Sydney-based ETF issuer BetaShares is set to unveil the BetaShares FTSE 100 ETF (F100 AU) on the Australian Securities Exchange. The fund, which according to Bloomberg is scheduled to begin trading on 17 July 2019, is the country’s first ETF to provide exposure to the UK’s flagship equity market index, the FTSE 100.

Krane Funds Advisors, best known for its KraneShares-branded suite of China-focused ETFs, has broadened its capabilities beyond the Asian giant with the launch of two smart beta ETFs on NYSE Arca providing exposure to domestic US stocks with sustainable dividends.

Smart beta adoption amongst institutional asset owners has reached a record high of 58% in 2019, ten percentage points higher than 2018, according to the sixth annual ESG & Smart Beta survey conducted by FTSE Russell. Rolf Agather, Managing Director, Research & innovation, FTSE Russell, said, “Risk reduction, return enhancement and improved diversification continue to drive smart beta adoption among institutional investors globally.”

FTSE Russell is celebrating the tenth anniversary of the FTSE MIB Index, the preeminent stock market index for the Borsa Italiana. The index, which consists of the 40 largest and most liquid stocks listed in Milan, is the most widely followed barometer of the health of the Italian equity market. It also serves as the underlying reference for eight ETFs, including the €400m Lyxor FTSE MIB UCITS ETF.

Franklin Templeton has launched its first purely passive ETFs in Europe, a suite of four single-country funds providing exposure to the equity markets of Brazil, China, South Korea, and India. The funds are linked to capped, market capitalisation-weighted indices from FTSE Russell and come with total expense ratios of between 0.09% and 0.19%. Caroline Baron, Head of ETF Sales EMEA, Franklin Templeton, said, “We are delighted to introduce these four new emerging markets country passive ETFs at the lowest fees, to European investors.”

London Stock Exchange Group (LSEG) has acquired Paris-based Beyond Ratings, a provider of environmental, social and governance (ESG) data for fixed income investors. The acquisition is part of LSEG’s strategy to enhance its Information Services business, a major earnings generator for the group, which includes top tier index provider FTSE Russell.

FTSE Russell has launched the FTSE Municipal Tax-Exempt Investment-Grade Bond Index, providing exposure to municipal bonds that are rated investment grade. Scott Harman, Managing Director, Fixed Income Product Management at FTSE Russell, commented, “FTSE Russell has been steadily growing its multi-asset capabilities offering comprehensive coverage across all major public markets and the new index, which tracks one of the largest bond markets in the world, can be used as the basis for a wide range of custom solutions.”

New York-based Global X has expanded its suite of covered call ETFs with a new fund – the Global X Russell 2000 Covered Call ETF (RYLD US) – which targets the small-cap segment of the US equity market. Rohan Reddy, Research Analyst at Global X, commented, “We are thrilled to be able to offer investors the opportunity to utilize a covered call strategy on the premier small-cap benchmark index, the Russell 2000. We believe RYLD is a great complement to our other covered call offerings, as investors continue to look for alternative sources of income.”

By Stéphane Degroote, Head of ETFs & Derivatives Business, EMEA at FTSE Russell.

ETF usage among institutional investors in Europe has been on the rise, and fixed income ETFs have been a key driver behind this growth. European institutions surveyed in a recent Greenwich Associates study indicated that fixed income ETFs as a percentage of their portfolios more than doubled from 2017 to 2018. As fixed income ETF inflows in Europe continue to pick up steam, we’ve identified four primary reasons behind this trend.

FTSE Russell has published the results of its first Fixed Income Country Classification Review, which kicked on in January. The review process aims to bring greater transparency to managing country inclusion to FTSE Russell’s global fixed income index offering.