ETFs providing exposure to gold are prospering from strong returns and record inflows as investor nerves spur allocation increases, pushing the price of the metal to record highs. The SPDR Gold Shares (GLD US) has led the pack, growing to more to $77.9bn in assets under management.

Amundi has expanded its range of ‘Prime’ ETFs with the launch of two new funds providing low-cost exposure to UK mid- and small-cap equities and to short-duration US Treasury bonds. The funds have been priced in line with existing Prime-branded ETFs and come with expense ratios of just 0.05%. Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, commented, “When we launched our industry-leading low-cost range of ETFs last year, we committed to listening to our clients and developing solutions to match their needs. These new funds offer investors the opportunity to complement their portfolios with additional cost-effective core ETF exposures.”

Invesco has launched a sterling-hedged version of its blockbuster physical gold ETC. Chris Mellor, Head of ETF Equity and Commodity Product Management at Invesco, said, “Many investors this year have told us they want exposure to the gold price but not the currency risk attached to a US dollar asset. We are now able to offer these investors currency-hedged versions of the Invesco Physical Gold ETC, our largest exchange-traded product in Europe.”

UniCredit has slashed the expense ratio for the €70 million ($80m) UC Axiom Global CoCo Bonds UCITS ETF (CCNV GY) from 0.65% to 0.39%. The fund tracks the Solactive AXI Liquid Contingent Capital Global Market TR Index – Euro Hedged, providing exposure to the global contingent convertible (CoCo) bond market including both the Additional Tier 1 (AT1) and Restricted Tier 1 (RT1) segments.

By Pasquale Capasso, EMEA ETF Capital Markets at Invesco.

When the Financial Conduct Authority looked into the functioning of ETFs during previous bouts of volatility, the findings appeared to support ETF issuers’ claims about liquidity. The study was performed months before anyone had even heard of the coronavirus, with the UK regulator responding to concerns that were at the time more focussed on the escalating trade war. COVID-19 put the spotlight on ETFs once again, with analysis not in hindsight but in real-time. ETFs have once again performed admirably, but the period has highlighted certain areas where we believe the fixed income market can be improved.

Following another month of strong investor demand, gold ETFs globally have recorded greater inflows year-to-date (as of 31 May) than in any full calendar year period, according to data from the World Gold Council. Gold ETFs added 154 tonnes of new gold assets last month, equating to $8.5bn net inflows, despite rebounding stock markets.

ETFs providing exposure to fallen angel bonds may offer investors a significant value opportunity due to price dislocations caused by the onslaught of downgrades in the wake of Covid-19.

First Trust has launched a pair of equity ETFs in Europe that seek to capitalize on two in-demand and widely received investment themes: cybersecurity and biotechnology. Rupert Haddon, Managing Director, Head of Sales and Distribution, First Trust, added, “Cybersecurity and biotechnology are two of the world’s fastest-growing themes and we are incredibly excited to be adding to our suite of innovative thematic UCITS ETFs which should give investors precise tools to better express their own investment beliefs.”

Legg Mason has introduced an actively managed ETF harnessing the innovative ActiveShares product structure. The ClearBridge Focus Value ETF (CFCV US) has listed on Cboe BZX Exchange and is sub-advised by Legg Mason affiliate, ClearBridge Investments.

The UK Debt Management Office, the executive agency responsible for carrying out the UK government’s debt management, has sold gilts with negative yields for the first time in its history. The pricing of the issuance is a manifestation of the disruption Covid-19 has wrought upon the global economy and financial markets with accompanying investment portfolio asset allocation shifts being reflected in ETF markets.