Europe and Asia Business at Tradeweb

Over-the-counter trading venue Tradeweb has partnered with equities clearing house EuroCCP to facilitate central counterparty clearing for ETFs traded on its European request-for-quote platform. Commenting on the initiative, Enrico Bruni, Head of Europe and Asia Business at Tradeweb, said, “By offering our clients the ability to centrally clear European ETF trades, we are enhancing the RFQ workflow by introducing a new post-trade process to help investors minimize settlement fails and improve efficiency.”

Franklin Templeton registers European domiciled ETFs for distribution in key Nordic markets

Franklin Templeton registers European ETF suite in selected Nordic countries

Franklin Templeton has registered its European domiciled ETFs for distribution in key Nordic markets. “We are delighted to register our 14 UCITS ETFs in Denmark, Finland, and Sweden…a natural step in the expansion of our European ETF platform,” said Caroline Baron, Head of ETF Sales EMEA at Franklin Templeton.

The pros and cons of currency hedging

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

By Christopher Dhanraj, Head of iShares Investment Strategy, BlackRock.

With the dollar maintaining its strength versus other currencies, the question of whether to hedge that currency effect remains an important one for US investors considering international exposures.