Credit Suisse surpasses $2bn AuM
Stocks in Europe and the U.S. were positive last week even against persistent virus concerns.
As the first half of the year drew to a close, European equities outperformed U.S. markets for the first full month since September.
For the month of June, the Stoxx 600 was up +3.11% whilst the S&P 500 was up +1.99% for the same period. On the week , the FTSE 100 was flat with a slight increase of 0.04%, the FTSE 250 was up +1.14%, Stoxx Europe 600 increased +2.08% and the DAX was up +3.63%.
U.S. equities were up +4.07% for the same period (*markets were closed on Friday).
The CBOE Volatility Index dropped 20.3% from the previous week closing at 27.68 points, the lowest level since June 10. In the past month, the VIX reached a high of 44.44 points and a low of 23.54 points.
WTI Crude oil closed last week at $40.32 a barrel, up +5.61% for the week.
ETF Launches and Updates
Since their return to the ETF space in March of this year, Credit Suisse’s range of ETFs have surpassed $2bn in assets under management.
The three products that were launched in March, the CSIF MSCI USA Blue, CSIF MSCI USA ESGLeaders Blue and CSIF MSCI World ESG Leaders Blue Ucits ETFs complement their 98 existing index funds with $104bn assets under management.
They also recently launched two new passive strategies that focus on ESG and allocate to global real estate and US small caps: the CSIF (IE) MSCI USA Small Cap ESG Leaders Blue UCITS ETF and CSIF (IE) FTSE EPRA Nareit Developed Green Blue UCITS ETF.
Both ETFs are trading on SIX Swiss Exchange, Deutsche Börse, and Borsa Italiana.
French Asset Manager Amundi launched a new ETF providing investors access to sustainable investment opportunities in emerging markets.
The Amundi MSCI Emerging ESG Leaders UCITS ETF DR (C), holds large and medium-sized companies from 26 emerging markets in accordance with sustainability criteria.
The ETF is trading on Xetra and BörseFrankfurt. TER is 0.18%. Source: ETF Express
Flows and Performance
The Financial Times published analysis from Morningstar comparing active management performance versus passive funds.
The data looked at European domiciled, open-ended funds with at least €1bn in assets at the end of June and found that approximately two-thirds of the more than 1,700 actively managed funds Morningstar examined delivered negative returns this year.
About two-thirds of passive funds that Morningstar examined also generated negative returns.
But the analysis also found fewer examples of outsized positive returns among index or exchange traded funds compared with active funds.
The best-performing actively managed fund was the Ruffer gold fund, which returned 55.7%. The best performing passive fund, BlackRock’s iShares Gold Producers ETF, returned 22%. Source: FT
In the U.S., fund flows have already been published for the month of June.
Fixed-income ETFs took in $33.5 billion in net new flows–a monthly record. On net, $58.6 billion flowed into U.S.-listed ETFs during the month, pushing year-to-date inflows to $202.2 billion.
Assets in fixed income ESG ETFs in Europe have risen 543% over the past three years to €8.3bn, as at 31 May, according to data from Morningstar.
In the United States
A US-listed $4.6 billion ETF that has Tesla Inc. as its biggest holding posted the best week of inflows on record.
The ETF, which has taken in $1.7 billion in 2020, has rallied almost 40% in the span, compared with a six per cent drop for the S&P 500. Source: BNN Bloomberg
Fund in Focus
Bloomberg recently posted a story about skyrocketing sales of canned meat as demand for such staple items is booming across the globe.
Now, the economic downturn is underpinning demand. All of this brings us to look at how consumer staples performed during the lockdown with this week’s fund in focus – the SPDR MSCI Europe Consumer Staples UCITS ETF.
Fund Performance and Flows
Top 3 Best Weekly Performers in the UK
WisdomTree Brent Crude Oil +5.39%
WisdomTree Brent Crude Oil GBP Daily Hedged +5.39%
WisdomTree WTI Crude Oil GBP Daily Hedged +5.26%
Top 3 Worst Weekly Performers in the UK
WisdomTree Brent Crude Oil 1x Daily Short -5.27%
WisdomTree Cocoa -5.06%
Lyxor MSCI Russia UCITS ETF (Dist) -2.16%
Top 3 Weekly UK Inflows
Lyxor US Tips DR UCITS ETF Monthly Hedged GBP (Dist) +$218.2m
iShares Treasury Bond 0-1yr UCITS ETF USD (Acc) +102.2m
iShares Global High Yield Corp Bond GBP Hedged UCITS ETF (Dist) $45.9m
Top 3 Weekly UK Outflows
ETFS Gold Bullion Securities -$64.8m
iShares Core € Corp Bond UCITS ETF EUR (Acc) -$60.3m
Invesco FTSE 250 UCITS ETF -$25.7m
*Fund in Focus or any portion of this newsletter are informational only and not intended to provide recommendations of any kind. Data source: ETFLogic