Gold-backed ETFs exhibited particularly low volatility in 2017 with prices so far remaining stable into 2018. Matthew Turner, precious metals analyst at Macquarie, suggests the historically low volatility in the gold market may reflect fundamental changes which could be here to stay.
It is often said that criticism is the price of success. This certainly appears to be the case with ETFs, which have enjoyed tremendous growth over the past few years but are the recipient of frequent criticism. Criticism has come from various quarters, but there is some unease that it often comes from individuals outside the industry who perhaps do not grasp all the technical intricacies of the product or from parties whose vested interests may be under threat. Industry experts from HANetf, Franklin Templeton, Lyxor and State Street Global Advisers scrutinise the latest allegations.
First Trust Global Portfolios has launched the First Trust Dow Jones Internet UCITS ETF (FDN LN) on London Stock Exchange, providing pure-play access to the thematic growth story of US-listed internet firms. Derek Fulton, CEO at First Trust Global Portfolios, said, “This new, highly liquid ETF provides exposure to this burgeoning asset class in a transparent UCITS structure…FDN offers exposure to FANG as well as driving alpha from other web-based companies.”
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.
Ossiam has launched the Ossiam ESG Low Carbon Shiller Barclays CAPE US Sector UCITS ETF (5HEE GY) on Xetra. The actively managed fund aims to deliver a risk/return profile similar to the existing Shiller Barclays CAPE US Sector Value Index, but with a significantly reduced carbon footprint and improved ESG profile.
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.”
The iShares Core S&P 500 UCITS ETF (CSP1 LN) has become the first Europe-listed ETF to surpass £20 billion in assets under management as strong inflows and healthy market performance pushed the ETF through the milestone threshold.
BlackRock has launched the iShares S&P US Banks UCITS ETF, providing exposure to US equities from firms operating in the banking industry. While there are a number of ETFs in Europe providing exposure to the European banking industry, the new iShares product is the first to exclusively target banking stocks in the US.
DWS Group, the asset manager recently spun out of Deutsche Bank, has introduced a euro-hedged version of its core US equity ETF on Xetra. The newly listed Xtrackers MSCI USA UCITS ETF 2C – EUR Hedged (XD9E GR) share class offers euro-referenced investors currency-hedged equity exposure to large and medium-sized US companies.
ProShares has launched the ProShares S&P 500 Bond ETF (SPXB US) on NYSE Arca, providing exposure to investment-grade corporate bonds issued by members of the blue-chip S&P 500 equity index. Michael Sapir, co-founder and CEO of ProShare Advisors, the advisor to ProShares, commented, “The S&P 500 served as the basis for the first ETF over 25 years ago. Today’s launch of a bond ETF tied to the S&P 500 is another important moment in the evolution of ETFs.”