It’s all about ESG
Vanguard launches first ETF in Europe this year. Vanguard has expanded its fixed income offering with the launch of a short duration US Treasury bond ETF. The Vanguard US Treasury 0-1 Year Bond UCITS ETF (VDST) is listed on the London Stock Exchange with a total expense ratio of 0.07%. Link
BlackRock has launched a range of multi-asset ESG ETF portfolios, a first in Europe. The three-strong range is comprised of iShares ESG ETFs and provides access to a wider universe of stocks and bonds.
The multi-asset ESG ETF range includes:
BlackRock ESG Multi-Asset Conservative Portfolio UCITS ETF (MACG)
BlackRock ESG Multi-Asset Moderate Portfolio UCITS ETF (MAMG)
BlackRock ESG Multi-Asset Growth Portfolio UCITS ETF (MAGG)
The range is listed on London Stock Exchange and Xetra with total expense ratios of 0.25%. Link
DWS expands ESG ETF range with double launch. DWS has expanded its Xtrackers ESG offering with the launch of a USD corporate bond ETF and a euro-hedged global equity ETF.
The Xtrackers ESG USD Corporate Bond UCITS ETF (XZBU) is listed on the London Stock Exchange and Xetra with a total expense ratio of 0.16%.
The Xtrackers MSCI World ESG UCITS ETF EUR – Hedged (XZWE) is expected to list on Xetra later this month with a total expense ratio of 0.25%. Link
Tabula launches US and European investment grade credit default swaps ETF on Xetra. Link
Flows and Performance
ETFs smash through USD 7tn AUM
Global ETF/ETP assets have broken through the USD7tn milestone at the end of August 2020, says ETFGI. Link
Commodity ETFs see big inflows
According to data from Ultumus, the $1.9bn iShares Diversified Commodity Swap UCITS ETF (ICOM) and $1.7bn the Invesco Bloomberg Commodity UCITS ETF (CMOD) saw a combined $500m inflows in the week to 28 August, the second and third highest inflows across all European-listed ETFs. Link
Gold ETFs enjoy ninth consecutive month of inflows. Link
ESG ETFs go from strength to strength
ESG ETFs reached €51.5 bn by the end of August 2020, according to Morningstar.
Equity ETFs held €41.1 bn and bond ETFs held (€10.3 bn). BlackRock and UBS dominate the market holding 62% of all assets. Link
In the US, the JPMorgan Ultra-Short Income ETF (JPST) has become the largest active ETF the $4.9 trillion market. JPST has surged to $13.94 billion in assets after launching in May 2017. Readers in Europe bear note as this fund also exists as a UCITS fund, launching at the same time as its US equivalent. Link
BlackRock and Vanguard look set to extend dominance to active ETFs
A survey of 320 institutional investors conducted by J.P.Morgan found that BlackRock and Vanguard were the two houses investors would prefer to manage their active ETF investments, citing their ability to deliver both the strongest performance and the best value for money.
Just goes to show the influence brand strength has, as both providers are hardly knows for their strong active management capabilities. Link
What do Capital Markets people really do?
Ever wondered, then read out Blackwater’s founding partner Michael O’Riordan article. Link