Ten new ETFs or ETF share classes were listed on the London Stock Exchange in October 2019, according to the exchange’s latest ETP monthly update, taking the total number of ETF listings on the exchange to 1,245, available through 1,794 different share classes.
There are now 1245 ETFs (available as 1794 lines through multi-currency offerings) on LSE.
ETF providers issuing products during the month included Amundi, DWS, Goldman Sachs Asset Management (GSAM), Invesco, State Street Global Advisors, and UBS.
Highlights
Amundi expanded its suite of ultra-low-cost ETFs – branded ‘Prime’ – with the launch of a new fund tracking the US dollar-denominated investment-grade corporate bond market.
The Amundi Prime US Corporates UCITS ETF DR (PRIP LN) tracks the Solactive USD Investment Grade Corporate Bond Index which consists of more than 5,000 corporate debt securities with amounts outstanding of at least $400 million and at least 18 months remaining until maturity. The fund comes with an expense ratio of just 0.05%.
DWS expanded its range of responsible investment ETFs with the launch of a new fund targeting emerging market equities.
The Xtrackers ESG MSCI Emerging Markets UCITS ETF (XZEM LN) tracks the MSCI Emerging Markets ESG Leaders Low Carbon ex Tobacco Involvement 5% Index which selects its constituents from the MSCI Emerging Markets Index universe. The methodology screens out firms deriving significant revenue from controversial industries, producing high levels of greenhouse gases, or scoring below average according to MSCI’s broad ESG-based analysis. The fund comes with an expense ratio of 0.25%.
GSAM introduced its second ETF in Europe with the launch of a fund providing exposure to the Chinese government bond market.
The Goldman Sachs Access China Government Bond UCITS ETF (CBND LN) tracks the FTSE Goldman Sachs China Government Bond Index which measures the performance of renminbi-denominated fixed-rate bonds issued by the Chinese treasury and regional Chinese governments. The fund comes with an expense ratio of 0.35%.
Invesco launched a new ETF, offering investors a liquid and convenient vehicle to gain access to Kuwaiti equities ahead of the country’s promotion to emerging market status by index provider MSCI.
The Invesco MSCI Kuwait UCITS ETF (MKUW LN) tracks the MSCI Kuwait 20/35 Index which captures large and mid-cap securities and represents approximately 85% of the Arabian Gulf state’s total market cap. The largest security is capped at 35% and all other constituents are capped at 20%. The fund comes with a management fee of 0.50% and a swap fee of 0.40%.
Invesco also launched a GBP-hedged share class for its PIMCO US Dollar Short Maturity Source UCITS ETF (MIST LN).
The fund was one of the first actively managed ETFs to list in Europe and offers investors access to PIMCO’s global cash management expertise. It invests in baskets of US dollar-denominated short-term investment-grade debt securities, aiming to preserve capital and provide the potential for superior income and total returns compared to traditional money market funds. The new currency-hedged share class comes with an expense ratio of 0.40%.
UBS launched a new fixed income ETF providing exposure to global government bonds whilst taking into account ESG criteria.
The UBS ETF – JP Morgan Global Government ESG Liquid Bond UCITS ETF is the first global sovereign debt ETF to incorporate ESG screening. The fund is linked to the JP Morgan Global Government ESG Liquid Bond Index which harnesses the fixed income indexing capabilities of JP Morgan as well as the ESG data capabilities of Sustainalytics and RepRisk. It comes with an expense ratio of 0.15%.