ERI Scientific Beta, an affiliate of the EDHEC-Risk Institute, and Fundlogic, the ETF platform of investment bank Morgan Stanley, have partnered to launch five smart beta ETFs on the London Stock Exchange. The ETFs provide factor-based equity exposure to the US, Japan, developed Asia-Pacific ex-Japan, developed Europe, and emerging markets.

James Investment Research has launched the James Biblically Responsible Investment ETF (JBRI US) on Cboe ETF Marketplace, providing multi-factor exposure to US equities that are aligned with biblical values. The launch marks the firm’s debut in the ETF provider space.

Arrow Funds has launched two ETFs offering distinct approaches to international equities investing. The Arrow DWA Country Rotation ETF (DWCR US) provides exposure to some of the best performing developed and emerging market countries, while the Arrow Dogs of the World ETF (DOGS US) offers a contrarian strategy by targeting the worst performers.

First Asset Investment Management has announced that the First Asset Can-Energy Covered Call ETF (OXF CN) is to close. The fund, currently listed on Toronto Stock Exchange, will be de-listed on 15 February 2018.

Invesco has lowered the fees charged on two NYSE Arca-listed ETFs, the PowerShares S&P 500 Momentum Portfolio (SPMO US) and the PowerShares S&P 500 Enhanced Value Portfolio (SPVU US), from 0.25% to 0.13%, effective 1 January 2018. Dan Draper, global head of ETFs at Invesco, commented, “We are constantly evaluating our product offerings to ensure that we are offering cost-efficient investment solutions to meet the needs of our investors.”

Angelos Gousios, director, European retail research, at Cerulli, notes that MiFID II’s drive for transparency on costs will shift the balance further in favour of passive investing, benefiting products such as ETFs.

ETFs listed in Europe gathered €9.6 billion in net new assets during November with equity funds leading the charge after gathering €6.8bn net inflows during the month, according to analysis by European ETF provider Amundi.

BNP Paribas Asset Management has cross-listed four ETFs on SIX Swiss Exchange. Three provide smart beta exposure to European and US-listed equities, and the other to a diversified portfolio of real estate companies and real estate investment trusts (REITs) listed in eurozone countries.

Wisdomtree has announced that the WisdomTree US LargeCap Value Fund (EZY US) has been restructured into the WisdomTree US Quality Shareholder Yield Fund (QSY US). QSY is an actively managed factor-based ETF which focuses on US-listed companies offering attractive shareholder yield (dividends or buybacks) with a focus on sustainability of income payments.

By Dr Peter Hopkins, principal, Style Research.

There are lots of ways to entice people into parting with their money – and attractive packaging and descriptions are near the top of the list. ETFs are no exception to the aggressive marketing taking place; neither are the factors that are often used to calibrate the performance of these investments. But can you really trust the products? And what should you look out for?