DWS has unveiled a new socially responsible ETF in Europe providing exposure to euro-denominated, short-term bonds from corporate issuers.

State Street Global Advisors has launched a new ETF that offers a socially responsible alternative to the $290 billion SPDR S&P 500 ETF (SPY US), its flagship ETF, and the largest ETF globally. The SPDR S&P 500 ESG ETF (EFIV US) has listed on NYSE Arca and comes with an expense ratio of 0.10%. Sue Thompson, Head of SPDR Americas Distribution, commented, “EFIV meets growing demand for cost-effective solutions that help put ESG investing into action by offering investors an ETF that seeks to track a more sustainable version of one of the most renowned benchmarks in the world.”

Exchange-traded products recorded their highest monthly inflows this year in June with $71.5 billion added, primarily due to a surge of interest in fixed income exposures such as investment-grade credit and inflation-linked products, according to BlackRock’s latest Global ETP Flows Report.

By Deborah Fuhr, Managing Partner and Founder of ETFGI.

The Federal Reserve announced on March 23rd that it would purchase corporate bonds for the first time in its 107-year history.  The Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility (SMCCF) would begin purchases of ETFs on May 12th.

DWS has introduced a new physically backed exchange-traded commodity in Europe providing exposure to movements in the spot price of silver. The Xtrackers IE Physical Silver ETC Securities has listed on London Stock Exchange and Xetra and is available in US dollar, euro, and euro-hedged trading lines. The launch coincides with an impressively strong rally in silver prices with the precious metal up 44.4% since 19 March 2020.

DWS has introduced its first fixed income ETFs in the US to incorporate environmental, social, and governance (ESG) factors. The funds, which have been created by repurposing a trio of unloved existing listings, provide exposure to USD-denominated investment grade, high yield, and EM sovereign bonds. Luke Oliver, Head of Index Investing for the Americas at DWS, commented, “Our growing Xtrackers ETF suite continues to deliver ESG solutions across core benchmarks, which can help align client portfolios with business models at the intersection of shareholder and stakeholder value creation.”

DWS has launched new physically backed, Irish-domiciled exchange-traded commodities in Europe providing exposure to movements in the spot price of gold and platinum. The newly launched Xtrackers IE Physical Gold ETC and Xtrackers IE Physical Platinum ETC have listed on London Stock Exchange and Xetra, and come with competitive fees of 0.18% and 0.38% respectively. The ETCs are 100% backed by LBMA (London Bullion Market Association) physical metal bars stored in secure London vaults.

VanEck has announced changes to two single-country emerging market ETFs listed on NYSE Arca. Effective 1 May 2020, the funds, which currently track market-cap-weighted equity indices on Chinese large-caps and Indian small-caps, will adopt new indices provided by MarketGrader offering a fundamentals-based ‘GARP’ approach.

Gold ETFs experienced global net inflows of $4.9 billion in February, increasing their collective holdings by 84.5 tonnes to reach a new all-time high of 3,033t, according to data from the World Gold Council. Strong inflows were observed in all regions as market uncertainty surrounding the potential impact of the coronavirus outbreak on the global economy triggered a switch into the safe-haven asset.

UBS Asset Management has launched a new ETF offering access to China’s onshore equity market. The UBS ETF (IE) MSCI China A SF UCITS ETF has listed on SIX Swiss Exchange, LSE and Xetra, and provides exposure to the MSCI China A Index of Mainland China, renminbi-traded large- and mid-cap companies. Andrew Walsh, Head of ETF & Passive Specialists – UK & Ireland, UBS Asset Management, commented, “China’s significant role in the global economy means allocations to the country are no longer a niche investing approach. Given its weight, we believe China should be treated as a standalone allocation of its own. “