Mixed Bag of Global ETF Flows

Mixed Bag of Global ETF Flows

A busy week with April ETF flows being reported across the globe.

And finally, after a two-2week delay, it looks like Australia is ready to be next in line for their first physical crypto ETFs.

 

Fund Launches and Updates

EMEA

DWS plans to swap the indices on the £245m Xtrackers MSCI Canada UCITS ETF (XCAN) and the £314m Xtrackers MSCI Pacific ex Japan UCITS ETF (XPXJ) to include ESG metrics. As a result of the changes, XCAN will change its name to the Xtrackers MSCI Canada ESG Screened UCITS ETF while XPXJ will be renamed Xtrackers MSCI Pacific ex Japan ESG Screened UCITS ETF. Separately, DWS is also adding an ESG screen to its Xtrackers DAX Income UCITS ETF (XDDX). ETF Stream link

 

Global X has listed the Global X Silver Miners UCITS ETF (SILV) on the LSE with a TER of 0.65% ETF World and also the Global X Uranium Ucits ETF (URNU), on the LSE and Deutsche Börse Xetra last week. Financial Times

 

Invesco has launched the Invesco S&P 500 China A 300 Swap UCITS ETF (C300) and the Invesco S&P China A MidCap 500 Swap UCITS ETF (C500). Both products are listed on the LSE, Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange with a total exchange ratio of 0.35%. ETF Stream

 

JP Morgan Asset Management has launched the JP Morgan Eurozone Research Enhanced Index Equity ESG UCITS ETF (JREZ) and the JP Morgan Japan Research Enhanced Index Equity ESG UCITS ETF (JREJ). Both ETFs are actively managed and listed on the London Stock Exchange, Deutsche Borse, Six Swiss Exchange and Borsa Italiana with total expense ratios of 0.25%. ETF Stream

 

SEBA Bank has listed Bitcoin, Ethereum, Polkadot ETNs on the Deutsche Börse as well as an ETN that tracks the performance of the SEBA Crypto Asset Select Index (SEBAX). This currently comprises the cryptocurrencies Bitcoin, Ethereum, Solana, Litecoin, Cardano, Polkadot and Avalanche. Hedgeweek

 

State Street Global Advisors has listed the SPDR Bloomberg SASB 0-3 Year Euro Corporate ESG UCITS ETF on Xetra and the Börse Frankfurt. ETF Express

 

VanEck has launched the VanEck Chainlink ETN (VLNK) and the VanEck Smart Contracts Leaders ETN (VSMA) on the Deutsche Boerse with TERs of 1.50%. ETF Stream

 

THE AMERICAS

In Canada, CI Global Asset Management launched the CI Galaxy Blockchain ETF (CBCX) and the CI Galaxy Metaverse ETF (CMVX) on the Toronto Stock Exchange. Each has an annual management fee of 0.50%. Financial Post

 

Full List of U.S. ETF Launches:

 

ASIA-PACIFIC

After a two-week delay, Australia’s first listed cryptocurrency investment funds will begin trading this Thursday on the Cboe exchange. Cboe Australia confirmed that it will commence hosting three new exchange-traded funds – the Cosmos Purpose Bitcoin Access ETF, ETFS 21Shares Bitcoin ETF and ETFS 21Shares Ethereum ETF on May 12. Australian Financial Review

 

Fund Flows and Trading Volume

 

In Canada, over $1.5 billion flowed into Canadian ETFs in April, a sharp decline after inflows of $13.5 billion over the first three months of the year. Equity ETFs attracted $917 million which was down from $2.5 billion in March. Bond ETFs attracted $645 million in new money and crypto ETFs saw outflows of $338 million. Investment Executive

 

In Europe, April represented an upturn for ETF flows following the slowdown in Feb and March, with the industry recording net inflows of $17b for the month vs $9b in March and $12bn in February. In terms of asset class allocation, April saw a return to dominance for Equity products vs the dip experienced in March. Equities saw $11.3b of net inflows vs $4.3b for Fixed Income and $1.4 for commodities. Commodities continue their hot streak largely driven by allocations to gold, a classic flight to safety trade although flows were down on the previous month where we saw $3.9b of inflows. April was a disappointing month for Cryptocurrencies, recording outflows of $202m which largely wiped out the inflows from the previous months inflows of $228m.

Globally, BlackRock reported that monthly allocations to global ETPs fell to their lowest level since March 2020 in April, with $27.4 billion of inflows, down from $117.4B in March. While inflows dropped across asset classes, they fell most acutely in equities, where just $2.8 billion was added (down from $76.2 billion in March). Fixed income flows fell slightly from $25.5 billion to $18.8 billion, while commodity flows tempered to $3.6 billion. ETF Express

In the U.S., State Street reported that U.S. listed ETFs had $6.1 billion of net outflows in April, marking the end of a record-setting 34-month net inflows streak during which they took in $1.8 trillion is assets. Equity funds led April’s outflows at $20.3 billion, according to the report.

 

That narrowly missed equity funds’ worst-ever monthly outflows of $20.8 billion, set in May 2019. Fixed-income ETFs netted about $8.4 billion in April, primarily driven by ultrashort and short-duration government bond ETFs. Pensions and Investments

 

Noteworthy

 

In the U.S., Cboe Global Markets has acquired Eris Digital Holdings (ErisX), an operator of a US-based, digital asset spot market, a regulated futures exchange and a regulated clearinghouse. Ownership of ErisX allows Cboe to enter the digital asset spot and derivatives marketplaces and in addition to operating the existing spot, derivative and clearing platforms. Cboe also intends to develop and distribute a range of digital asset data products. Hedgeweek

 

Franklin Templeton may not be finished shopping for other companies including other ETF firms according to a recent interview of CEO Jenny Johnson. Franklin’s latest financials put the firm’s ETF business at about $13bn in assets under management including both active and passive strategies.

 

Franklin has been particularly acquisitive in recent years, buying Legg Mason in 2020 and O’Shaughnessy Asset Management in January. Citywire Selector link

 

WisdomTree Investments is the latest fund manager trying to get in on the crypto boom but instead of waiting for SEC spot bitcoin approval like everyone else, they are going the route of separately managed accounts that hold crypto and can be accessed by financial advisers.

 

“Crypto exchange-traded products in the United States may not be the wrapper with which the customer truly accesses crypto,” said WisdomTree CEO Jonathan Steinberg in an interview with Barron’s. While such products are on the rise in Europe, in the U.S. “we don’t see that anywhere near on the horizon,” he said. Barron’s

 

Additional reads

 

Russia sanctions present unique challenge to the ETF industry ETF Stream

 

The deadline is looming for investors to opt out of a class action lawsuit over a Canada listed inverse ETF product. Investment Executive link

 

Elon Musk tweets “Passive has gone too far”. ETF Stream link

 

SEI adds hybrid model portfolios with Capital Group ETFs. Citywire USA

 

Sparks fly in battle for control of WisdomTree. Financial Times

 

Vanguard makes cost changes to more than $137bn in ETFs and mutual funds. Financial Times

 

Crypto clouds may part as result of directive. Pensions & Investments

 

Fund managers including Danske, Nordea and Jupiter have taken steps to permanently shut down funds heavily exposed to Russia. Financial Times

 
 

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.