BMO Global Asset Management is to withdraw from the European ETF market. In a letter to shareholders in its ETFs, the asset manager announced its intention to close all of its London-listed ETFs and cease managing ETFs domiciled in Europe. It said the decision was based on a variety of factors, including the current level of assets under management and projected asset growth in the current market environment. The ETF closures raise some important questions with respect to fund due diligence and issuer viability.

Lyxor has completed the integration of Commerzbank’s asset management business which includes €16 billion of assets under management and the ComStage suite of ETFs. The combined entity offers one of Europe’s largest ETF ranges, with over 300 products. Lionel Paquin, CEO of Lyxor Asset Management, said, “With a platform founded on ETF expertise and innovation, active asset management and a deep understanding of the German retail market, I am convinced that together we will be even better placed and better equipped to support our clients as their needs evolve”.

Euronext has marked the thirtieth anniversary of the French bellwether equity index – the CAC 40. The index is the most widely followed guage of the performance of French blue-chip stocks and the underlying reference for more than €6 billion worth of ETFs.

Societe Generale, the French investment giant behind Lyxor ETF, has agreed to acquire Commerzbank’s equity markets and commodities business. The business includes the German bank’s established ETF brand, ComStage, and its associated ETF market-making platform.

Frankfurt-headquartered exchange operator Deutsche Börse has celebrated the thirtieth anniversary of the launch of its bellwether index – the DAX. The DAX is the most widely followed reference for the performance of the German blue-chip equity market and has proven to be a popular choice for ETF investors with 17 DAX-linked ETFs commanding more than €17 billion in assets under management.

Commerzbank, the German bank behind the ComStage line-up of ETFs, has launched a new fund on Deutsche Börse’s Xetra and Frankfurt exchanges, offering exposure to the STOXX Europe 600 Index.

SIX Swiss Exchange reported a 13.7% drop in Q3 ETF trading volumes compared to Q2, with the majority of the decrease accounted for by equity ETFs, after the benchmark Swiss Market Index SMI traded sideways for much of the quarter. The year-on-year decline was a relatively modest 3.6%.

The results from Germany’s election are in and Angela Merkel’s centre-right coalition remains the largest force in parliament. But with the two largest parties recording their worst result since the 1940s and the far-right Alternative for Germany (AfD) party enjoying considerable support, the political direction of Germany has an added air of unpredictability. How has all this affected markets and, in turn, what’s been the impact on ETFs linked to German equities and bonds?

Exchange-traded funds tracking the STOXX 600 Europe Basic Resources Index have recorded impressive returns recently with the index gaining over 10% in the month to 25 July 2017. The index is tracked by ETFs from Lyxor, iShares, Deutsche Asset Management, ComStage and Source.

ETF provider Source has launched a new commodity ETF on Deutsche Börse’s Xetra platform.