Sixteen new ETFs/ETPs or additional ETF share classes were listed on the London Stock Exchange in June 2019.
There are now 1,243 ETFs and 450 other ETPs listed on London Stock Exchange.
ETF providers introducing new products included Franklin Templeton, Invesco, Ossiam, Vanguard, VanEck, and Krane Fund Advisors.
Highlights
Franklin Templeton launched its first purely passive ETFs in Europe, a suite of four single-country funds providing exposure to the emerging equity markets of Brazil, China, South Korea, and India.
They are the Franklin FTSE Brazil UCITS ETF (FVUB LN), the Franklin FTSE China UCITS ETF (FRCH LN), the Franklin FTSE Korea UCITS ETF (FLRK LN), and the Franklin FTSE India UCITS ETF (FRIN LN).
The funds are linked to capped, market capitalisation-weighted indices from FTSE Russell which target large- and mid-cap companies. The indices are part of FTSE Russell’s 30/18 Capped range which limit the weight of the largest stock to 30% and the weight of any remaining stock to 18% in a bid to promote diversification.
Invesco unveiled a suite of three low-cost equity ETFs in Europe that screen companies based on environmental, social, and governance (ESG) characteristics.
They are the Invesco MSCI World ESG Universal Screened UCITS ETF (ESGW LN), the Invesco MSCI USA ESG Universal Screened UCITS ETF (ESGU LN), and the Invesco MSCI Europe ESG Universal Screened UCITS ETF (ESGE LN).
The funds are linked to ESG-screened versions of well-known MSCI indices that target the global developed (MSCI World), US (MSCI USA), and European (MSCI Europe) equity markets. And with expense ratios ranging between 0.12% and 0.19%, the funds have been priced to compete with low-cost ESG suites offered by rivals such as BlackRock, Lyxor, and UBS.
Ossiam launched a new smart beta fund with a strong sustainability profile – the Ossiam US ESG Low Carbon Equity Factors UCITS ETF (OUFU LN).
The fund first screens a broad universe of US equities to remove stocks with poor ESG characteristics before using two optimization processes to form a portfolio that tilts towards low carbon stocks as well as those with returns attributable to momentum, size, value, and low volatility factors.
Vanguard launched a new fixed income ETF which provides broad and diversified exposure to investment-grade bonds across multiple sectors and segments from both developed and emerging market issuers.
The Vanguard Global Aggregate Bond UCITS ETF (VAGP LN) is linked to the Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index which covers a universe of over 23,500 investment-grade bonds issued by governments, corporates, and agencies. With an expense ratio of 0.10%, the fund matches the fees charged on similar funds offered by BlackRock and SPDR ETFS.
VanEck launched the VanEck Vectors Video Gaming and eSports UCITS ETF (ESPO LN) in Europe.
The fund provides thematic exposure to companies closely related to the theme of video gaming and eSports and replicates the strategy behind a similar US-listed VanEck ETF that launched in October last year. It comes with an expense ratio of 0.55%. VanEck is the first ETF issuer in Europe to target the video gaming and eSports industry, gaining first-mover advantage in a fast-growing theme.
China-focused ETF issuer Krane Funds Advisors unveiled its second ETF in Europe with the launch of the KraneShares MSCI China A Share UCITS ETF (KBA LN).
The fund tracks the MSCI China A Index, mirroring the strategy of a $700m ETF offered by KraneShares in the US. The MSCI China A captures the performance of large- and mid-cap China A-share equities. The index is designed for international investors and covers only those securities that are eligible for trading via the Stock Connect schemes.
Its composition also reflects the full list of China A-share securities that index provider MSCI plans to include within the flagship MSCI Emerging Markets Index by the end of November 2019, following the conclusion of its latest China A-share eligibility review.
There are now 1,243 ETFs (available as 1,791 lines through multi-currency offerings) and 450 other ETPs (available as 542 lines) on our London market.