Can the Boutique ETF manager swim with the sharks?
There is no doubt that this has been the year of Fixed Income so far.
Record inflows ytd, BlackRock calling this a “once in a generation” opportunity in the fixed income space”. We think it’s fair to say that bonds are definitely back.
All this got us thinking though. What about those boutique ETF managers who only focus on say Thematic products or equity exposure to a particular market?
They all lose out when the flows become so one directed, right?
So to be truly success, do all managers need to have a full suite of products to cater for all market conditions or is there still a place for the niche provider even though their business may be more cyclical?
Fund Launches and Updates
Global X has expanded its suite of income ETFs with the launch of a covered call S&P 500 ETF. The Global X S&P 500 Covered Call UCITS ETF (XYLU) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.45%. etfstream
Invesco has introduced the first ETF in Europe providing equally weighted exposure to the companies that make up the Nasdaq 100. The Invesco Nasdaq-100 Equal Weight UCITS ETF (IEWQ) is coming to market with an expense ratio of 0.20%. etfstrategy
Invesco has also launched this time with an ETF offering exposure to the US insurance industry. The Invesco Dow Jones US Insurance UCITS ETF (INSU) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.35%. etfstream
Europe’s first spot Bitcoin ETF is set to debut later this year after a long delay. The Bitcoin ETF by Jacobi Asset Management was set to debut on the Euronext Amsterdam exchange in July 2022.
However, unprecedented market conditions caused by the collapse of the Terra ecosystem in May 2022, as well as the FTX collapse in November, forced the asset manager to postpone the listing.
The Jacobi Bitcoin ETF received approval from the Guernsey Financial Services Commission (GFSC) to launch its Bitcoin ETF in October 2021.
The asset manager told the Financial Times that it has decided to launch the ETF now because it has seen a gradual shift in demand compared with 2022. The asset manager told Cointelegraph that it is still assessing the launch and will share a date soon. cointelegraph
Dimensional Fund Advisors is seeking permission to create ETF shares out of its mutual funds, using a structure that had been exclusively Vanguard Group’s before the asset management behemoth’s patent expired this year.
Dimensional, applied with the SEC to implement a fund structure that Vanguard had used exclusively from 2003 through this May. etf.com
Global X Funds has launched its first free cash flow fund with the aim of investing in companies that may be in good shape to boost dividends and invest in new projects.
The Global X U.S. Cash Flow Kings 100 ETF (FLOW) follows an index that tracks large and midcap U.S. stocks that have higher-than-average free cash flow yields. etf.com
Xtrackers launched its first three thematic stock ETFs in the U.S. Thursday, focusing on semiconductors, green infrastructure and cybersecurity stocks.
Xtrackers, currently has 38 ETFs with $19.5 billion in assets trading in the U.S. The three thematic ETFs it rolled out are the Xtrackers Semiconductor Select Equity ETF (CHPS), the Xtrackers US Green Infrastructure Select Equity ETF (UPGR) and the Xtrackers Cybersecurity Select Equity ETF (PSWD). yahoo
Simplify Asset Management has launched the Simplify Multi-QIS Alternative ETF (NYSE Arca: QIS). The new ETF invests in a diversified portfolio of third-party quantitative investment strategies across equities, interest rates, commodities, and currencies. yahoo
Evolve Funds has launched a new ETF in Canada providing targeted exposure to technology companies within the Nasdaq 100. The Evolve NASDAQ Technology Index Fund (QQQT CN) has been listed on the Toronto Stock Exchange with a management fee of 0.25%. etfstrategy
China Asset Management’s Hong Kong-based subsidiary has debuted the largest renminbi-denominated money market exchange-traded fund in the territory, after raising over Rmb700 million (US$97.7 million) in initial assets.
The ChinaAMC RMB Money Market ETF was officially listed on the Hong Kong Stock Exchange on Wednesday, becoming just the third such strategy in the market that is denominated in China’s official currency. ignites
Exchange Traded People is a podcast series focused on exploring the career journey of industry leaders within the ETF and Digital Assets space. Get to hear their personal story and be inspired.
This week’s episode is with Kevin Gopaul, President of BMO ETFs based in Toronto.
In this conversation we hear Kevin talk about how he made the jump from fund accounting into portfolio management, why having adaptability is the key to success in life, how having insecurities allows him to have better interactions with his team and why taking on a project to restore an old American car is on his bucket list for the future. Listen to him HERE
Australia’s exchange-traded fund industry hit a new all-time record high of A$150 billion (US$102 billion) in total assets during the first half of the year as domestic investors look to diversify their portfolios amid a generally risk-off sentiment, according to a new Betashares report.
At the end of last year, Betashares projected that the Australian ETF market would close 2023 with an excess of A$150 billion in total fund assets.
The ETF provider now predicts it could end the year with another milestone by surpassing A$160 billion in total assets despite ongoing uncertainties in local markets, according to its latest Australian ETF review report. investmentmagazine
ETFs tracking the Nasdaq 100 are expected to undergo changes later this month following a special index rebalance that aims to address over-concentration within the largest constituents.
The index’s methodology states that Nasdaq will take action if the largest constituent exceeds a weight of 24% or if the aggregate weight of all stocks with individual weights above 4.5% is greater than 48%.
While the largest constituent, Microsoft, commands a weight of 12.9%, well below the threshold for diversification rules to apply, the largest seven constituents currently collectively account for 51.2% of the index’s total exposure.
They are Microsoft (12.9%), Apple (12.5%), Alphabet (7.4%), Nvidia (7.0%), Amazon.com (6.9%), and Tesla (4.5%). According to rebalancing rules, the weight of these constituents will be proportionally reduced such that their aggregate weight in the index does not exceed 40%.
These changes are expected to be implemented prior to the market opening on Monday, 24 July 2023. etfstrategy
BlackRock Bitcoin ETF could unlock $30 trillion worth of wealth, Bloomberg analyst says.
$30 trillion worth of capital could suddenly unlock for the Bitcoin market if a Bitcoin spot ETF is approved by the U.S. Securities and Exchange Commission, according to Bloomberg ETF analyst Eric Balchunas.
That is the estimated amount of assets controlled by financial advisors in the U.S., who would be willing to get exposure to Bitcoin through a regulated exchange-traded fund. cointelegraph
The top-three priorities for asset managers this year include broadening product distribution, increasing their ability to offer personalized investment solutions, and creating new investment vehicles, according to the latest Cerulli Edge—U.S. Managed Accounts Edition, 2Q 2023 Issue.
In terms of product priorities, nearly two-thirds (62%) of asset managers say active exchange-traded funds (ETFs) are a top priority for their firm to develop this year. cerulli
Movers and Shakers
Michael Stanley has been appointed Head of Exchange Traded Products at London Stock Exchange.
Tim Bevan has become sole CEO at ETC Group with previous co-CEO Bradley Duke moving to chief strategy officer at the business.
ETF Managers Group CEO Samuel Masucci has resigned following the takeover by Amplify.
From behind the Desk
What are you doing to build your personal brand outside of your existing company?
Very little is what we would guess.
Most people pay very little attention to this and are definitely missing a trick here.
As an employee you are always at the mercy of your employer. You could be here today but gone tomorrow. Therefore, the more effort you put in to building your brand, the more known you become, the more connections you have and the easier it becomes be to find your next role.
It’s not rocket science, yet most people seem to think it is.