Tabula Investment Management has launched a new ETF in Europe – the Tabula JP Morgan Global Credit Volatility Premium Index UCITS ETF (TVOL LN). Linked to a newly created JP Morgan index, the fund provides a passive vehicle for capturing the difference between realized and implied volatility in credit default swap (CDS) index options markets. “Investors are very keen to find new sources of return that are structural and have limited correlation to other market index investments,” said Michael John Lytle, CEO of Tabula Investment Management. “We are very glad to be able to work with JP Morgan on harnessing this risk premium and delivering it to our clients.”

Twenty four new ETF/ETPs or additional share classes were listed on the London Stock Exchange in February 2019. ETF providers introducing new products on the exchange during the month included UBS, Invesco, Vanguard, First Trust, BlackRock, Lyxor, WisdomTree, and Tabula.

Fixed income ETFs are expected to take a bigger share of overall ETF inflows, according to research from new European ETF provider Tabula Investment Management. The firm believes such growth could result in a large number of me-too fixed income ETFs, all offering similar sorts of exposure. “The palpable opportunity in this market lies in developing new products that deliver precise exposure and address the specific needs of fixed income investors,” said MJ Lytle, chief executive at Tabula.

Tabula Investment Management is preparing to make its debut with the launch of a range of fixed income ETFs in Europe. The firm’s first ETFs will provide exposure to credit default swap (CDS) indices from IHS Markit. Michael John (‘MJ’) Lytle, CEO of Tabula, commented, “Passive strategies account for only 5% of fixed income fund assets, compared to 30% for equities. We expect this gap to close, but how quickly will depend on how compelling the available funds are.”