Maryland-based asset manager Calvert Investments has launched an index tracking globally-listed firms with low carbon emissions, those that are actively reducing their greenhouse gas emissions, or those expanding their use of renewable energy sources. The Calvert Energy Research Index, the seventh addition to the firm’s suite of responsible indices and its second research index, has been designed to form the basis for future passive investment products such as exchange-traded funds.

Europe’s third largest provider of exchange-traded funds Lyxor has unveiled a new ETF offering US dollar-hedged exposure to the FTSE 100 Index. The Lyxor UCITS ETF FTSE 100 – Monthly Hedged C-USD (LSE: 100H) is the first ETF in Europe to provide investors with exposure to the FTSE 100 and protect against adverse movements in the British pound against the US dollar. The fund may appeal to US dollar investors who are concerned of future volatility in Sterling following the UK’s vote to leave the European Union. Alternatively it may appeal to British pound investors willing to accept currency risk in exchange for the return on the index as well as the underlying forward currency contracts.

Canadian exchange-traded fund provider Horizons ETFs has launched an actively managed ETF designed to keep risk levels balanced across all invested asset classes, regardless of market conditions. The Horizons Global Risk Parity ETF (Toronto: HRA) is the first locally listed ETF to offer Canadian investors access to a risk-parity strategy. Risk Parity theory states that optimal diversification is achieved through assigning portfolio allocations which target a balanced contribution of risk from each asset class. Steve Hawkins, Co-CEO, Horizons ETFs, said: “HRA strives to keep risk levels across asset classes similar to one another, which can result in lower overall volatility and potentially higher risk-adjusted returns.”

iShares has launched two sustainable equity ETFs. The ETFs track MSCI indices focused on ESG ratings. The launch is the latest from the provider in offering investors ethical ETFs and adds to its range of ESG products. The iShares Sustainable MSCI Emerging Markets SRI UCITS ETF tracks the MSCI Emerging Markets SRI index, which includes large and mid-cap equities across 23 emerging market countries. The iShares Sustainable MSCI USA SRI UCITS ETF tracks the MSCI USA SRI Index, which includes large and mid-cap companies in the USA.

Canada is the best-performing stock market in the world so far this year, according to the MSCI Canada Index, which has risen 15.5% year-to-date, and exchange-traded funds tracking the country’s equities have benefited, producing strong returns to date in 2016. The stock market in Toronto has managed to push aside the negative effects of the UK’s decision to leave the European Union and produce double-digit returns between January and July. The MSCI Canada index’s 15.5% rise year to date in US dollar terms compares to a paltry 1.6% from the MSCI All Countries World index

Sterling exchange traded funds continue to be volatile in the run-up to the Brexit referendum following further warnings from the Bank of England (BoE) that the outcome is the largest immediate risk facing UK financial markets. In the run up to last Thursday’s BoE monetary policy meeting before the referendum today, the pound dropped toward a two-month low versus the dollar and crashed to a three-year low versus the Japanese yen. The pound touched $1.4091 on 14th June, its lowest level since 14th April, but was up Wednesday 22nd to close at $1.4683.

Exchange-traded fund provider WisdomTree Europe has launched two ETFs targeting dividend-paying companies that have strong fundamental metrics with future dividend growth potential. Viktor Nossek, Director of Research at WisdomTree Europe, commented in a statement: “Investors are keen to explore more developed methodologies to gain access to dividend-related strategies and at WisdomTree, we believe in the power of dividends to deliver the potential for enhanced risk-adjusted returns.”

AXA Group announced last month that it was planning to sell around €1.8bn in tobacco investments. The announcement comes as assets in ethical investing via ETFs have boomed, with global AUM rising nearly 45% since 2014, according to data from BlackRock. However, from an investment stance, tobacco stocks have been a pretty strong performer in the last few years. British American Tobacco (one of the largest tobacco firms with market cap of £78bn) has seen its share price rise 52% to 4,167 (last week) over the last five years. In the last year it has risen 19%.

The yield on 10-year UK government bonds (gilts) reached an all-time low of 1.22% on Thursday, driven by a lower probability of a June interest-rate increase by the US Federal Reserve, a shift in sentiment towards risk-off assets on the back of stronger indications that the UK might vote for Brexit, and continued asset-purchase programmes. Owing to the inverse relationship between interest rates and bond prices, gilt exchange-traded funds have provided attractive returns in 2016 as 10-year rates began the year at roughly 2%. The Lyxor FTSE Actuaries UK GILTS (DR) UCITS ETF (GILS), the cheapest gilt ETF on the market, has returned 7.6% year-to-date.

Index provider FTSE Russell has announced changes to the FTSE 100 Index, the flagship reference for large cap blue-chip stocks listed in the United Kingdom. Following a rules-based process, this quarter’s review will see only one substitution as satellite communications company Inmarsat will be relegated from the index in favour of multinational pharmaceuticals firm Hikma Pharmaceuticals. The move is set to prompt significant buying and selling activity amongst a wide range of ETFs that currently track the prestigious index.