HSBC Global Asset Management has introduced a suite of sustainable equity ETFs on the London Stock Exchange. The funds are linked to newly created indices from FTSE Russell that provide exposure to companies with low carbon and strong environmental, social, and governance (ESG) profiles. The suite initially comprises three ETFs focused on US, European, and Japanese equity markets.

By Robin Marshall, Director, Fixed Income, FTSE Russell.

The Fed recently broadened the range of assets it will buy in Quantitative Easing (QE) programs to include corporate bonds and sub-investment grade issues, supplementing US Treasuries and (agency) MBS. Given the severity and broad-based nature of the shock to the US economy from the coronavirus, this begs the question as to whether the Fed will follow the Bank of Japan’s lead and include US equities in its range of QE assets?

BlackRock has launched a trio of new multifactor ETFs on Cboe BZX Exchange targeting the three main size segments of the US equity market. The funds track indices from FTSE Russell that favour stocks with strong momentum, quality, value, size, and low volatility characteristics.

FTSE Russell and the Johannesburg Stock Exchange have partnered on a series of co-branded fixed income indices measuring the performance of domestic bonds issued in South Africa. The indices provide comprehensive coverage of South African sovereign, state-owned, and corporate bonds but come at a troubling time for the country which has recently been downgraded to sub-investment-grade territory.

S&P Dow Jones Indices (S&P DJI) has launched a series of new real estate index that favour real estate companies with strong track records in sustainability. The indices are an extension of the Dow Jones Select Real Estate Securities Indices (RESI) and consists of four indices covering the US, global, global ex-US, and Japanese property markets.

BlackRock has launched a new fixed income ETF in Japan providing low-cost exposure to Japanese government bonds. The iShares Core Japan Government Bond ETF (2561 JP) has listed on the Tokyo Stock Exchange and comes with an expense ratio of just 0.06%.

BMO Global Asset Management has launched a new fixed income ETF that is the first to provide targeted exposure to Canadian mortgage-backed securities.

Japanese asset manager Mitsubishi UFJ Kokusai AM has launched a new ETF providing broad exposure to Japan’s equity market while tilting in favour of sectors and companies with lower carbon emissions. The MAXIS Carbon Efficient Japan Equity ETF (2560 JP), which has listed on the Tokyo Stock Exchange, is linked to the S&P/JPX Carbon Efficient Index and comes with an expense ratio of 0.125%.

Frankfurt-based index provider Solactive has unveiled two new series of equity indices, in partnership with Institutional Shareholder Services, for investors who specifically wish to integrate low carbon and climate change considerations into their portfolios.

By the ETF research team at Invesco.

With the Brexit leaving date quickly approaching, how is your portfolio positioned? If you are considering gaining exposure to UK equities, do you want to focus on the largest companies (FTSE 100) that generate earnings from all around the world or medium-sized companies (FTSE 250) that generate more of their earnings from domestic markets? Whatever your view, a passive ETF can offer efficient, low-cost exposure to the index.