ETF: What’s the secret sauce and how do you find it?
Everyone says that ETFs are a scale game and only the large firms can succeed. When you look at the top of the leader board then it’s hard to argue with that theory we suppose.
However, there are many small firms who one could claim to be very successful in ETFs, punching above their weight so to speak.
But what is the secret to their success?
Is it good luck, good timing, good management, good products, good branding and distribution or a sprinkling of all of the above?
This is a fascinating subject and something we are sure many people have much interest in, so much so that we have decided to launch a NEW PODCAST series solely dedicated to exploring this topic. Keep your eye out for the first episode.
Fund Launches and Updates
HSBC Asset Management has expanded its Shariah-compliant range with the launch of Japan ESG and real estate ETFs. The HSBC MSCI Japan Islamic ESG UCITS ETF (HIJP) and the HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF (HINS) are listed on the London Stock Exchange with a total expense ratios (TERs) of 0.30% and 0.35%, respectively. etfstream
Legal & General Investment Management (LGIM) has expanded its ETF range with the launch of a global brands strategy. The L&G Global Brands UCITS ETF (LABL) is listed on the London Stock Exchange, Deutsche Boerse and Six Swiss Exchange with a total expense ratio (TER) of 0.39%. etfexpress
DWS has cut the fee on its synthetic emerging markets Latin America ESG ETF. On Oct. 1, the German asset manager will reduce the expense ratio for the $254 million Xtrackers MSCI EM Latin America ESG Swap UCITS ETF (XMLD) to 0.40% from 0.65%. yahoo
Northern Trust Asset Management (NTAM) is closing two emerging market factor ETFs due to low assets under management (AUM).
The FlexShares Emerging Market High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares Emerging Market Low Volatility Climate ESG UCITS ETF (QVFE) will delist from Euronext and Deutsche Boerse on 17 October. etfstream
A super busy week in the US for launches with more than 20 new launches in total.
J.P. Morgan Asset Management has announced the launch of a new actively managed hedged equity ETF. The JPMorgan Hedged Equity Laddered Overlay ETF (NYSE Arca: HELO) invests in U.S. large-cap equities with a laddered options overlay.
HELO seeks to provide downside protection while foregoing some upside potential. HELO joins a growing suite of active ETFs from JPMAM that includes the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). etftrends
Following hot on the tails of JP Morgan, BlackRock is launching an ETF that invests in U.S. stocks that pay dividends while also using an options-based strategy that aims to provide an additional source of income.
The BlackRock Advantage Large Cap Income ETF BALI will sell call options on the S&P 500 index for a second stream of monthly income beyond the dividend-paying stocks. The fund has a TER of 0.35%. morningstar
Matthews Asia has launched five new actively managed emerging market ETFs on the New York Stock Exchange. The firm’s full suite of transparent active ETF strategies will be similar to its existing mutual funds.
The Matthews Pacific Tiger Active ETF (NYSE Arca: ASIA)
The Matthews India Active ETF (NYSE Arca: INDE)
The Matthews Japan Active ETF (NYSE Arca: JPAN)
The Matthews Asia Dividend Active ETF (NYSE Arca: ADVE)
The Matthews Emerging Markets Sustainable Future Active ETF (NYSE Arca: EMSF). FT
Capital Group has launched five active exchange traded funds (ETFs) today on the New York Stock Exchange. Among the new funds is the firm’s first multi-asset ETF, along with two fixed income and two equity ETFs
The Capital Group Core Balanced ETF (NYSE Arca: CGBL)
The Capital Group Core Bond ETF (NYSE Arca: CGCB)
The Capital Group Short Duration Municipal Income ETF (NYSE Arca: CGSM)
The Capital Group Dividend Growers ETF (NYSE Arca: CGDG)
The Capital Group International Equity ETF (NYSE Arca: CGIE). etftrends
Dimensional Fund Advisors has launched two ETFs including one global stock ETF with exposure to more than 10,000 companies and one focused on ultra-short-term bonds.
The Dimensional World Equity ETF (DFAW) and the Dimensional Ultrashort Fixed Income ETF (DUSB) follow the launch of the Dimensional US Core Equity 1 ETF (DCOR) earlier this month.
The two latest funds, which were both launched on Wednesday, add to the roster of 32 ETFs Dimensional already has with a combined $98 billion in assets under management. etf.com
Betashares is set to acquire Bendigo and Adelaide Bank’s superannuation business, in a move labelled great news for consumers. The ETF provider will buy Bendigo Superannuation, taking on its $1.4 billion in funds under administration and more than 19,000 members.
It’s been described as a transformational step for Betashares, expanding its business beyond ETFs and into the broader financial services sector. financialstandard
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 we speak to Jacob Lindberg, founder and CEO of Vinter. Listen to Jacob HERE.
Lloyds Bank has picked BlackRock’s iShares arm for the launch of an exchange traded fund service designed to attract do-it-yourself investors.
The UK-based lender’s new ETF Quicklist gives retail investors access to 16 UK-listed ETFs run by the world’s largest asset manager that invest in “common themes and markets”. ignites
ETFs investing on the basis of environmental, social and governance criteria have not beaten the market over the past decade, analysis has shown. The findings come despite widespread claims since 2020 that ESG is able to deliver outperformance by steering investors away from poorly run and heavily polluting companies and towards the “winners” of the future. FT
Will a Spot Bitcoin ETFs move the needle for Institutional adoption of Digital Assets in the U.S.?. yahoo
Movers and Shakers
Sean Cunningham, Hong Kong-based head of Asia Pacific ETF distribution at J.P. Morgan Asset Management, has departed from the firm after around five years.
Jillian Delsignore has joined Nasdaq as Global Head of Investor Distribution Strategy.
From behind the Desk
Recently, we spoke to someone in the industry who had been looking for a new role for a while and was of a certain age.
This individual had come to the conclusion that finding a job at their age had become an impossible task and it was time to “let go”, as they said.
We found this incredibly sad and somewhat depressing as the unfortunate fact is when you hit fifty or close to in this game you are now nearly considered washed up – you lack “enthusiasm” or “not willing to get your hands dirty anymore”.
Employers want young people who they assume have energy and vigour blah blah blah, and they are willing to trade this for experience.
To us it makes no sense as they are leaving people with massive experience, talent and energy on the sidelines who have the ability to add so much to an organisation, but because of the simple fact they are “older”, they are ruling them out of the selection process. Madness.