By Matthew J. Bartolini, Head of SPDR Americas Research, State Street Global Advisors.

There are many considerations to weigh when choosing from the more than 2,000 US-listed ETFs, not least of which is cost. However, many analyze cost based on expense ratio alone, when the reality is that this is just one piece of the total cost of ownership (TCO) puzzle – trading costs can also be a significant piece. When conducting ETF due diligence, it’s important for investors to understand what TCO really means.

VanEck has launched an actively managed ‘fund of funds’ ETF targeting the municipal bond market. The VanEck Vectors Municipal Allocation ETF (MAAX US) invests in municipal bond ETFs with asset allocation guided by a proprietary model. It has been listed on Cboe BZX. Ed Lopez, Head of ETF Product at VanEck, commented, “By combining technical indicators with certain traditional fixed income risk factors, it is possible to build a clearer picture of the risk profile of the overall municipal bond market…MAAX could be a compelling way to approach the municipal bond market.”

Horizons ETFs has launched Canada’s first ETF to provide pure-play thematic exposure to the global uranium sector. The Horizons Global Uranium Index ETF (HURA CN) has listed on the Toronto Stock Exchange and comes with a management fee of 0.75%. The fund is linked to the Solactive Global Uranium Pure-Play Index which covers relevant developed market companies globally that have market capitalizations greater than C$40m. Nick Piquard, Portfolio Manager at Horizons ETFs, commented, “Nuclear is the only viable solution to supply zero-emission-base-load-power, and currently, there is not enough uranium being mined to meet planned growth. These factors combined make for a very positive opportunity for the uranium mining sector.”

By Randy Frederick, Vice President of Trading and Derivatives, Charles Schwab.

Have you ever spent hours identifying a potential trade, only to see the stock drop on unexpected company news, be it a sudden CEO departure, a product recall, or a public inquiry? For traders who have a hard time stomaching such uncertainty, ETFs may be able to help.

The European ETF industry is expected to experience robust growth in the coming years, with assets hitting €2 trillion by 2024, spurred by favourable regulatory changes, innovation, and an increasing acknowledgement of the benefits of low-cost investing. That’s according to analysis from investment research firm Morningstar. Hortense Bioy, Director, Passive Strategies and Sustainability Research, Morningstar, commented, “The well-entrenched trend of investor preference for low-cost investment solutions continues to support our positive outlook for the European ETF industry.”

By Matthew J. Bartolini, Head of SPDR Americas Research, State Street Global Advisors.

Based on key systemic and persistent traits, high yield corporate bonds should be viewed as a strategic asset class within the portfolio construction process – even if the flow patterns within high yield ETFs indicate a more tactical investor mindset.

Acquirers Funds has unveiled its debut ETF – the Acquirers Fund (ZIG US) – on NYSE Arca, providing access to a long-short, deep value strategy that consists of long positions in undervalued, fundamentally strong equities and short positions in overvalued, financially weak companies. Tobias Carlisle, Founder of Acquirers Funds, commented, “Value spreads are widest since the run-up to the Great Depression and the Dot Com bubble…as a concentrated, long/short deep-value fund, ZIG is designed to maximally exploit this rare opportunity.”

Exchange-traded funds linked to the MSCI EM Index and MSCI ACWI are prepping for a major rebalance ahead of the implementation of MSCI’s semi-annual index review at the end of May, which will see Saudi Arabia and Argentina added and China’s weight increased. The two benchmarks act as underlying reference indices for numerous ETFs, accounting for many tens of billions of dollars of assets under management. Among the largest to be affected are the $57bn iShares Core MSCI Emerging Markets ETF (IEMG US) and the $10bn iShares MSCI ACWI ETF (ACWI US).

Hong-Kong based index provider Hang Seng Indexes has launched its first indices that are built using environmental, social, and governance (ESG) considerations. The HSI ESG Index and HSCEI ESG Index are socially responsible versions of two of the firm’s most widely recognized benchmarks – the Hang Seng Index and Hang Seng China Enterprises Index. Vincent Kwan, Chief Executive Officer, Hang Seng Indexes, commented, “ESG investing is continuing to gain momentum in markets around the world. Our new HSI ESG Index and HSCEI ESG Index provide bases for product issuers to develop investment products linked to the portfolios of our flagship indexes but with a greater emphasis on ESG.”

Quadratic Capital has introduced its debut ETF – the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL US) – on NYSE Arca. The actively managed fund seeks to hedge against an increase in inflation, and to profit from an increase in interest rate volatility and a steepening of the yield curve. “IVOL is the next big step in the democratization of the markets. IVOL provides access to the largest OTC markets that have previously been largely unavailable to most advisors and the vast majority of investors,” said Nancy Davis, Founder and Chief Investment Officer, Quadratic Capital.