A casualty on the ETF battlefield
UniCredit liquidated its two remaining ETFs showing just how hard it is to succeed in certain markets.
Australia reported positive ETF flows for October and is quietly catching up to Europe and America.
Fund Launches and Updates
Chimera Capital LLC has announced plans to launch the Chimera FTSE ADX 15 ETF on the Abu Dhabi Securities Exchange. ETF Express
Scalable Capital has entered the crypto space with the launch of four bitcoin and ethereum ETPs. The four ETPs are listed on the Deutsche Börse Xetra with total expense ratios of 0.95%. ETF Stream
UniCredit has liquidated its two remaining ETFs as it exits the European market. The Italian bank delisted the UC MSCI European Green Bond EUR UCITS ETF (ECBI) and the UC Refinitiv European Convertible Bond UCITS ETF (ECBD) from the Deutsche Börse Xetra at the end of October due to low demand. ETF Stream
VanEck is set overhaul its video gaming ETF by adding sustainable metrics.
Effective 16 December, the $463m VanEck Video Gaming and eSports UCITS ETF (ESPO) will start tracking the MarketVector Global Video Gaming & eSports ESG index instead of the MVIS Global Video Gaming & eSports index. ETF Stream
Vanguard has launched the ESG EUR Corporate Bond UCITS ETF and the ESG USD Corporate Bond UCITS ETF. Both products track Bloomberg indices and have been listed on the London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana, SIX Swiss Exchange and Euronext Amsterdam. InvestmentWeek
In Canada, BMO Investments Inc. is introducing a suite of ETFs and mutual funds that will be overseen by Cathie Wood’s ARK Investment Management.
The products will have mirroring tickers — BMO ARK Genomic Revolution Fund (ticker ARKG), BMO ARK Innovation Fund (ARKK) and BMO ARK Next Generation Internet Fund (ARKW). Each ETF has a management fee of 0.75% and will be listed on the Toronto Stock Exchange. Advisor Perspectives
In America, BlackRock has launched the iShares Environmentally Aware Real Estate ETF (ERET US) has been listed on Nasdaq with an expense ratio of 0.30%. ETF Strategy
Dimensional Fund Advisors has launched its first fixed income ETF incorporating ESG criteria. The Dimensional Global Sustainability Fixed Income ETF (DFSB US) has been listed on NYSE Arca with an expense ratio of 0.24%. ETF Strategy
Federated Hermes launched the actively managed Federated Hermes U.S. Strategic Dividend ETF (NYSE Arca: FDV). This launch marks Federated Hermes’ third ETF product, following the 2021 introduction of two active, fixed income products. FDV carries an expense ratio of 0.5%. Nasdaq
Hartford Funds has launched the Hartford Disciplined US Equity ETF (HDUS). HDUS is the firm’s seventh multifactor ETF and sixteenth ETF across the firm’s product suite. HDUS trades on the New York Stock Exchange with an expense ratio of 0.19%. FA Magazine
VanEck has launched a new actively managed ETF that aims to deliver significant income by investing across the highest-yielding segments of the equity and fixed income markets.
The VanEck Dynamic High Income ETF (INC US) has been listed on NYSE Arca with an expense ratio of 0.43%. ETF Strategy
Full list of U.S. launches:
In Hong Kong, Phillip Capital Management launched the Phillip HK Newly Listed Equities Index ETF on the Stock Exchange of Hong Kong. Co-designed and developed by Solactive and Phillip Capital, the ETF tracks the Solactive Hong Kong Newly Listed Equities Index. The Edge Singapore
In Australia, BetaShares has reported that ETFs listed down under experienced significant positive flows during October of $7.3 billion.
The rate of assets under management grew by 5.9% and witnessed a total market cap increase of $7.3 billion, the largest industry monthly AUM growth to date in dollar terms, and finished the month at $131.7 billion.
All major asset classes recorded net inflows due to the significant market rally. The composition of flows was relatively balanced, with Australian equities experiencing the highest flows of $417 million. Cash ($396 million), global equities ($369 million) and fixed income ($308 million) also saw sustained flows.
Additionally, the launch of eight new products contributed to the growth seen during the month.
Abrdn, Hejaz and Firetrail were three new Active ETF issuers which entered the market. Money Management Australia
Vermont based Teucrium Trading, LLC, has announced that it has expanded service offerings for emerging and established ETF issuers and will now be known as Teucrium ETF Solutions.
The firm now offers end-to-end support for new and existing fund sponsors, including: White Label Services, Portfolio Management, Capital Markets, Fund Operations, Financial Operations/Reporting, Compliance Consulting/Management, Sales & Marketing Consulting/Support
“Our expanded service offerings will allow us to support fund-sponsors at any point in their life cycle, and work with sponsors to develop customised solutions to meet their needs,” says Springer Harris, Head of Teucrium ETF Solutions. ETF Express
In Asia, ETF providers are busy working towards submitting applications to launch retail-oriented crypto futures ETFs after the local regulator announced it would open the door to such products.
Being among the first to list a retail crypto futures ETF on the local bourse will be particularly critical to the success of the product, given the narrow range of permissible underlying assets outlined in a Securities and Futures Commission circular.
Richard Douglas, Hong Kong chief executive of Saxo Markets, said his company had a wide range of third-party crypto ETPs available to professional investors and it hoped to be able to offer a number of these to Hong Kong retail investors.
Joy Lam, Hong Kong-based virtual asset specialist at law firm Baker McKenzie, said there had been strong interest from managers in launching crypto vehicles in Hong Kong for some time.
“We first started getting calls from some of the more traditional fund managers about the possibility of crypto ETFs and other crypto-focused products probably about 15 months ago,” Lam said. Financial Times
ESMA to implement ESG fund naming rules. ETF Stream
HSBC AM joins BlackRock, UBS AM and Invesco in downgrading Article 9 Paris-aligned climate ETFs. ETF Stream
The 2022 Lipper Fund Award mutual fund and ETF winners in Canada have been announced. The Globe and Mail
ETF investor confidence up three-fold in October. Funds Europe
Three ETF trends down under. Livewire Markets
Grayscale caught up in the FTX storm. Financial Times
From behind the desk with Andrea Murray
This is the mother of all weeks when it really feels like the holiday season is in full swing.
London is almost fully lit up with Christmas decorations and many of us have already kicked off work holiday parties or maybe the ETF Stream Awards this week is the first to push you into that mode.
Not related to ETFs at all but since gift buying chaos has commenced, I thought I’d help by sharing Bill Gates’ all-time favourite book list which is below.
And if you are really cheap, you can hunt down free versions of the books which Gates left in 100 Free Little Libraries across the globe (nerd out and view them here). Also, hope to see many of you at the Awards dinner on Thursday!