Vanguard has introduced new currency-hedged share classes for three fixed income ETFs that deliver core access to Treasury, gilt, and US dollar corporate bond markets.

Wells Fargo is seeking to launch its own ETF business, according to papers filed with the SEC. The US bank has initially registered a single ETF – the Wells Fargo Ultra Short Duration Income ETF – which will provide active exposure to ultra-short duration bonds.

Amundi has expanded its range of ‘Prime’ ETFs with the launch of two new funds providing low-cost exposure to UK mid- and small-cap equities and to short-duration US Treasury bonds. The funds have been priced in line with existing Prime-branded ETFs and come with expense ratios of just 0.05%. Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, commented, “When we launched our industry-leading low-cost range of ETFs last year, we committed to listening to our clients and developing solutions to match their needs. These new funds offer investors the opportunity to complement their portfolios with additional cost-effective core ETF exposures.”

By Matthew J. Bartolini, Head of SPDR Americas Research, State Street Global Advisors.

Apart from the human tragedy of COVID-19, the pandemic has created a new trend line for our society by disrupting every aspect of our daily routines, from how we make purchases and consume energy to how we stay connected. Some of these trends were in place before the pandemic. But now, they are likely to be amplified as we transition to a new world order.

The UK Debt Management Office, the executive agency responsible for carrying out the UK government’s debt management, has sold gilts with negative yields for the first time in its history. The pricing of the issuance is a manifestation of the disruption Covid-19 has wrought upon the global economy and financial markets with accompanying investment portfolio asset allocation shifts being reflected in ETF markets.

A proposal by a cabal of dominant ETF issuers that calls on exchanges to adopt a new naming convention for exchange-traded products has prompted a backlash from smaller, innovative rivals who claim the move is anti-competitive.

After experiencing one of the worst quarterly performances on record, financial markets rebounded strongly in April as investors bet that the Covid-19 pandemic’s impact on the global economy will be transient. ETFs providing exposure to developed and emerging market equities, investment-grade bonds, and high-yield debt all notched up sizable gains; however, some analysts are wondering if the rally has run too far.

WisdomTree has announced changes to its suite of European-listed equity income ETFs, incorporating a multifactor process into three more funds to tilt portfolios towards value, quality, and momentum risk premia. The updated methodology will take effect next week and will apply to funds providing exposure to European, UK, and emerging market equities.

BlackRock has broadened its sustainable fixed income offering in Europe with the launch of three ultrashort duration bond ETFs that screen issuers according to environmental, social, and governance (ESG) criteria. The funds, which are ESG equivalents of existing iShares UCITS ETFs, are linked to Markit iBoxx indices and provide exposure to short-maturity corporate bonds issued in US dollars, euros, or pound sterling.

Invesco has expanded its range of fixed income ETFs in Europe with the launch of a sterling corporate bond fund. The Invesco GBP Corporate Bond UCITS ETF (IGCB LN) has listed on the London Stock Exchange and comes with an expense ratio of 0.10%. The fund is linked to the Bloomberg Barclays Sterling Liquid Corporate Bond Index.