JP Morgan Asset Management has launched the lowest cost ETF in the US with the expansion of its ‘BetaBuilders’ range – low-cost, passively managed ETFs marketed as portfolio building blocks.

Environmental, social, and government (ESG) funds proved resilient during 2018, according to research by Morningstar, despite a difficult market environment marked by elevated volatility and broad declines in stock and bond prices.

Morningstar has unveiled the Morningstar Low Carbon Risk Indexes, a new group of equity indexes that emphasize companies aligned with the transition to a low-carbon economy. “Climate change is a significant challenge that impacts investors,” said Sanjay Arya, Head of Indexes at Morningstar. “This new family of indexes will empower investors to evaluate and invest in companies that are adapting to the low carbon economy and managing their businesses strategically for the long term.”

By Brandon Rakszawski, Senior ETF Product Manager, VanEck.

The Morningstar Wide Moat Focus Index is reviewed quarterly to ensure the index is allocated to companies that Morningstar believes possess a sustainable competitive advantage and, just as importantly, are among the most attractively priced of those companies. Following the market sell-off in the fourth quarter, the US Moat Index’s December review resulted in its most dramatic sector allocation shifts of the year.

VanEck has cross-listed nine Think ETFs onto Deutsche Börse’s Xetra platform. The ETFs, which maintain primary listings on Euronext Amsterdam, offer a mix of equity, fixed income and real estate exposure and follow VanEck’s acquisition of Netherlands-based ThinkCapital at the beginning of the year.

The growth of assets under management in thematic ETFs listed in Europe has been driven by a handful of products, according to a report from investment research house Morningstar.

Phillip Capital has launched the Phillip SING Income ETF (SINGINC SP) on Singapore Exchange, providing investors with access to a diversified basket of quality high-income Singapore stocks.

VanEck has launched the VanEck Vectors Morningstar Global Wide Moat ETF (GOAT US), the third instalment in its range of US-listed ‘Wide Moat’ ETFs. The NYSE Arca-listed fund, which tracks the Morningstar Global Wide Moat Focus Index, provides exposure to global companies with sustainable competitive advantages (so-called wide economic moats) that are attractively priced. Stocks are drawn from both developed and emerging markets.

VanEck has launched the VanEck Vectors Morningstar Durable Dividend ETF (DURA US) on NYSE Arca, providing exposure to high dividend US companies with strong financial health and attractive valuations. “After years of very low interest rates and ongoing demand for dividend paying stocks, an important consideration for investors is making sure not to overpay for yield,” said Ed Lopez, Head of ETF Product with VanEck.

Passive equity managers continue to lead the price war by cutting fund fees at a faster rate than their actively managed peers, according to a report from Morningstar that looked at the effect on fund fees for UK investors since the implementation of the Retail Distribution Review (RDR) in 2013. Jose Garcia-Zarate, Associate Director at Morningstar, commented, “There is no doubt that the RDR has influenced the marketplace positively. There is greater transparency of fees for the investor and this has brought to the fore the issue of the assessment of value at a fund level.”