First Trust has launched two new actively managed ETF on the NYSE that seek to capture upside price movements in rising markets and reduce downside risk when markets decline. Sub-advised by Horizon Investments, the funds use a proprietary quantitative rules-based investment process to manage volatility. Robbie Cannon, President & CEO at Horizon, said: “In this low interest rate environment, we are seeing all kinds of investors participating more and more in equity markets, even those who traditionally looked to fixed income markets…And while they want equity exposure, they naturally are looking for lower risk and lower volatility products.”

Principal has launched two thematic ETFs targeting US healthcare innovators and global firms catering for the millennial generation. The Principal Healthcare Innovators Index ETF (Nasdaq: BTEC) and the Principal Millennials Index ETF (Nasdaq: GENY), both listed on Nasdaq, join an increasing number of thematic ETFs seeking to take advantage of secular demographic trends. Paul Kim, Managing Director of ETF Strategy for Principal Global Investors, said: “More and more, people want to invest in strategies they understand, whether that is a cause they support or their own lifestyle. It is our goal to provide investment options that connect with people while offering enhanced performance.”

London-based ETF Securities will close its ETFS S-Network Global Agri Business GO UCITS ETF at the end of August, but agriculture-focused exchange-traded funds remain a compelling proposition as the global food supply/demand imbalance continues. The fund launched in 2008 but insufficient investor demand – current AUM is £12.4m – has led ETF Securities to decide its relatively small size did not make it worth paying the associated operating costs. Shareholders who have not sold their holding before 31 August will have their shares automatically redeemed for cash.

Exchange-traded funds and exchange-traded products continued their upward march in July, with global assets reaching a new record high of $3.343 trillion driven by positive market performance and $52.7bn of net inflows. Various new regional record highs were also set, with the US hitting $2.367tn in ETF/ETP assets, Europe reaching $539.2bn, Japan at $191.8bn and Canada at $81.2bn. iShares continues to dominate the market, gathering the largest net inflows in July with $23.5bn, followed by SSGA SPDR with $14.3bn and Vanguard with $7.2bn.

iSectors, a US investment strategist firm, has debuted an actively managed multi-asset ETF designed to optimize investor return and minimize downside risk. Listed on Nasdaq, the iSectors Post-MPT Growth ETF (NASDAQ: PMPT) is based on the firm’s flagship quantitative factor-driven investment model, the iSectors Post-MPT Growth Allocation. “We developed the iSectors PMPT Growth ETF to answer advisors’ call for a more easily accessible form of iSectors Post-MPT Growth Allocation,” noted Chuck Self, Chief Investment Officer of iSectors. “We launched PMPT for risk-averse investors, seeking downturn protection while still benefitting from possible market gains.”

Exchange-traded funds are increasingly being used by investors to positions themselves for, and react to, major global events. It comes as the range of strategies available increases, catering to investor demand for tactical solutions. These were the latest findings in BMO Global Asset Management’s semi-annual ETF Outlook Report, which highlighted key trends in the ETF industry over the first half of this year. Mark Raes, Head of Product, BMO Global Asset Management, commented: “Investors are recognising the value of using ETFs both as long term holdings and as a trading tool to manage market uncertainty and take advantage of short term market movements.”

Global flows into emerging market ETFs have surged as investors tire of the European and Japanese central bank trade and the capital market “sweet spot” of the post-Brexit world continues. According to Bloomberg data, US-listed emerging market ETFs have taken in about $17bn and Europe-based emerging market ETFs have gathered $12bn this year to 3 August. The money was spread across 54 different European-based ETFs, in addition to 46 US-based funds. “This trend is deep and wide, it’s not just a few institutions getting excited,” Eric Balchunas, senior ETF analyst at Bloomberg, told ETF Strategy.

Maryland-based asset manager Calvert Investments has launched an index tracking globally-listed firms with low carbon emissions, those that are actively reducing their greenhouse gas emissions, or those expanding their use of renewable energy sources. The Calvert Energy Research Index, the seventh addition to the firm’s suite of responsible indices and its second research index, has been designed to form the basis for future passive investment products such as exchange-traded funds.

Australian exchange-traded fund provider BetaShares has launched two currency-hedged ETFs aimed at providing investors with exposure to the global healthcare and agriculture industries – the BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) and the BetaShares Global Agriculture Companies ETF – Currency Hedged (ASX: FOOD). Alex Vynokur, managing director of BetaShares, commented: “…the BetaShares Global Sector ETF family can enable Australian investors to further evolve their existing portfolios by obtaining access to globally significant industry sectors in a convenient and cost effective way.”

Five new exchange-traded funds/exchange-traded products were listed on the London Stock Exchange (LSE) during July, bringing the total number of new ETF/ETP listings for 2016 to 97. Total on-exchange value traded for ETFs and other ETPs in July 2016 was £37.1bn, up by 77% compared to July 2015, while total on-exchange value traded for ETFs and ETPs, year to date, is £216.7bn, up by 42% compared to the same period last year.