Global asset manager Columbia Threadneedle Investments has launched three smart beta exchange-traded funds targeting global, international or US-listed dividend paying firms. The suite of rules-based, factor-driven, smart beta ETFs – called the Columbia Beta Advantage family – are launched on NYSE Arca. Each ETF’s custom-designed index is calculated by MSCI. To construct the indices, all securities from their parent index are screened according to their MSCI environmental, social and governance (ESG) scores, as well as their dividend yields. Smart beta ETFs are predicted to boom with BlackRock’s iShares predicting an annual organic growth rate of 19% to reach total global assets of $1tn by 2020.

In a latest study released by investment research house Morningstar, the firm found that high yield bond exchange-traded funds play a significant role in relieving market stress during volatile periods. Morningstar’s report – “High-Yield Bond ETFs – A Primer on Liquidity” – questions the vehicle’s presumed role in market instability, and outlines the crucial differences between the ETFs’ primary and secondary layers of liquidity. Jose Garcia-Zarate, Senior ETF Analyst for Morningstar’s European Passive Fund Research, commented: “Our analysis suggests that far from being agents of instability, high-yield bond ETFs have acted as a safety valve, allowing investors to express their investment views without unduly affecting the underlying market.”

European-listed exchange-traded funds and exchange-traded products recorded $2.68bn in net inflows during May, the 20th consecutive month of increases in net new assets for the region according to ETFGI, a leading consultant for the ETF industry. Year-to-date through end of May 2016, European ETFs/ETPs have seen net inflows of $17.32bn, bringing total assets to the region to over $530bn.

Exchange-traded product provider Boost ETP, a WisdomTree Europe company, has listed three new ETPs on the London Stock Exchange. The three funds offer investors leveraged exposure to the VIX Index, as well as leveraged and short exposure to emerging market equity. Viktor Nossek, Director of Research at WisdomTree Europe, said: “This years’ volatility underpinned by China’s slowdown and slumping commodities has soured sentiment in risk assets, forcing global growth expectations down and creating opportunities to position bearishly in equities…These new products provide investors with a new set of momentum and hedging opportunities within the Boost S&L ETP range.”

Leading exchange-traded fund provider WisdomTree has surpassed $1bn in assets under management (AUM) in its European-listed products. The company has maintained steady asset growth in Europe with year-to-date net inflows of $220m contributing the final stretch to the milestone. David Abner, recently appointed to lead the WisdomTree business in Europe, commented in a statement: “Reaching $1bn in AUM is a major milestone and we are pleased to see growth across our product range, demonstrating the broad appeal of our diversified offerings across smart beta UCITS ETFs and ETPs in commodities, equities and fixed income.”

Exchange-traded fund provider WisdomTree Europe has launched two ETFs targeting dividend-paying companies that have strong fundamental metrics with future dividend growth potential. Viktor Nossek, Director of Research at WisdomTree Europe, commented in a statement: “Investors are keen to explore more developed methodologies to gain access to dividend-related strategies and at WisdomTree, we believe in the power of dividends to deliver the potential for enhanced risk-adjusted returns.”

Global investment manager Janus Capital Group has rolled out four thematic exchange-traded funds offering exposure to companies whose businesses are involved in care for the elderly, health & fitness provisions, obesity treatments, and supplying organic consumer products. Each fund tracks a research-driven index compiled by Germany-based Solactive. Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group, commented in a statement: “Changes in demographics and lifestyle are altering the investment landscape. These thematic ETFs are designed to capitalize on those shifts to give advisors new tools that can help clients achieve better financial outcomes.”

Specialist smart beta exchange-traded fund provider Ossiam has signed the UN-supported Principles for Responsible Investment (PRI), representing a global network of asset managers, owners and service providers working together to put ethical investment into practice. Bruno Poulin, CEO of Ossiam, commented in a statement: “Since establishment Ossiam has maintained a responsible ethos in the investment strategies and funds we develop, as well as in our interaction with clients and partners and our views on the future of smart beta and exchange-traded funds. We are therefore very pleased to formalise our alignment with these values by joining Principles for Responsible Investment.”

Flows into global ETPs slowed in May to $10.7bn, just shy of the $11.1bn net inflows seen in April. The slowdown reflected the pullback in global risk sentiment, with fixed income exposures accounting for the majority of net inflows, according BlackRock’s ETP Landscape report. Fixed income net inflows registered $9.7bn, pushing cumulative flows into the asset class this year to $61.8bn – the best year-to-date performance in the history of the product. Ursula Marchioni, Chief Strategist, iShares EMEA at BlackRock, said: “With government bond yields at record lows, the influx of fixed income flows are going into credit-based exposures in the hope of getting whatever yields are left to scrap.”

Global assets in exchange-traded funds and exchange-traded products hit a record high at the end of last month, according to data from ETFGI’s May 2016 global ETF and ETP industry insights report. Assets invested in ETFs and ETPs reached $3.143tn at the end of last month, up 0.2% on the previous record set in April this year. Deborah Fuhr, managing partner at ETFGI, said in a statement: “There is still a significant amount of uncertainty in the markets due to Investors the upcoming Brexit vote and the expectation that the Fed will raise rates sooner than expected”