Seventeen new ETFs or additional ETF share classes were listed on the London Stock Exchange (LSE) in July 2019.
Seventeen new ETFs or additional ETF share classes listed on LSE in July
Following the new listings, there are now 1,251 ETFs (available through 1,808 different share class) and 450 other ETPs (available as 542 lines) on the London market.
ETF providers that carried out listings during the month included Invesco, Legal & General Investment Management (LGIM), Lyxor, JP Morgan Asset Management, Vanguard, and BlackRock.
Highlights
Invesco launched new GBP-hedged share classes for two Treasury bond ETFs that target the short end and the full length of the yield curve. They are the Invesco US Treasury Bond 1-3 Year UCITS ETF GBP Hedged (T3GB LN) and the Invesco US Treasury Bond UCITS ETF GBP Hedged (TRGB LN). Each new share class comes with a total expense ratio (TER) of 0.10%.
LGIM expanded its range of thematic equity ETFs with the launch of three new ‘disruptive technology’ funds designed to capitalize on investment opportunities in artificial intelligence, healthcare, and clean water. The funds are the L&G Artificial Intelligence UCITS ETF (AIAI LN), the L&G Healthcare Breakthrough UCITS ETF (DOCT LN), and the L&G Clean Water UCITS ETF (GLUG LN). Each comes with a TER of 0.49%.
Lyxor launched Europe’s first ETF to provide emerging market equity exposure while avoiding stocks from China. The Lyxor MSCI Emerging Markets Ex China UCITS ETF (EMXC LN) tracks the MSCI Emerging Markets ex China Index via a synthetic (or swap-based) replication approach. The index covers large- and mid-cap companies within 25 developing economies, excluding China. The fund comes with a TER of 0.30%.
Lyxor also cross-listed two ETFs on LSE, providing exposure to small-caps from the EMU (Economic and Monetary Union) and banking stocks from eurozone countries. They are the Lyxor MSCI EMU Small Cap UCITS ETF (MMS LN) and Lyxor Euro Stoxx Banks UCITS ETF (BNKE LN), which come with TERs of 0.40% and 0.30%, respectively.
JP Morgan Asset Management launched its first multi-factor equity ETFs in Europe. The JPMorgan Global Equity Multi-Factor UCITS ETF (JPGL LN) and JPMorgan US Equity Multi-Factor UCITS ETF (JPUS LN) track proprietary indices that provide smart beta exposure to global developed and US equity portfolios while targeting returns attributable to value, quality, and momentum factors. Each fund comes with an expense ratio of 0.19%.
JP Morgan also expanded its ‘BetaBuilders’ suite of low-cost, passively managed ETFs marketed as portfolio building blocks with the launch of the JPM BetaBuilders US Treasury Bond 0-1 yr UCITS ETF (BBIL LN). The fund, which provides ultra-short-duration exposure to US government securities, comes with a TER of just 0.10%.
Vanguard introduced new accumulating share classes for four equity ETFs listed in Europe. The funds are linked to indices from FTSE Russell and provide exposure to large- and mid-cap stocks from the global, North American, developed Europe, and developed Europe ex-UK equity universes. They are the Vanguard FTSE All-World UCITS ETF, TER – 0.25%; Vanguard FTSE North America UCITS ETF, TER – 0.10%; Vanguard FTSE Developed Europe UCITS ETF, TER – 0.12%; and Vanguard FTSE Developed Europe ex UK UCITS ETF, TER – 0.12%.
BlackRock launched a sterling-hedged share class for one of its sustainability-themed fixed income ETFs listed in Europe. The iShares € Corp Bond ESG UCITS ETF GBP Hedged (SUOG LN) is linked to the Bloomberg Barclays MSCI Euro Corporate Sustainable SRI Index which provides exposure to euro-denominated corporate bonds from issuers that have been screened by environmental, social, and governance (ESG) criteria. The GBP-hedged share class comes with a TER of 0.17%.