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.

Smart beta specialist Ossiam has launched a new fund in Europe: the Ossiam US ESG Low Carbon Equity Factors UCITS ETF. The fund, which has listed on London Stock Exchange and Xetra, provides exposure to a low carbon portfolio of US equities with security selection guided by a proprietary multifactor model. Bruno Poulin, CEO of Ossiam, commented, “The launch of our latest ETF exploits the strength of evidence for equity factors as a means of achieving alpha over the long term.”

Ossiam has launched the Ossiam World ESG Machine Learning UCITS ETF, a new smart beta ETF which uses machine learning techniques to provide ESG-focused exposure to global developed market stocks. “It has always been Ossiam’s mission to drive the investment industry forward,” said Bruno Poulin, CEO of Ossiam. “This strategy and ETF mark a key turning point in combining ESG principles with advanced investment techniques as we reach a tipping point for ESG, driven by policy makers, regulators and investors.”

Seven issuers were active on London Stock Exchange in June, listing seventeen new ETFs or ETF share classes, bringing the total number of new listings (including ETPs) to 188 year-to-date. Lida Eslami, Head of London ETP Business Development, London Stock Exchange, commented: “We continue to see growing demand for ETPs both in terms of issuance and volumes traded in the first half of the year.”

Solactive has unveiled the Solactive Climate and Energy Transition Index, tracking companies showing commitment to energy transition in their sectors while exhibiting low volatility and high dividend yield characteristics.

Ossiam has launched the Ossiam ESG Low Carbon Shiller Barclays CAPE US Sector UCITS ETF (5HEE GY) on Xetra. The actively managed fund aims to deliver a risk/return profile similar to the existing Shiller Barclays CAPE US Sector Value Index, but with a significantly reduced carbon footprint and improved ESG profile.

Ossiam has cross-listed the Ossiam Solactive Moody’s Analytics IG EUR Select Credit ETF (OSXF GY) on Deutsche Börse. This new smart beta fixed income ETF, which debuted on Euronext Paris on 15 February 2018, invests in a portfolio of euro-denominated investment grade corporate bonds, seeking to maximise total return while maintaining a low credit risk profile.

Ossiam has launched the Ossiam Solactive Moody’s Analytics IG EUR Select Credit ETF (MOOC FP) on Euronext Paris. This new smart beta fixed income ETF invests in a portfolio of euro-denominated investment grade corporate bonds, seeking to maximise total return while maintaining a low credit risk profile. Bruno Poulin, CEO of Ossiam, said, “The Ossiam investment-grade credit strategy is aimed at long-term investors prioritising stable returns from high quality bonds issued by companies with strong business models in debt capital markets.”

After registering dynamic growth in the first half of the year, demand for Europe-listed ETFs slowed considerably in August, according to Morningstar’s monthly ETF asset flows analysis.

Ossiam has reported that the Ossiam Shiller Barclays CAPE US Sector Value UCITS ETF (LON: UCAP) passed the $1 billion AUM milestone in June. The ETF uses the cyclically adjusted price-to-earnings (CAPE) ratio, developed jointly by Barclays and Nobel Prize-winning economist Professor Robert Shiller, as a valuation driver in a sector rotational strategy. Professor Shiller said: “I feel grateful to the people at Ossiam and at Barclays for the careful work they have done to make the CAPE products a reality for so many people.”