Smart beta equity exchange-traded funds gathered $3.0bn in new assets globally during October, bringing the year-to-date total to $53.7bn, according to ETF industry consultants ETFGI. Total assets under management for smart beta ETFs now stand at $399bn. “Our findings show that market cap equity ETFs are still the most popular based on AUM where they accounting for $1.79tn. But when compared on their five-year compound annual growth rates, smart beta equity products are growing significantly faster at 39.3% while market cap has been growing at 18.6%,” said Deborah Fuhr, Managing Partner at ETFGI.

Etho Capital, a US-based sustainable investment manager, has launched the ETHO ETF (ETHO), a broad based, diversified, socially responsible and fossil fuel-free exchange-traded fund with no exposure to the energy sector. Conor Platt, Co-Founder, Chief Executive Officer and Chief Investment Officer of Etho Capital, commented: “Our research shows that investing in climate-efficient companies can yield higher returns. Investors want options that prioritise both profits and the planet, and ETHO is helping fill these needs. The ETHO ETF allows investors to put their money toward supporting the most sustainable, forward-looking companies in the world whose management teams are planning for our climate in a changing, competitive landscape.”

Amundi, a leading European provider of exchange-traded funds, has announced the cross-listing of the Amundi MSCI Europe Buyback UCITS ETF on Xetra and the Börse Frankfurt. This smart beta fund aims to provide exposure to European companies that are undertaking share buyback programmes. Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, said: “This innovative ETF adds to our smart beta range and reinforces the positioning of Amundi as a leading innovative player in the European ETF market.”

Exchange-traded fund usage is more common among young investors than among older investors. That’s according to a survey undertaken by Cogent Reports, a division of research group Market Strategies International. The survey explores brand preference and product usage among affluent US investors, defined as those with investable assets exceeding $100,000.

First Asset, the Toronto-based investment manager, has concluded the conversion of its closed-end fund, the Can-60 Income Corp, to an exchange-traded fund. All outstanding shares in the original format were consolidated on a 1:3 basis as new shares in the First Asset Core Canadian Equity Income ETF (Toronto Stock Exchange: CSY). The ETF combines a range of First Asset ETFs to provide exposure to momentum, value, size and volatility factors. First Asset’s suite of Core ETFs provide one-ticket portfolio solutions to advisors and their clients through optimised low cost portfolios.

First Trust Advisors, a leading provider of exchange-traded funds, has launched an actively managed ETF which aims to provide investors with targeted exposure to US and international real estate securities. The First Trust Heitman Global Prime Real Estate ETF will invest in the shares of publicly-traded companies that own top tier, prime properties in the world’s dominant cities. “This ETF provides a unique tool for investors to gain exposure to an actively managed portfolio of some of the most attractive prime real estate assets around the world, in a way that’s both diversified and liquid,” said Ryan Issakainen, CFA, Senior Vice President, Exchange-Traded Fund Strategist at First Trust.

Think ETFs, a Dutch provider of exchange-traded funds, has launched the Think Morningstar North America Equity UCITS ETF (TNAE) on the NYSE Euronext Amsterdam. The fund tracks Morningstar’s proprietary North America 100 Equal Weight Index, offering equal-weighted exposure to the 100 largest and most liquid stocks trading on North American exchanges. Recent research from Cass Business School showed that strategies which deviate from traditional market cap-weighted approaches, such as equal-weighting, have historically produced superior risk-adjusted returns.

Smart beta exchange-traded funds have attracted considerable attention, and assets, in recent years, sparking a great deal of debate. Much of this debate has been centred on the term itself, “smart beta”. Some argue that it implies market capitalisation-weighted ETFs are therefore “dumb beta” and that this inference can be misleading for investors. While the term smart beta may be open to misinterpretation, it has undeniably become part of the financial lexicon and, semantics aside, is now the most widely adopted term to describe rules-based non market cap-weighted and strategy-based investing. So let’s all move on from discussions over the term itself and, instead, focus on what’s important.

iShares, the exchange-traded fund division of asset manager BlackRock, has launched the iShares International Aggregate Bond ETF (IAGG) on the BATS ETF Marketplace. The new offering tracks the performance of the Barclays Global Aggregate ex USD 10% Issuer Capped (Hedged) Index. The fund provides low cost, efficient access to a broadly diversified range of international investment grade bonds while reducing the effects of currency volatility on returns by entering into hedging strategies.

ZyFin, a Singapore-headquartered asset manager with advisory operations based in India, has announced the imminent listing of the world’s first Indian fixed income exchange-traded fund, the LAM Sun Global ZyFin India Sovereign Enterprise Bond UCITS ETF (CURY LN), on the London Stock Exchange. Sanjay Sachdev, Executive Chairman at ZyFin, commented: “This is the first time global investors will have access to AAA rated government-owned Indian companies through an ETF, and with the Indian government keen to stimulate outside investment, this is a very exciting time to be investing in the country.”