Lyxor has rolled out three new ETFs that enable investors to take a view on expected changes to the shape of key benchmark yield curves. The new ETFs stand to gain from a flattening of the US Treasury yield curve, a steepening of the German Bund yield curve, and a flattening of the German Bund yield curve. They join an existing ETF that profits from a steepening of the US Treasury yield curve. Philippe Baché, Head of Fixed Income ETFs at Lyxor, commented, “Views on the direction of interest rates differ among investors, and our innovative ETFs allow them to express their beliefs on the future shape of benchmark yield curves.”

The strong net inflows into ETFs and other index-tracking products is leading to a “bubble” in passive investing, according to famed investor Michael Burry.

Two US-listed ETFs providing exposure to Treasury Inflation-Protected Securities (TIPS) are enjoying significant demand as investors position their portfolios to withstand the effects of future interest rate cuts.

Paris-based ETF issuer Ossiam has launched a new fund in Europe – the Ossiam US Steepener UCITS ETF – which allows investors to profit from a steepening of the US Treasury yield curve. Listed on Xetra, the fund tracks the Solactive US Treasury Yield Curve Steepener 2-5 vs 10-30 Index through synthetic replication. Bruno Poulin, CEO of Ossiam, said, “We have launched the Ossiam US Steepener ETF at a time when the US Treasury yield curve is as flat as it has been since 2007 and many market participants expect a steepening.”

ETFs providing exposure to Hong Kong equities have been taking a hammering as civil unrest continues to escalate within the special administrative region. The NYSE Arca-listed iShares MSCI Hong Kong ETF (EWH US), the largest ETF to track the market, has slumped 11.1% in USD terms between 24 July and 12 August 2019 and investors have been exiting in droves, with AUM declining 30% over the period and trading activity hitting a five-year high.

Seventeen new ETFs or additional ETF share classes were listed on the London Stock Exchange (LSE) in July 2019. ETF providers active with listings during the month included Invesco, Legal & General Investment Management, Lyxor, JP Morgan Asset Management, Vanguard, and BlackRock.

Lyxor has launched a new ETF – the first of its kind in Europe – which allows investors to profit from a steepening of the US Treasury yield curve. The Lyxor US Curve Steepening 2-10 UCITS ETF (STPU LN) has listed on the London Stock Exchange and comes with an expense ratio of 0.40%. Adam Laird, Head of ETF Strategy, Northern Europe at Lyxor, commented, “We’ve heard from a number of clients that the US curve is very flat, but that this can’t last forever. Our fund is a way for investors to play this.”

Lyxor has cross-listed the Lyxor MSCI EMU Small Cap UCITS ETF (MMS LN) and Lyxor Euro Stoxx Banks UCITS ETF (BNKE LN) on London Stock Exchange. The funds, which house $230m and $440m in assets respectively, provide exposure to small-cap equities from the EMU (Economic and Monetary Union) and banking stocks from eurozone countries.

JP Morgan Asset Management has launched its first multi-factor equity ETFs in Europe. The JPMorgan Global Equity Multi-Factor UCITS ETF (JPGL) and JPMorgan US Equity Multi-Factor UCITS ETF (JPUS) target returns attributable to value, quality, and momentum factors. Each fund comes with an expense ratio of 0.19% and has been listed on London Stock Exchange, Deutsche Börse Xetra and Borsa Italiana. Bryon Lake, Head of International ETFs at JP Morgan Asset Management, said, “We’ve received a lot of client interest in these types of strategies. Multi-factor ETFs are a fast-growing area of the fund universe and we’re delighted to be able to offer clients a new and attractively priced solution to help support their overall asset allocation needs.”

Lyxor has launched Europe’s first ETF to offer emerging market ex China equity performance. The Lyxor MSCI Emerging Markets Ex China UCITS ETF provides exposure to more than 700 large- and mid-cap companies from 25 developing economies, excluding China, and is aimed at investors who wish to gain broad EM exposure while managing their allocation to China on a stand-alone basis. Chanchal Samadder, Head of Equities at Lyxor ETF, commented, “This new ETF allows investors to gain broad exposure to some of the world’s most dynamic developing countries and, at the same time, make their own independent allocations to China.”