Crypto ETFs Among Best-Performing Funds in Europe
Firms entering partnerships continue as Invesco and Galaxy Digital work to create a suite of crypto ETFs in the U.S. Flow data is quiet but plenty of global ETF launches and European retail exchange Equiduct has launched ETF trading in an effort to increase ETF access for retail investors. Read on for more ETF highlights from the week.
Fund Launches and Updates
21Shares announced the listing of its Solana ETP and Polkadot ETP on Euronext Paris and Amsterdam as of 23 September. Link Additionally, the firm also announced the listing of six additional cryptocurrency ETPs, for a total of 10 on Deutsche Boerse XETRA. The new crypto ETPs include Solana ETP, Polkadot ETP, Cardano ETP, Stellar Lumens ETP, Tezos, and the Crypto Basket Index ETP. Link
BNP Paribas Asset Management (BNPP AM) announced that its Easy CAC 40 UCITS ETF will now replicate the CAC 40 ESG NTR, which launched in March this year and represents the 40 mainly French companies with the best ESG practices. The ETF is categorised under Article 8 of the SFDR and has an ongoing charge of 0.45%. Link
ETC Group is launching a bitcoin cash ETP on the Deutsche Boerse via white-label ETF issuer HANetf. Physically-backed, the ETC Group Physical Bitcoin Cash ETP (BTCH) launched on 21 September with a total expense ratio of 1.95%. Link
Franklin Templeton has registered its 16-strong UCITS ETF range in France while listing eight of the suite on Euronext Amsterdam. Effective 15 September, investors will be able to access the range which was already available in the US, Canada, Mexico, UK, Germany, Italy, Switzerland, Austria and the Nordics. Link
GraniteShares has continued its expansion in Europe with the launch of 62 trackers ETPs on Euronext Paris. Investors now have access, in euros and on the Paris Exchange, to 16 ETPs offering long and short daily leveraged exposures (+ 3x and -3x) on the largest individual American stocks: Amazon, Apple, Facebook, Google, Microsoft, NVIDIA, Tesla, and Uber. Link
VanEck has launched three crypto exchange-traded notes tracking solana, TRON and polkadot.
The VanEck Vectors Polkadot ETN (VDOT), the VanEck Vectors Solana ETN (VSOL) and the VanEck Vectors TRON ETN (VTRX) are listed on Deutsche Boerse with total expense ratios of 1.5%. Link
Xtrackers has converted a range of equity sector ETFs to ESG funds and cut the total expense ratio by ten basis points. Nine existing Europe equity sector ETFs completed a transition to ESG screened MSCI indices last week, along with corresponding name changes. Funds in the previous Xtrackers Europe sectors range featured a total expense ratio of 0.3%, but the new ESG-screened ETFs will each be available for 0.2%. Link
Invesco announced last Wednesday that it’s partnering with Galaxy Digital Holdings to develop a “comprehensive suite of U.S.-listed, physically backed, digital asset” funds. The venture reflects Invesco’s ambition to be at the forefront of crypto ETFs. Link
Additional launches last week:
In Australia, Loomis Sayles has become the latest asset manager to launch an active ETF version of its Global Equity fund for Australian investors. The new fund would be called the Loomis Sayles Global Equity (Quoted Managed) fund and is expected to launch next month. Other firms which had recently launched active ETFs including Magellan, Equity Trustees, Antipodes and Fidelity. Link
ETF Stream reported that WisdomTree’s carbon exchange-traded product has attracted over $100m inflows since relaunching less than a month ago. WisdomTree Carbon (CARB), returned to market on 27 August in flows as investors look to capture the recent upside in carbon emission prices. Its assets under management (AUM) now stands at $105m. Link
U.S.-listed ETFs lost more than $29.6 billion to outflows from Sept, 17 to Sept. 23, according to data provider FactSet, with approximately $27.5 billion in outflows on Monday alone. The SPDR S&P 500 ETF Trust (SPY) had the largest outflow of funds, with $5.8 billion being pulled, while the Vanguard Extended Market ETF (VXF) suffered the largest loss of percentage of assets under management, with a 16.21% drawdown. Link
European retail exchange Equiduct has launched ETF and ETP trading in a bid to boost ETF access for retail investors across Europe. The firm said roughly four million investors will eventually have access to 436 ETFs across 13 different issuers via its best execution service Apex. Currently, 321 ETFs are live with a further 125 set to be rolled out in early 2022. The products will trade with 0% trading fees for retail brokers. Virtu will act as the market maker and liquidity provider for the exchange.
Issuers currently signed up to the platform include Lyxor, VanEck, DWS, BlackRock, Legal & General Investment Management, State Street Global Advisors and Invesco. Link
In the latest of a series of crypto crackdowns, China is focusing its regulatory scrutiny on crypto exchanges that set up shop abroad to dodge local regulations. China’s central bank said that overseas facilities offering services inside China are “illegal” and warned that any local staff who help these businesses operate, or even provide marketing and technical support, “shall be investigated”. Link
BlackRock Inc. is planning to launch a new ETF, the iShares MSCI China Multisector Tech ETF, just weeks after the $7 billion KraneShares CSI China Internet Fund (ticker KWEB) overtook its largest U.S. ETF targeting the Asian nation. In August, KWEB overtook BlackRock’s $6.1 billion iShares MSCI China ETF (MCHI) to become the biggest U.S.-listed ETF focused on China. Pretty impressive.
According to Bloomberg, BlackRock is launching new funds less frequently and just seven iShares ETFs have debuted so far this year. That compares with more than 30 in all of last year and 16 in 2019. Link
Additional interesting reads:
Eight of the 10 best-performing ETFs so far this year are European-based funds tracking cryptos, reported The Wall Street Journal last week. Link
Where to Invest in Asia — Five wealth managers share investment ideas for the region including ETFs. Link
Passive investment blamed for inflating stock market bubble – a research report suggests that the rise of passive funds has accounted for 27% of the increase in the cyclically adjusted Shiller P/E ratio. Link
A chart report on bonds with negative yields around the world – fixed-income ETFs, with assets at approximately $1.3tn, have provided a new pool of buyers for negative-yielding bonds. Link
21Shares, the pioneering Swiss crypto ETP issuer, has selected Vinter, the specialised crypto asset index provider, for its existing and new range of crypto ETPs. 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.