A Rare Tie for First In Canada
Invesco finally jumps into the crypto ETP space with their physical bitcoin ETP launch and it’s a rare launch tie for first with two metaverse themed ETFs launched in Canada. And finally, is Europe closer to a consolidated tape? Read on for more ETF and Digital Assets highlights from the week.
Fund Launches and Updates
Global X has expanded its ETF range in Europe with the launch of the Global X Copper Miners UCITS ETF (COPX). Listed on the London Stock Exchange and Deutsche Boerse, COPX has a total expense ratio of 0.65%. Link
Invesco is taking its first steps in the cryptocurrency exchange-traded product space in Europe with the launch of a bitcoin strategy. The Invesco Physical Bitcoin ETP (BTIC) is listed on the Deutsche Boerse with a total expense ratio of 0.99%. An impressive seed with $175 million and they have selected Zodia as the custodian. Link
More ESG index changes as Lyxor switched the €1.4bn Lyxor New Energy UCITS ETF (NRJ) to tracking the MSCI ACWI IMI New Energy ESG Filtered NET Total Return index. The swap means NRJ will change its name to the Lyxor MSCI New Energy ESG Filtered UCITS ETF under the same ticker. Link
HANetf has teamed up with US boutique Saturna Capital to launch an ESG-minded global equity fund that will focus on Islamic-compliant stocks. The Saturna Al-Kawthar Global Focused Equity Ucits ETF, known as AMAL, will launch via the HANetf platform and is listed on London Stock Exchange, Borsa Italiana and XETRA. The fund has a TER of 0.75%. Link
More news from HANetf as they expand their European distribution into France with the launch of 17 thematic ETFs on Euronext Paris. Among the 17 funds are Europe’s first cloud ETF, space ETF, solar energy ETF and airlines ETF. Link
WisdomTree has launched three cryptocurrency ETPs — the WisdomTree Crypto Market (Bloc), WisdomTree Crypto Altcoins (Walt) and WisdomTree Crypto Mega Cap Equal Weight (Mega) all of which are listed on both SIX and Börse Xetra. Both Bloc and Walt have a total expense ratio of 1.45%. The third product, Mega, has a 0.95% total expense ratio. Link
In Canada, it’s a tie for first. Two metaverse ETFs launched yesterday on the Toronto Stock Exchange — Evolve launched the Evolve Metaverse ETF (“MESH“) and Horizons ETFs launched the Horizons Global Metaverse ETF (MTAV). The Evolve ETF will charge a management fee of 0.60%, while Horizons’ will charge a management fee of 0.55%. It will be interesting to see which firm brings in more assets and if the 5bps makes a difference. Link
With the short week in the U.S. there was just one ETF launch last Tuesday — Direxion launched the Direxion Nanotechnology ETF (TYNE US) which has been listed on NYSE Arca, expense ratio of 0.65%. Link
In Australia, Perpetual Asset Management launched an actively managed ETF, the Perpetual Ethical SRI Fund (ticker GIVE) on the ASX. GIVE is the first in what Perpetual says is a suite of active ETFs it intends to launch. Link
Singapore’s UOB Asset Management has listed its first ETF in over a decade with the launch of the UOB Apac Green Reit ETF. The manager’s previous ETF listing was in 2009, when it launched the United SSE 50 China ETF in Singapore. ETF assets in Singapore-listed ETFs grew 57 per cent last year and have reached S$11.5bn at the end of October. Link
According to ETFGI reported data, globally actively managed ETFs and ETPs gathered net inflows of $10.36bn over the month of October. This marked a 5.4 per cent increase on September’s high flows, which ETFGI had called “record flows” at the time.
The ETP/ETF market globally has seen $120.28bn of new money flow into the investment products over the course of the year. At the end of October 2021, the Global Active ETF/ETP industry had 1,338 ETFs/ETPs, with 1,646 listings, assets of $439 Bn, from 258 providers listed on 29 exchanges in 22 countries. Link
We are not holding our breath on this one but once again, there is news that the European Commission is ramping up plans to introduce a consolidated tape to the European market. If this actually happens and someone is willing to dish out the money for it, the creation of a consolidated tape will obviously be a massive hurdle crossing within the European ETF ecosystem.
According to the ETF Stream article, exchanges across Europe would be required to send data to a newly created consolidated tape provider which would then publicise the data using “identical tags and formats”. The provider will be mandated to deliver the trading data in seconds for ETFs and equities. Susan Yavari, regulatory policy advisor at EFAMA added: “Even with a consolidated tape the issue of excessive data costs for asset managers remains. “A not improbable scenario would have asset managers facing even greater costs with the current proposal by paying for a consolidated tape alongside costly proprietary data feeds for which the tape is not a substitute.” Link
State Street Global Advisors has created an ETF hub in southern Europe that will combine the issuer’s Italian and Spanish SPDR teams. Based in Milan, the combined southern Europe division will be led by Francesco Lomartire, head of SPDR ETFs for Italy at SSGA and supported by the firm’s head of SPDR ETFs for Spain, Ana Concejero, who will act as deputy. The hub will enable SSGA to service demand for fixed income ETFs across the region while scaling other growth areas such as ESG investing.
Southern Europe has been a key area of expansion for ETF issuers this year with a number of firms expanding their sales teams. This includes HSBC Asset Management which appointed Alex Merla as head of wholesale for southern Europe in August while KraneShares appointed Paolo Lurcotta to head-up sales in Italy and HANetf hired Annacarla Dellepiane as Italian sales head in September. Link
Additional Interesting reads:
A US government commission has called for tighter controls on flows to China’s capital markets in a move that, if approved, would have profound implications for asset managers and index providers. Link
Hong Kong-listed China government bond ETFs attract huge inflows. Link
$32bn Grayscale Bitcoin Trust feels the heat from cheaper ETFs and is trading at a 15% discount. Link
SPDJI launches S&P 500 Twitter sentiment index. Link
Beverly Chandler from ETF Express interviews Australia’s Talaria Capital launches active ETFs – good nuggets in here about size and growth of Australia’s ETF market which has been a great success story. Link
If you are on the train and have an hour to listen about metaverse ETFs, Trillions is always a fun podcast. Link
ETF Stream recently published a special ESG report which you can find here
Disclosure: This newsletter consists of curated articles which we have read across the globe and while we can’t include every ETF related news item, we would like to hear your thoughts on something we may have missed that you feel is important. All information is sourced from 3rd party media outlets, not our own material and should also not be viewed as financial advice.