By the ETF Research Team at WisdomTree.

As we enter the latter part of the economic cycle many investors are reticent about dramatically lowering their equity allocations and giving up potential upside but are also wary of market risks both at home and globally. Against this backdrop, investors are considering the benefits of allocating to UK equity income strategies that focus on holding high yielding dividend paying companies.

Assets under management at white label UCITS ETF issuer HANetf have surpassed $50 million. The success of the platform and the speed with which funds have been brought to market offer a proof of concept of the white label model. Hector McNeil, co-Founder and co-CEO HANetf, said, “We are delighted to have reached this important milestone, which demonstrates the unique power of the HANetf platform.”

BlackRock has slashed the fees on two of its largest fixed income ETFs providing exposure to UK government bonds, commonly known as gilts. The ongoing charges figure (OCF) for the iShares Core UK Gilts UCITS ETF (IGLT LN) has been reduced to 0.07% from 0.20%, while the iShares GBP Index-Linked Gilts UCITS ETF (INXG LN) has been trimmed to 0.10% from 0.25%.

BlackRock has launched a range of actively managed multi-asset portfolios, branded MyMap, which are built exclusively using iShares ETFs and passive index funds. The range comprises four portfolios which cater to different risk appetites by targeting defined volatility bands. Pollyanna Harper, Head of iShares UK Intermediary Sales at BlackRock, commented, “With increasing emphasis on individuals to take control of their finances themselves, it’s vital they have access to simple, accessible products which allow them to feel more in control.”

The Investment Association (IA), the trade body representing UK fund managers, has given the green light for ETFs to be added to its fund sectors from Q1 2020. The IA sectors provide a way of dividing the more than 3500 funds on sale in the UK into broad groups to aid comparison of similar funds. Galina Dimitrova, Director of Investment and Capital Markets at the IA, said, “We want to ensure that the IA sectors reflect the full range of products the asset management industry has to offer…ETFs are a growing part of this market and their inclusion in the sectors will enable consumers to compare across a wider variety of products.”

By Eric Dutram, Assistant Vice President, DWS

Though environmental, social, and governance (ESG) investing has entered the mainstream, it remains a neglected topic for many. Some still believe that the strategy is a passing trend – the flavor of the month in investing that might feel good, but at the cost of an unbalanced portfolio and possibly even lower returns as well. Fortunately for ESG investors, these are all myths about responsible investing.

Arguably since Vanguard’s entry into the ETF market, a price war has emerged among ETF providers with new product launches commanding fees of less than 10 basis points increasingly being considered the norm. However, while price competition between passive providers has benefitted the investor, the emergence of zero-fee ETFs would simply be “a gimmick” and investors “need to be wary”, says Hector McNeil, co-CEO of London-based white-label ETF platform HANetf.

Invesco has launched two new ETFs – the Invesco UK Gilt 1-5 Year UCITS ETF (GLT5 LN) and the Invesco UK Gilts UCITS ETF (GLTP LN) – offering the lowest-cost exposure to UK government bonds, or gilts, of any competing product in Europe. Paul Syms, Head of EMEA ETF Fixed Income Product Management at Invesco, said, “For investors who want to take some risk off the table, or simply diversify their portfolios, UK government bonds may offer an attractive solution.”

Lyxor has expanded its socially responsible fund range with the launch of the Lyxor MSCI Europe ESG Leaders UCITS ETF (ESGE FP) on Euronext Paris. The new fund targets stocks within the MSCI Europe Index that have a robust environmental, social, and governance (ESG) profile, as determined by MSCI ESG Research. Adam Laird, Head of ETF Strategy, Northern Europe at Lyxor, commented, “Building on the success of our ESG Trend Leaders suite, this new strategy further enhances Lyxor’s pedigree within the socially responsible investing space. Interest in ESG-focused strategies continues to grow at a robust pace, and it is our goal to provide a comprehensive toolkit to meet investor demand.”

Invesco has launched the Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF on Deutsche Börse Xetra and Borsa Italiana. The fund provides exposure to a portfolio of European equities that are aligned with general ESG (environmental, social, and corporate governance) guidelines as well as Catholic principles relating to stem cells, adult entertainment, conventional weapons, abortion and contraceptives, human rights, and animal welfare.