WisdomTree has brought its PutWrite strategy to Europe with the launch of the WisdomTree CBOE S&P PutWrite UCITS ETF (PUTW LN) on London Stock Exchange. The ETF provides a means of volatility risk mitigation for investors with US equities exposure. Christopher Gannatti, WisdomTree head of research in Europe, said, “With the S&P 500 at or near record highs, we believe that it could be time to position for greater future volatility and downside risk.”

Low-cost ETF provider Vanguard has launched a new fund in Europe – the Vanguard USD Corporate 1-3 Year Bond UCITS ETF (VDUC LN) – providing exposure to a broad basket of US dollar-denominated investment grade corporate bonds at the short end of the maturity spectrum.

BlackRock has launched the iShares US Fallen Angels High Yield Corp Bond UCITS ETF (USFL LN) on London Stock Exchange, providing exposure to US dollar-denominated ‘fallen angels’ – bonds that were rated investment grade upon issuance but have since ‘fallen’ to high yield status. The fund complements the $430m iShares Fallen Angels High Yield Corporate Bond UCITS ETF (WING LN) which launched in June 2016.

Twenty-two ETFs or new ETF share classes debuted on London Stock Exchange in April, bringing the total number of new listings (including ETPs) year-to-date to 151. Last month saw launches on LSE from ETF providers BlackRock, DWS, First Trust, VanEck, and SSGA.

Virtus ETF Solutions has partnered with Infrastructure Capital Advisors to launch the actively managed Virtus InfraCap US Preferred Stock ETF (PFFA US) on NYSE Arca. The fund seeks income and capital appreciation by investing in a portfolio of preferred securities issued by US companies with market capitalizations greater than $100 million.

DWS will close and liquidate three of its US-listed Xtrackers ETFs—the Xtrackers MSCI Brazil Hedged Equity ETF (DBBR US), Xtrackers MSCI EAFE Small Cap Hedged Equity ETF (DBES US), and Xtrackers MSCI Mexico Hedged Equity ETF (DBMX US). The funds, which collectively account for less than 1% of DWS’s total US AUM, will have their last day of trading on 31 May 2018.

Tabula Investment Management is preparing to make its debut with the launch of a range of fixed income ETFs in Europe. The firm’s first ETFs will provide exposure to credit default swap (CDS) indices from IHS Markit. Michael John (‘MJ’) Lytle, CEO of Tabula, commented, “Passive strategies account for only 5% of fixed income fund assets, compared to 30% for equities. We expect this gap to close, but how quickly will depend on how compelling the available funds are.” 

Lyxor has launched three new sustainability-focused ETFs, providing exposure to equities in the eurozone, the US, and globally. The funds, part of the firm’s newly unveiled “Trend Leaders” suite of ETFs, target firms with high environmental, social and governance (ESG) ratings as determined by index provider MSCI. 

Commenting on flows in the EMEA region, Wei Li, head of iShares EMEA investment strategy at BlackRock, said, “Fixed income flows returned to positive territory in April as $1.5bn flowed into EMEA-listed ETPs. Emerging market debt and investment grade ETPs continued to be unpopular, with outflows totalling $475m.”

Greece is in much better shape than the dark days of its government debt crisis which ultimately led to it becoming the first Western country to default on its debt repayments to the IMF in June 2015. For those seeking to benefit from what one economist calls “Greek shoots of recovery”, ETFs provide a low-cost means of access.