Californian asset manager Franklin Templeton Investments has launched LibertyShares, its new exchange-traded fund arm. The provider has officially begun operations with the launch of four new smart beta funds known as LibertyQ ETFs, offering exposure to global, emerging market and international stocks. Each fund tracks a proprietary, research-driven index which targets exposure across four factors (value, quality, momentum and low volatility) which have historically provided superior returns to market cap-weighted benchmarks over the long-term.

Leading index provider to the exchange-traded fund industry FTSE Russell has launched ten smart beta sustainability-themed equity indices based on a new analytical tool which scores companies by the proportion of their revenues derived from ‘green’ pursuits – goods, products and services that directly help the world to alleviate the impact of climate change, resource depletion or environmental erosion. Mark Makepeace, Chief Executive of FTSE Russell, said in a statement: “FTSE Russell has long been a pioneer in the development of ESG benchmarking tools. As such, we identified a significant gap in the ability of portfolio managers to track exposure to the increasing shift towards a green economy.”

An increasing number of asset managers are using exchange-traded funds to get passive fixed income exposure, according to research from global analytics firm Cerulli Associates. Cerulli found that the broad ETF industry experienced another month of positive net inflows with more asset managers using ETFs as vehicles for fixed income exposure. According to the report, US ETF assets grew for a third straight month in April, increasing 1.7% to finish just greater than $2.2tn. Flows into the funds were positive, at $8.9bn with significant demand noted for taxable bond ETFs, which garnered flows of $3.1bn.

Smart beta index provider ERI Scientific Beta has announced a fresh approach to index pricing that may disrupt the traditional model of fixed fees on assets under management. Investors will be able to request a pure performance fee structure that levies charges only if the index has actually outperformed its cap-weighted benchmark. The fee structure is available on the Scientific Beta Multi-Beta Multi-Strategy indices. Noël Amenc, CEO of ERI Scientific Beta, said: “Our rationale for this mandate offer is that smart beta providers’ claims on the quality and robustness of their strategies should materialise in their live performance. ERI Scientific Beta’s initiative is intended to provide consistency between the smart beta provider’s revenues and the quality of its offering.”

Leading financial data provider Bloomberg has launched the Bloomberg Financial Services Gender-Equality Index, representing companies within the financial services sector that have adopted best-in-class policies promoting gender diversity. The launch is the latest addition to a string of index and investment product launches including exchange-traded funds that promote social equality. Angela Sun, Head of Strategy and Corporate Development at Bloomberg, commented: “Evidence demonstrates that gender-equality policies and practices can affect a company’s financial performance, productivity and ability to retain top talent.”

Germany-based index provider Solactive AG and global thematic funds specialist Sarasin & Partners have unveiled a suite of five new indices targeting smart beta equity exposure in the UK, Europe, the US, and globally. The Sarasin’s Systematic Efficient Approach Indices, designed to provide core building blocks for asset allocators, seek to outperform the market-cap over the medium-long term and across multiple market cycles by tilting exposure to three proven drivers of return: momentum, low volatility and size. Steffen Scheuble, CEO, Solactive, commented in a statement: “Solactive is happy to announce our cooperation with Sarasin & Partners on the calculation of indices that not only aim to outperform country markets but also employ a sophisticated and proven methodology – a methodology that is passionate about obtaining a sustainable profit in the mid-long term.”

New York-based exchange-traded funds provider Global X Funds has launched two new thematic ETFs that aim to take advantage of evolving global demographics. The Global X Longevity Thematic ETF (LNGR) invests in companies that are well positioned to serve the world’s growing senior citizen population, and the Global X Health & Wellness Thematic ETF (BFIT) seeks to harness the effects of changing consumer lifestyles by investing in companies geared toward promoting physical activity and well-being. Jay Jacobs, Director of Research at Global X, commented: “Thematic investing is a growth-oriented investment strategy that has long been available to institutional investors. We’re excited to continue expanding our suite of thematic ETFs designed to benefit from some of the major changes impacting the global economy.”

Winterflood Business Services (WBS) has announced it will offer trading and custody of fractional shares on exchange-traded funds from July this year. According to a press release from WBS, the new service will allow ETFs to trade at four decimal places and is expected to open up access for more discretionary fund managers and financial advisers to trade ETFs. “The provision of fractional share dealing is removing a major barrier. We believe this a watershed moment,” said Alex Kerry, head of WBS. “With increased understanding of the benefits ETFs can provide to underlying clients and the wider trend for passives, there are now real signs the ETF market is poised to take off.”

Tokyo head-quartered Nikko Asset Management has announced it is set to launch an exchange-traded fund that tracks a Japanese equity index made up of firms taking proactive and efficient measure with their investments in capital expenditure and human capital. The ETF will start trading on the Tokyo Stock Exchange on 25th May. It will track the JPX/S&P CAPEX & Human Capital Index, which has been developed by the Japan Exchange Group (JPX) and S&P Dow Jones Indices. The JPX/S&P CAPEX & Human Capital Index consists of firms actively and efficiently engaged in capital expenditure and human capital investment. Specifically, the top 200 stocks are selected to be used in the index by first screening constituents of the TOPIX.

The VanEck Vectors Morningstar Wide Moat ETF (MOAT), has outperformed the S&P 500 Index by more than 10% year-to-date (30 April 2016), based on net asset value returns. “While the short-term performance of MOAT is strong, just as notable is the long-term track record of its underlying wide moat index strategy,” said Brandon Rakszawski, ETF Product Manager at VanEck. “MOAT’s underlying index has, in fact, outperformed the S&P 500 Index by more than 400 basis points on an annualized basis from the launch of MOAT’s index on 14 February 2007 through 30 April 2016.