Capital Group Finally Enters the ETF Market

Capital Group Finally Enters the ETF Market

The $2.6 trillion AUM firm Capital Group has finally entered the ETF market in the U.S. with six actively managed ETFs. And quite a number of index and exchange announcements related to Russia ETFs.
 
 

Fund Launches and Updates

 

EMEA

 

CoinShares has announced that the CoinShares Physical Staked Polkadot (Ticker: CDOT) has been cross-listed on Switzerland’s SIX Swiss Exchange in Zurich. CDOT’s management fee has been reduced to 0.0 per cent p.a. with a Staking Reward of 5.0 per cent p.a. Link Tabula Investment Management is set to close its inaugural product, the €5.4m Tabula European IG Performance Credit UCITS ETF (TCEP) on 14 March. Link

 

Leverage Shares has listed 10 of its 3x short and leveraged ETPs on Aquis Exchange. Link

VanEck plans to increase the ESG screening on the VanEck European Equal Weight UCITS ETF (TEET) and will change its name to the VanEck Sustainable European Equal Weight UCITS ETF. The TER will increase from 0.20% to 0.40%. Link

 
 

THE AMERICAS

 

Capital Group has finally entered the ETF market kicking off with six actively managed ETFs which are listed below.

 

Following AXS Investments and Direxion SEC filings for similar products, GraniteShares has also filed for 19 funds that would offer double the daily return on single companies including Coinbase Global Inc., Palantir Technologies Inc. and Tesla Inc. Link

 

From the 28/2/2022 Old Mission daily note: MSCI said it would not implement the previously announced changes for Russian securities as part of the February 2022 QIR for the MSCI Russia Indexes or impacted composite indexes. Link

Full list of U.S. launches

 
 

Noteworthy

 

Exchanges across Europe have widened the maximum spread requirements for Russian ETFs. The London Stock Exchange issued a rare market notice last week, announcing it would be widening the maximum spread market makers could offer on Russian ETFs to 10%. In a similar announcement, Euronext’s Borsa Italiana also said it would be granting market makers spread exemptions due to the heightened volatility. Link

 

Pressure is mounting on index providers MSCI and JPMorgan to immediately remove Russian stocks and bonds from all their emerging market benchmarks.

 

The closure of Russia’s stock market on Monday and restrictions on the trading of Russian equities and bonds in international markets means these securities will no longer meet index providers’ minimum liquidity requirements needed for their inclusion in benchmarks such as the MSCI Emerging Markets index and JPMorgan Emerging Markets Bond (EMBI) indices. Link

 

State Street is working with U.S. regulators on ‘mega’ plans to launch crypto custody services as soon as regulators approve. State Street Corp. is working with U.S. regulators to ensure it’s in position to roll out custodial services for cryptocurrencies once approved. Source: Blockworks and Link

 

CSOP Asset Management has become the latest fund house to launch an exchange traded product targeting the metaverse investment theme. The CSOP Metaverse Concept ETF is Hong Kong’s first metaverse-focused fund and the asset manager said they expect the global metaverse market to grow from about $5mn in 2020 to $1.5tn in 2030. As of January 19, there were eight metaverse ETFs in South Korea, which have attracted inflows of over $1bn. Link

 

Europe’s largest listed asset manager, Amundi, believes that investors may have to start taking an interest in non-fungible tokens and is reportedly considering launching products to allow investors a path into the NFT market. Link

 

More firms focusing on the retail marketing segment in Germany as Vanguard launches an index fund-based digital investment service, named Vanguard Invest Anglaeservice, for retail investors in Germany. Vanguard is not alone in its attempts to target this market.

 

In January, WisdomTree partnered with ING Germany to offer its products on ING’s online platform, while ETC Group and Comdirect partnered to offer crypto savings plans to German retail investors. In December last year, Scalabale Capital joined forces with CoinShares to offer its retail clients in Germany access to crypto ETPs. Link

 

Moneybox has now included ETFs to its investment offering as the firm moves beyond offering mutual funds to its customers. Products offered are from Vanguard, iShares, LGIM, UBS. The additions come as Moneybox reaches over £2.5bn in AUA from more than 750,000 customers. Link

 

Additional reads

 

Post-Brexit regulatory limbo stifling ETF industry in UK Link

European innovations point to what’s ahead in the US Link

Solactive Launches PAB High-Yield (HY) Indices and Enlarges Paris-Aligned Index Family Link

Shanghai ETF assets surge by 26% in 2021 – ETF trading volume last year exceeded that of all other Asian markets at $2.36tn Link

CoinShares reported a 1.6 billion pound, nearly $2.2 billion, year-over-year increase in ETP assets under management between the fourth quarter of 2020 and the fourth quarter of 2021 Link

 
 
 
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.