The London Stock Exchange (LSE) has announced that a record number of exchange-traded funds were listed on its platform last month. February saw providers list 30 ETFs on the bourse with half of these focused on the fixed income sector.
The strong listing activity in London (pictured) brings the total number of ETFs/ETPs launched on the LSE this year to 37 ETFs/ETPs, 11 more than for the same period last year.
The strong listing activity brings the total number of ETFs and exchange traded products launched on the LSE this year to 37, 11 more than the same period last year.
The uptick in listings comes as the industry’s assets hit a record high of $372 billion last year, according to data from ETFGI.
Lida Eslami, Product Specialist at the London Stock Exchange, commented: “London is the premier listing and trading venue for ETFs in Europe and we are delighted to see such a strong start to 2016. There has been exciting growth in secondary market trading on our markets and we expect appetite for these products to remain very strong.”
The provider with the greatest listing activity during the month was State Street Global Advisors, which launched a suite of 11 SPDR fixed income ETFs. The funds utilise Barclay’s indices that cover specific segments of the yield curve in corporate and government bonds listed in the US and Europe. As such, they are well suited for investors looking to establish tactical positioning ahead of predicted shifts and twists in the yield curve.
UBS was not far behind with a total of nine launches. These include eight smart beta products, providing alternative factor exposures (such as low volatility and yield tilts) to US and European equity, while hedging currency risk against the British pound; and one emerging markets sovereign bond ETF that tracks the government debt markets of more than 60 issuers and maintaining a cap of 3% per country.
The remaining launches included four Vanguard fixed income ETFs, tracking US and European corporate and government bond indices; four Amundi funds, which include US equity exposure (Russell 2000 Index) and an ETF which invests in Japanese stocks. And there were two Source ETFs which expand the firm’s range of sector specific funds by covering the financial services and the real estate sectors of the US business industry.
This year has seen strong listing activity on the LSE. Highlights in January included iShares listing its first ETF providing exposure to Israel’s Tel-Aviv 25 Index, as well as the launch of the Euro Stoxx High Dividend Low Volatility ETF from Invesco Powershares.
The London Stock Exchange now hosts 893 ETFs and 395 ETPs.