Twenty nine new ETFs or ETF share classes were listed on the London Stock Exchange in October, bringing the total number of new listings (including ETPs) to 299 in the year to date.
JP Morgan launched three actively managed ‘enhanced index’ ETFs on LSE during October.
The new listings consist of 162 equity products, 82 fixed income products, 42 commodity products, 12 currency products and 1 derivatives product.
There are now 1,145 ETFs and 486 other ETPs listed on the exchange (as of month-end), represented by 1,666 and 579 trading lines respectively across different currency, currency-hedged and distributing or accumulating share classes.
October highlights
Europe’s first independent white-label ETF platform HANetf launched its debut product, the EMQQ Emerging Markets and Ecommerce UCITS ETF (EMQQ LN). The fund is linked to the EMQQ Index, an index providing exposure to companies driving the growth of online consumption in the developing world. The fund comes with a total expense ratio (TER) of 0.86%.
The platform also partnered with GinsGlobal Index Funds, a provider of index-linked investment products, to launch two new global equity ETFs – HAN-GINS Global Innovative Technologies ETF (ITEK LN) and HAN-GINS Cloud Technology UCITS ETF (SKYY LN) – that provide exposure to the themes of innovative technology and cloud computing. Both ETFs come with TERs of 0.75%.
ITEK tracks the Solactive Innovative Technologies Index, consisting of companies operating across a broad range of sub-themes including robotics & automation, cloud computing & big data, cyber security, future cars, genomics, social media, augmented & virtual reality, and blockchain industries, while SKYY tracks the Solactive Cloud Technology Index, consisting of companies globally operating in the field of cloud-based software and services.
JP Morgan unveiled its first actively managed equity ETFs in Europe, with the launch of three funds providing access to broad market portfolios of global, US, and European stocks whilst taking into consideration environmental, social and governance (ESG) factors.
The funds are the JPM Europe Research Enhanced Index Equity (ESG) UCITS ETF (JREE LN), benchmarked against the MSCI Europe; the JPM US Research Enhanced Index Equity (ESG) UCITS ETF (JREU LN), benchmarked against the S&P 500; and the JPM Global Research Enhanced Index Equity (ESG) UCITS ETF (JREG LN), benchmarked against the MSCI World.
The funds are being pitched as ‘enhanced index’ products, designed to offer similar risk and portfolio construction characteristics to their traditional market cap benchmarks but with an enhanced level of return. Each ETF comes with a TER of 0.25%.
BlackRock launched a new suite of sustainability-focused equity ETFs. The six ETFs offers global, US, Japan, European, eurozone, and emerging markets exposure and are aimed at the growing number of investors seeking to better align their moral values with long-term investment objectives.
The funds, which track ESG-screened versions of some of MSCI’s best known single-country and regional indices, are being marketed as part of iShares’ ‘Core‘ ETF range – low-cost funds designed as primary building blocks for investors’ portfolios.
The ETFs and their TERs are as follows:
iShares MSCI World ESG Screened UCITS ETF (SAWD LN); 0.20%
iShares MSCI Japan ESG Screened UCITS ETF (SAJP LN); 0.20%
iShares MSCI Emerging Markets IMI ESG Screened UCITS ETF (SAEM LN); 0.18%
iShares MSCI Europe ESG Screened UCITS ETF (SAEU LN); 0.12%
iShares MSCI EMU ESG Screened UCITS ETF (SAUM LN); 0.12%
iShares MSCI USA ESG Screened UCITS ETF (SASU LN); 0.07%
Invesco launched the Invesco Variable Rate Preferred Shares UCITS ETF (VRPS LN) which became Europe’s first ETF to offer exposure to the $250 billion variable rate preferred shares market. Its TER is 0.50%.
Meanwhile Franklin Templeton Investments expanded its suite of Europe-listed ETFs with the launch of the Franklin LibertyQ AC Asia Ex Japan UCITS ETF (FLQA LN). The multi-factor smart beta ETF tracks the proprietary LibertyQ AC Asia Ex Japan Equity Index which has a specific focus on quality and value stocks within the Asia Pacific ex-Japan equity universe, but also encompasses other factors including momentum and volatility. It comes with a TER of 0.40%.
Lastly, Lyxor and Tabula Investment Management introduced new share classes of existing funds.