UBS Asset Management has launched two new multi-factor equity ETFs targeting eurozone and developed global markets stocks. The funds, the UBS MSCI EMU Select Factor Mix UCITS ETF and UBS MSCI World Select Factor Mix UCITS ETF, seek to capture the returns attributed to six risk premia – momentum, value, quality, shareholder yield, volatility and size. They have been listed across various exchanges, including Xetra, London Stock Exchange, Six Swiss Exchange and Borsa Italiana.

DWS has cross-listed four Xtrackers-branded ETFs onto SIX Swiss Exchange. Each fund provides exposure to equities of firms with high environmental, social and governance (ESG) ratings, as well as small current and expected future carbon footprints. The ETFs, which target large- and mid-cap stocks in Japan, the US, Europe and globally, harness sustainability ratings from index provider MSCI.

Societe Generale, the French investment giant behind Lyxor ETF, has agreed to acquire Commerzbank’s equity markets and commodities business. The business includes the German bank’s established ETF brand, ComStage, and its associated ETF market-making platform.

By Yu-Ming Wang, Global Head of Investment and Chief Investment Officer, International at Nikko Asset Management.

Since the term emerging markets (EM) was coined over three decades ago, almost all the underlying facts about EM as an asset class have changed. Historically, macro views tended to dominate EM investing more than for developed markets (DM) for a variety of reasons.

Twenty new ETFs or ETF share classes were listed on the London Stock Exchange in May, bringing the total number of new listings (including ETPs) to 171 year-to-date. New products were brought to market by six different issuers including Lyxor, DWS, BlackRock, WisdomTree, Vanguard, and Invesco.

MSCI has upgraded Saudi Arabia to “Emerging Market” status, following its latest Annual Market Classification Review. “Today’s announcement from MSCI, so close on the heels of KSA’s reclassification in the FTSE Russell Global Equity Index Series, marks the further integration of the Kingdom of Saudi Arabia into global capital markets,” said Sarah Al Suhaimi, chairperson of Tadawul.

JP Morgan Asset Management has announced the launch of the JPMorgan BetaBuilders MSCI US REIT ETF (BBRE US) on Cboe BZX providing exposure to the performance of US real estate investment trusts. “BBRE is a pure play on the REIT market and provides choice to investors who are seeking core real estate index exposure,” said Joanna Gallegos, US head of ETFs at JP Morgan Asset Management.

State Street Global Advisors has launched the Communication Services Select Sector SPDR ETF (XLC US) on NYSE Arca. The fund provides exposure to the new Communication Services sector of the US equity market as defined by GICS. “The launch of XLC allows our clients immediate access to this new investment opportunity that will represent roughly 10 percent of the S&P 500 Index in terms of market capitalisation,” said Noel Archard, global head of product for State Street ETFs.

Invesco has launched a new ETF – the Invesco MSCI Saudi Arabia UCITS ETF (MSAU LN) – on London Stock Exchange that provides exposure to companies listed in Saudi Arabia. It is the first ETF in Europe to offer investors targeted exposure to Saudi Arabian stocks and the domestic Saudi economy, which, according to Chris Mellor, head of EMEA ETF equity & commodity product management at Invesco, “is in the early stages of an exciting transformation.”

Following a review of its product lineup, BlackRock plans to close and liquidate the following US iShares ETFs. The funds have failed to attract significant assets under management. The smallest fund (HHYX) has just $1.4m in AUM and the largest (HEFV), $16.7m.