Tabula Investment Management has launched the Tabula European iTraxx Crossover Credit UCITS ETF (TECC LN) on London Stock Exchange, providing exposure to European high-yield credit through an index tracking the corporate credit default swap (CDS) market. The fund aims to provide a competitive yield without the direct interest rate risk inherent in traditional corporate bond indices. Michael John Lytle, CEO of Tabula Investment Management, commented, “We are making [CDS indices] available in a transparent UCITS ETF which extends the tool kit for fixed income investors to efficiently maneuver in difficult market environments.”

The European ETF industry is set to enjoy robust inflows from both institutional and retail investors in 2019, according to André Schnurrenberger, Managing Director, Europe at Cerulli Associates. In the latest edition of “The Cerulli Edge — European Monthly Product Trends”, Schnurrenberger notes that “European ETFs may be about to enter a new phase in their evolution, demonstrating that they can be the vehicle of choice even when investors turn defensive.”

Leading ETF issuers in Europe have joined forces with financial data giant Bloomberg to provide investors with a ‘consolidated tape’ of aggregate ETF trading data. The Bloomberg ETF aggregate volume feed, which incorporates OTC trades, aims to increase transparency around European ETF trading. Jim Goldie, EMEA Head of ETF Capital Markets at Invesco, said, “The industry has come together for the benefit of all stakeholders to showcase the liquidity, transparency and strengths of the ETF market, and we expect this service to further catalyse the growth of the sector.”

Invesco has reduced the annual fee on its $4.5 billion physical gold ETC from 0.29% to 0.24%. Following the price cut, the Invesco Physical Gold ETC now offers the lowest overall cost of any gold ETP available in Europe. “One of the big attractions of gold as an investment is that it tends to behave differently than other asset classes, especially equities. For investors considering adding exposure, we’ve just made it even more attractive from a cost perspective,” said Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco.

Mandated trade reporting under MiFID II has revealed record trading volumes and liquidity in the European ETF market, providing comfort to new and existing investors that European listed ETFs are an efficient and liquid way to invest. Stephen Cohen, Head of iShares EMEA at BlackRock, said, “trading volumes help prove that the ETF market is deep enough to transact effectively both on small and large scales.”

The Investment Association (IA), the trade body that represents the UK’s fund management industry, has opened a consultation on the proposed inclusion of ETFs in its fund classification sectors. The sectors are designed to help investors and advisers compare and contrast similar funds. Under the IA’s proposal, ETFs would be eligible to apply to be included within the existing sectors. Galina Dimitrova, Director of Investment and Capital Markets at the IA, said, “The primary purpose of the IA sectors is to serve the needs of consumers and their advisers and the addition of ETFs must be done in their best interests.”

Zurich-based index provider Stoxx has launched the Stoxx Europe 600 ESG-X Index, a sustainability-focused version of the Stoxx Europe 600, one of its core European equity benchmarks. Inderpal Gujral, Head of Product at Stoxx, said, “The ESG-X version of Stoxx Europe 600 uses free-float market cap weighting similar to Europe’s most traded benchmark index. It is easy to implement as a benchmark for asset owners and well-suited to serve as an underlying for ETFs, derivatives or structured products.”

Twenty nine new ETFs or ETF share classes were listed on the London Stock Exchange in October, bringing the total number of new listings (including ETPs) to 299 in the year to date. Issuers active during the month included BlackRock, Franklin Templeton, HANetf, Invesco, JP Morgan, Lyxor, and Tabula.

Legal & General Investment Management (LGIM) has unveiled a range of core low-cost equity ETFs on the London Stock Exchange. The ETFs include Global, US, Europe, UK, Japan and Asia Pacific exposures and are linked to indices designed to mitigate the risks of crowded indices while also incorporating a responsible investment screen. Simon Hynes, Head of Retail Distribution, EMEA, at LGIM, said: “We believe our core range will be of interest to our clients due to the low cost and additional value they deliver compared to what’s currently available in the market.”

London-based investment research firm Elston Consulting has launched a new multi-asset index, built using ETFs, that utilizes a dynamic risk-parity weighting methodology. Henry Cobbe, Head of Research at Elston Consulting, commented, “Indices are evolving from simple building blocks into dynamic strategies to provide lower cost alternatives to an investor’s diversification toolkit. The Dynamic Risk Parity index offers a systematic approach to risk-based diversification in a way that is convenient, transparent and liquid.”