New investors to accelerate growth in European ETF market
A new report predicts a wave of ETF adoption from the next generation of European investors. New data from YouGov commissioned by BlackRock shows:
- ETF investors are getting younger, as 18–34-year-olds replace 35+ age group as dominant cohort.
- Number of European ETF investors projected to grow by 32% in the next 12 months.
- Iberia expected to grow the most, and Germany expected to deliver 2 million new ETF investors.
- Across Europe, 41% of the next wave of ETF investors will have never invested before.
Fund Launches and Updates
Helveteq, a Swiss issuer of ESG-transparent investment products, has launched an ETP providing physically backed, carbon-neutral exposure to gold that has been responsibly sourced.
The Helveteq Swiss Green Gold ETP (AUCO2 SW) has been listed on SIX Swiss Exchange in US dollars with a TER of 0.50%. etfstrategy
Leverage Shares has launched 15 new ETPs on the London Stock Exchange, including the first physical pure-play exposure to FAANG+ stocks in Europe.
Additionally, the firm launched a variety of leveraged bond ETPs, including long and short positions on 7-10 year US Treasury bonds, 20+ year US Treasury bonds and Treasury Inflation Protection Securities.
The firm also launched leveraged ETPs geared towards single stocks and sectors, with long and short versions of Ferrari, Exxon, Coinbase and Indian equities. Finally, the firm launched a short volatility long technology ETP, aiming to benefit from the disconnect between futures prices and spot prices. investment week
Deutsche Digital Assets (DDA) is set to launch a crypto exchange-traded product (ETP) tracking the 10 largest cryptocurrencies by market cap.
The DDA Select 10 ETP (SLCT) will list on the Deutsche Boerse “in the coming weeks” with a total expense ratio (TER) of 1.69%. etfstream
BlackRock and digital wealth manager Bux are launching risk-adjusted ETF savings plans. The savings plans, available on the Bux platform and set to be launched later this year, will offer retail investors access to BlackRock ETFs grouped across the risk spectrum – from defensive to growth – in “off the shelf” portfolios. etfstream
Five ETF issuers have filed to launch ether futures ETFs.
Grayscale was the first issuer to act, filing on May 9 to launch the Grayscale Ethereum Futures ETF, Direxion, Roundhill Investments and Bitwise followed on May 10 with their own versions while Valkyrie lodged an application on May 12. ft
AllianceBernstein continued its push into the ETF space this week with the launch of the AB High Yield ETF (HYFI), which is the firm’s first mutual fund to ETF conversion. The new fund lists on NYSE ARCA with a TER of 0.40%. financial advisor
Roundhill have launched the Roundhill Generative AI & Technology ETF (NYSE Arca: CHAT). CHAT provides investors exposure to companies at the forefront of artificial intelligence technology, with a focus on generative AI. yahoo
BNY Mellon Investment Management has launched two actively managed ETFs designed to offer investors additional choices in women’s and innovation investments.
The Women’s Opportunities ETF (BKWO) and the Innovators ETF (BKIV) are sub-advised by Newton Investment Management North America. financial advisor
Global ETFs industry gathered US$56.67 billion in net inflows in April 2023, bringing year to date net inflows to US$201.69 Bn, according to ETFGI.
- Global ETFs industry gathered net inflows of $56.67 Bn during April.
- YTD net inflows of $201.69 Bn are the third highest on record, after YTD net inflows of $464.19 Bn in 2021 and YTD net inflows of $337.31 Bn in 2022.
- 47th month of consecutive net inflows.
- $9.99 Tn invested in the global ETFs industry: 11,281 products, with 23,102 listings, listed on 81 exchanges in 63 countries.
- Assets increased 7.8% YTD in 2023, going from $9.26 Tn at end of 2022 to $9.99 Tn.
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 hear from Ophelia Snyder, Co-Founder & President at 21Shares.
Another survey this time from TrackInsight highlights that:
- Investors’ interest in ETFs remains high despite a slowdown of inflows in 2022 (falling from USD1.2 trillion to USD782 billion). Respectively 56 per cent and 40 per cent of respondents planned to increase their allocation to Equity and Fixed Income ETFs in the next two to three years.
- In Europe, investors mainly mention low fees as the primary motivation to use ETFs. In the Americas, high liquidity and tax efficiency are also two fundamental aspects of ETF popularity.
- Investors are increasingly open to active strategies; the percentage of respondents already using active ETFs is higher than ever, and switching from mutual funds to active ETFs is trending. Nearly 80 per cent of respondents in the Americas stated they would be more inclined to invest in an active strategy if packaged as an ETF rather than a mutual fund.
- Thematic investing for diversification and long-term bet; More than 40 per cent of respondents anticipate an increase in their allocation over the next few years. For the first time, diversification was cited as the primary reason to consider thematic investing, followed closely by strategic allocation.
- Investors continue to consider ESG investing but ask for more transparency. On average, 30 per cent of respondents planned to pour more assets into ESG ETFs in the coming years, driven by Europe-based investors, but they remain cautious about greenwashing issues
The patent that’s given Vanguard an edge over competitors for the past 20 years and helped its clients pull in more than $100 billion worth of additional investment gains has expired. bloomberg
There will be no Bitcoin ETF, says VanEck’s CEO.
Speaking at the recent Bitcoin 2023 conference in Miami Beach, Jan Van Eck delivered a clear verdict: “No chance.” u-today
Movers and Shakers
A new segment to the newsletter from this week focusing on people moves within the industry.
Lida Eslami, the head of ETFs at London Stock Exchange has left after 12 years at the company. No news yet on where she is heading.
Fiona Basset head of ETFs at Deutsche Bank / DWS has announced she is leaving. Taking to LinkedIn she announced she is to leave after 20 years for a “new challenge”.
From behind the Desk
One of the most common themes we hear from the guests on the podcast, is the importance of networking and how crucial it is in developing your career.
Networking is in fact part of your job and something you need to be working on each and every day is what they say.
Becoming more visible, looking to connect with people outside your immediate bubble, being true in your intentions and being interested in what people do were all given as networking tips.