Goldman Sachs Asset Management has made their direct entry into the fast-growing exchange-traded fund space with the launch of the ActiveBeta US Large Cap Equity ETF (GSLC) on the NYSE Arca. The fund is the first in a series of so-called “ActiveBeta” ETFs that will track GSAM’s smart beta indices offering systematic multi-factor exposure to well-established drivers of long-term outperformance. “We are excited to enter the ETF market,” said Tim O’Neill, Global Co-Head of the Investment Management Division, which includes GSAM. “Our approach to ETFs continues our legacy of investment innovation and at a cost that makes them accessible to all investors.”

Reaves Asset Management, a New Jersey-based investment company specialising in the coverage of utility and infrastructure companies, has launched its first exchange-traded fund: the actively managed Reaves Utilities ETF (UTES). Listed on Nasdaq, the ETF provides transparent exposure to the lower volatility profile of the US utility sector via active stock selection. “Utilities provide an element of stability in investment portfolios due to their defensive nature, steady earnings, dividend growth, and quarterly dividend payments”, said John Bartlett, co-portfolio manager at Reaves Asset Management.

ProShares, a US-based provider of specialist exchange-traded funds, has launched a suite of four S&P 500 Ex-Sector ETFs. The ETFs each provide exposure to the S&P 500 minus a particular sector – either energy, financials, technology or health care. “S&P 500 ETFs force you to invest in a sector you might already have a desired level of exposure to or you may want to avoid,” said Michael L. Sapir, co-founder and CEO of ProShares. “Now, for the first time, you can invest in an S&P 500 ETF and leave behind the sector [energy, financials, technology or health care] you don’t want.”

There has been a significant increase in interest in environmental, social and governance (ESG) exposures this year, according to index provider MSCI, with exchange-traded funds linked to such indices seeing a surge in demand. Baer Pettit, Managing Director and Global Head of Products at MSCI, said: “We’re actively addressing the challenges of integrating ESG factors into benchmarks, whether to meet the needs of investors who believe ESG data can enhance investment decisions or those who simply want to align their portfolios with their values.”

China played no small role in August’s equity market sell off, but, according to a new report from European ETF provider Source, there are a number of positives to the country that may be being overlooked. “China is now one of the largest economies in the world, and its spending power helped drag the western world out of recession following the financial crisis. This appears to have come at a price, however, and the fallout is being felt not only in China but throughout capital markets worldwide. That said, as we looked more deeply into the data, we discovered that it was not all doom and gloom,” said Paul Jackson, Head of Source’s Multi-Asset Research.

MSCI, a leading provider of indices, has added to their Shariah-compliant index range with the launch of the Islamic M-Series Indices. “We have expanded the existing MSCI Islamic Index Family with the launch of the M-Series that addresses client demand for financial screening criteria based on market capitalisation,” said Rob Ansari, Executive Director and Head of Client Coverage at MSCI in the Middle East. “We are committed to developing relevant tools for Middle East investors.”

As ETF assets tracking environmental, social and governance (ESG) exposures continue to grow, S&P Dow Jones Indices (S&P DJI), one of the world’s leading index providers, has announced the launch of three new climate change indices. “Many investors are trying to facilitate the transition to a low-carbon economy by financing projects in the renewable energy sector, avoiding high-carbon producing companies or minimising their exposure to fossil fuel companies. The three new S&P DJI indices are designed to provide alternative performance narratives to standard benchmarks, being comprised of those companies meeting the strict fossil fuel and carbon efficient standards set within each index series,” said Julia Kochetygova, Head of Sustainability Indices at S&P Dow Jones Indices.

Direxion Investments, a US-based provider of short and leveraged exchange-traded funds, has launched two pairs of ETFs which seek to deliver 2x long and 2x inverse exposure to the cyber security and pharmaceutical industries. “Traders and investors continue to express keen interest in the cyber security and pharmaceutical sectors,” said Sylvia Jablonski, Managing Director at Direxion. “Our new leveraged ETFs enable traders to benefit from exposure to these industries, regardless of market conditions and sector performance, in a flexible way.”

Short and leveraged exchange-traded products (S&L ETPs) saw significant inflows during August as market volatility drove demand for short-term trading and risk-hedging tools sharply higher. S&L ETPs saw $7.5bn of net inflows during the month, equating to 36% of the total $20.8bn of ETF/ETP assets gathered globally. “These products are becoming increasingly popular across Europe, particularly amongst the short-term investor community. This increase is in line with the sharp volatility increase experienced at the end of August, where the volume traded in these instruments surged to reach record highs,” said Alexandre Houpert, Head of Cross Asset Retail Distribution, Europe, at Societe Generale.

State Street Global Advisors (SSGA) has announced the launch of two currency-hedged ETFs providing exposure to international income-producing assets: the SPDR MSCI International Real Estate Currency Hedged ETF (HREX) and the SPDR S&P International Dividend Currency Hedged ETF (HDWX). “Recent flow trends have highlighted continued investor interest in currency-hedged ETFs to help manage currency volatility,” said James Ross, executive vice president and global head of SPDR ETFs at SSGA. “The search for yield continues to be a pressing need for investors and the addition of HREX and HDWX provides our clients with the ability to better manage currency risk when seeking attractive income-producing opportunities outside of the US.”