Cloud computing companies have emerged as big winners from the Covid-19 pandemic with ETFs providing exposure to the sector notching up gains of 33% on average since 16 March, compared to 19% for the S&P 500.

Sensing an opportunity, index providers are developing new indices capturing trends associated with the Covid-19 pandemic. Frankfurt-based Solactive has launched the Solactive Remote Work Index, which is set to underlie a forthcoming ETF from Direxion, while San Diego-based EQM Indexes has introduced four indices with themes such as ‘Work from Home’, ‘Stay at Home’, ‘Covid-19 Stocks’, and ‘Global Pandemic Disruption’.

Solactive has further developed its family of climate transition indices with the introduction of fixed income benchmarks that incorporate low carbon considerations. Timo Pfeiffer, Chief Markets Officer at Solactive, commented, “Given the relevance of these new benchmarks and our flexible architecture, it was evident to us that we wanted to service clients on the equity and fixed income side. The fact that we can help our clients on both ends of the spectrum with a consistent framework highlights Solactive’s long-standing tradition to go the extra mile for our partners.”

S&P Dow Jones Indices has launched the S&P Paris-Aligned & Climate Transition (PACT) Indices, a new family of equity indices designed with significantly reduced carbon footprints in accordance with the Paris climate agreement. Reid Steadman, Global Head of ESG Indices at S&P DJI, commented, “There is a growing urgency in Europe and globally to identify solutions that address the negative consequences companies and institutions face due to climate change. The PACT Indices provide transparency with respect to these consequences and investment strategies that address climate change risks and opportunities.”

Frankfurt-based index provider Solactive has unveiled two new series of equity indices, in partnership with Institutional Shareholder Services, for investors who specifically wish to integrate low carbon and climate change considerations into their portfolios.

Direxion has unveiled three new ETFs on NYSE Arca targeting strategic long-term investment themes. Two of the funds – the Direxion MSCI USA ESG – Leaders vs. Laggards ETF (ESNG US) and the Direxion S&P 500 High Minus Low Quality ETF (QMJ US) – utilize a long/short approach to establish more pronounced exposure to ESG and quality factor risk premia within the US equity market, while the third – the Direxion Flight to Safety Strategy ETF (FLYT US) – invests in a portfolio of safe-haven assets. Dave Mazza, Managing Director and Head of Product at Direxion, commented, “These strategies allow a broader audience to benefit from our expertise in delivering smart, precise exposure to distinct and strategically focused investment opportunities.”

The Hong Kong office of South Korean asset manager Mirae Asset Global Investments has launched three new ETFs on the Hong Kong stock exchange targeting thematic exposures within the Chinese equity universe. The funds are linked to indices from Solactive that track companies providing clean energy, developing electric vehicles, and offering consumer-oriented goods and services. JH Rhee, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong), said, “The launch of these new ETFs builds on our promise to provide unique and innovative ETF products and investment solutions and provides investors with a forward-looking investment approach that embraces the disruptive changes that are rapidly reshaping China.”

Frankfurt-based index provider Solactive has unveiled a new global equity index that seeks to combine a defensive positioning with a focus on companies expected to benefit from long-term socio-economic trends. The Solactive Next Generation Defensives Index is available for licensing and suitable as an underlying reference for investment products including ETFs. Timo Pfeiffer, Chief Markets Officer at Solactive, commented, “Our new Next Generation Defensives Index is specifically targeted at investors seeking substantial long-term growth and, at the same time, want to increase their exposure in defensive sectors.”

BlackRock has cross-listed the iShares $ Development Bank Bonds UCITS ETF on SIX Swiss Exchange. The fund, which launched in December 2019 and is linked to the FTSE World Broad Investment-Grade USD Multilateral Development Bank Bond Capped Index, offers access to a portfolio of high-quality bonds issued by development banks.

FinEx, a London-headquartered ETF issuer with significant operations in Russia, has launched a smart beta equity ETF on Moscow Exchange. The FinEx Global Equity UCITS ETF is linked to the Solactive Global Equity Large Cap Select Index which provides exposure to select developed and emerging markets based on a Black-Litterman asset allocation model. The fund comes with an expense ratio of 0.10%.