Sixteen new ETFs/ETPs or additional ETF share classes were listed on the London Stock Exchange in June 2019. ETF providers introducing new products included Franklin Templeton, Invesco, Ossiam, Vanguard, VanEck, and Krane Fund Advisors.

Invesco has launched new ETF share classes on London Stock Exchange and SIX Swiss Exchange, providing access to different segments of the US Treasury bond market while hedging currency exposure to pound sterling. They are the Invesco US Treasury Bond 1-3 Year UCITS ETF GBP Hedged (T3GB LN, T3GB SW) and the Invesco US Treasury Bond UCITS ETF GBP Hedged (TRGB LN, TRGB SW).

Gold-linked ETFs are benefitting from a rally in the gold price of 9.4% over the past month. According to analysts, the rally is a result of dovish rhetoric from the US Federal Reserve, concerns over a slowdown in US and global economic growth, and rising geopolitical tensions.

Alternative investments are playing an increasingly important role within investors’ portfolios, according to research by BlackRock, the asset manager behind the iShares brand of ETFs.

Invesco has launched a suite of low-cost ETFs in Europe that screen companies based on ESG characteristics within the global developed, US, and European equity markets. With expense ratios ranging between 0.12% and 0.19%, the Invesco MSCI World ESG Universal Screened UCITS ETF, Invesco MSCI USA ESG Universal Screened UCITS ETF, and Invesco MSCI Europe ESG Universal Screened UCITS ETF have been priced to compete with similar funds offered by rivals such as BlackRock, Lyxor, and UBS. Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, commented, “As ESG strategies become mainstream, many investors are now wanting to use them as core holdings for their portfolios. That places a greater emphasis on transparency, overall costs, and the volatility compared to other funds.”

BlackRock has slashed the fees on two of its largest fixed income ETFs providing exposure to UK government bonds, commonly known as gilts. The ongoing charges figure (OCF) for the iShares Core UK Gilts UCITS ETF (IGLT LN) has been reduced to 0.07% from 0.20%, while the iShares GBP Index-Linked Gilts UCITS ETF (INXG LN) has been trimmed to 0.10% from 0.25%.

Exchange-traded funds linked to the MSCI EM Index and MSCI ACWI are prepping for a major rebalance ahead of the implementation of MSCI’s semi-annual index review at the end of May, which will see Saudi Arabia and Argentina added and China’s weight increased. The two benchmarks act as underlying reference indices for numerous ETFs, accounting for many tens of billions of dollars of assets under management. Among the largest to be affected are the $57bn iShares Core MSCI Emerging Markets ETF (IEMG US) and the $10bn iShares MSCI ACWI ETF (ACWI US).

HSBC Global Asset Management has launched a new ETF in Europe which provides exposure to the equity market of Saudi Arabia. The HSBC MSCI Saudi Arabia 20/35 Capped UCITS ETF (HMSA LN), listed on the London Stock Exchange, aims to meet increased investor demand for Saudi Arabian securities following MSCI’s decision to include the Kingdom into its emerging markets index from May 2019.

BlackRock has launched a new ETF – the iShares MSCI Saudi Arabia Capped UCITS ETF (IKSA LN) – in Europe. Listed on London Stock Exchange, the fund provides investors with pure-play access to Saudi Arabia’s equity market ahead of its planned upgrade to emerging market status in May.

The Invesco Physical Gold ETC (SGLD LN) has experienced over $500 million in net inflows year-to-date amid increased demand for safe-haven assets driven by political and economic uncertainty. Chris Mellor, Head of EMEA ETF Equity and Commodity Product Management at Invesco, commented, “Gold is often used for portfolio diversification, due to its low correlation with equities, and it can also appeal to investors who want to take a more defensive stance during times of market stress.”