UBS Global Asset Management, a leading European provider of exchange-traded funds, has listed two new ETFs on the London Stock Exchange: the UBS MSCI Europe ex-UK UCITS ETF (UC77) and the UBS FTSE 250 UCITS ETF (UC78). Commenting on the launch, Andrew Walsh, Head of UBS ETF Sales UK & Ireland, said: “The new ETFs broaden our extensive product range and continue our aim of responding to our clients’ needs by delivering focused ETF solutions at very competitive prices.”

Compass Efficient Model Portfolios, a Tennessee-based investment advisor, has made its debut in the exchange-traded fund space with the launch of three smart beta ETFs on Nasdaq. The three funds are based on proprietary strategy indices developed by Compass EMP. Stephen Hammers, Chief Investment Officer of Compass EMP Funds, said: “We are excited to introduce the first broad market, smart beta index that enhances market efficiency through fundamental criteria and security volatility weighting. These ETFs are also the first to market that have the ability to liquidate 75% of the securities in the index to cash in the event of a market decline.”

ETF Securities, a leading provider of exchange-traded products (ETPs), has launched a range of currency basket ETPs. The products, which have been listed on the London Stock Exchange and will cross list on the Deutsche Börse later this month, offer investors a transparent and cost effective way to get exposure to the foreign exchange markets by gaining access to a range of currencies simultaneously. The range includes four tactical currency baskets and one strategic currency basket. The tactical currency baskets are offered in both bullish and bearish versions.

BlackRock, the asset manager behind the iShares brand of exchange-traded funds, has been awarded its second Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission. The licence has been awarded to BlackRock’s UK registered business, enabling the firm to invest in domestic capital markets in China including the A-Share equity and onshore bond markets. BlackRock will now apply for investment quotas, which should ultimately lead to the launch of a London-listed ETF from iShares providing physical exposure to China.

MSCI, a major provider of indices to exchange-traded funds, has launched two new indices for the China equity market – the MSCI China A International Index and the MSCI China All Shares Index. Both indices are designed for international investors with QFII/RQFII quotas and can be used as benchmarks or as the basis of index-linked products such as ETFs. The MSCI China A International Index, which currently contains 221 securities, represents the A-share component of the MSCI China All Shares Index, which combines A, B and H Shares with Red and P Chips.

London Stock Exchange Group (LSE) has been successful in its bid to acquire the Frank Russell Company. The board of LSE believes the acquisition is a rare opportunity to acquire a high quality US business with a leading global indexing brand – Russell Indexes. The acquisition comes at a time when passive index-linked investing – particularly via exchange-traded funds – is fast taking market share from traditional active strategies. The combination of Russell Indexes with FTSE, LSE’s existing index brand, creates a global leader in index services and the number three provider of indices to ETFs globally.

Actively managed exchange-traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, according to a paper released by investment services provider SEI. This upward trend further demonstrates the attractiveness of active ETFs to both financial advisors and investors due to their lower costs, increased transparency and liquidity, and potential tax efficiency when compared to mutual funds.

Even with a perceived proliferation of exchange-traded funds on the market today, two-thirds of investors say there is room for more, according to a new study by retail broker Charles Schwab. Among them, nearly 60 percent say more ETFs will lead to increased competition and lower prices, and that continued product innovation is necessary to keep up with a changing market and economy. More than a quarter say that more product choice is the industry trend that has most benefited investors in the past few years, while forty percent are particularly keen to learn more about ‘smart beta’ and how these innovative products can best be harnessed.

Lyxor Asset Management, Europe’s third largest provider of exchange-traded funds, has built out a comprehensive suite of small and mid-cap equity ETFs. With recent new launches, Lyxor becomes the first ETF provider to offer a complete range of European small and mid-cap equity ETFs both regionally and by country. The suite enables investors to capture the risk premium from small and mid-cap equities over the long term. In Europe, small-caps stocks have outperformed large-cap stocks by 4.8% on an annualised basis over the last 10 years.

Morgan Stanley has introduced its debut exchange-traded fund, the MS Scientific Beta Global Equity Factors UCITS ETF (GEF). The ETF, which was unveiled on the London Stock Exchange earlier this month, provides exposure to the Scientific Beta Developed Multi-Beta Multi-Strategy Equal Weight Index and is the first ETF to be launched between Morgan Stanley and smart beta index provider ERI Scientific Beta. Rolled out under the investment bank’s FundLogic platform, the fund aims to meet the growing demand from institutional investors to access smart beta indices and factor indices through liquid and transparent products.