Europe ETFs enjoy inflows despite market turmoil
It has been a busy week of ETF launches and fund updates in Europe along with a full summary of the various implications to funds, exchanges and indices related to Russia.
Fund Launches and Updates
BlackRock is set to start fully replicating the underlying index on the iShares Edge MSCI USA Momentum Factor UCITS ETF (IUMF) and iShares MSCI EM Consumer Growth UCITS ETF (CEMG). Link
Credit Suisse Asset Management has listed the CSIF MSCI USA Tech 125 ESG Universal Blue UCITS ETF (CYSU) on Deutsche Boerse, SIX Swiss Exchange and Borsa Italiana with a total expense ratio of 0.18%. Link
DWS has launched the Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF (XNZE) and the Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF (XNZW), TER of 0.15% and 0.19% respectively. Both ETFs are listed on the Deutsche Boerse with listings on the London Stock Exchange and Borsa Italiana to follow. Link
Franklin LibertyQ U.S. Equity UCITS ETF (FLXU) has switched from tracking the Franklin LibertyQ US Large Cap Equity index to the Franklin US Equity index. Link
HANetf listed the following three ETFs on Euronext Paris: Procure Space UCITS ETF (YODA), ETC Group Digital Assets and Blockchain Equity UCITS ETF (KOIN), and U.S. Global Jets UCITS ETF (JETS).
WisdomTree launched the following 4 ETPs: WisdomTree STOXX Europe Travel & Leisure 2x Daily Leveraged, WisdomTree STOXX Europe Travel & Leisure 2x Daily Short, WisdomTree STOXX Europe Automobiles 2x Daily Leveraged, and the WisdomTree STOXX Europe Oil & Gas 2x Daily Short ETP.
The funds listed on the London Stock Exchange, Borsa Italiana and Borse Xetra as of 2 March, and have management expense ratios of between 0.80% and 0.85%. Link
In Canada, BMO Investments Inc. launched ETF Series units of BMO Brookfield Global Real Estate Tech Fund (Ticker: TOWR) and BMO Brookfield Global Renewables Infrastructure Fund (Ticker: GRNI) on the Toronto Stock Exchange. Link
In the U.S., more household name firms embrace the digital assets ETF world as Charles Schwab files the Schwab Crypto Economy ETF with the SEC.
The fund, if launched, will invest in stocks in the bespoke Schwab Crypto Economy index without investing directly in cryptocurrency itself and will hold the “essential nuts and bolts” of the cryptocurrency industry. Link
Flows and Trading Volume
$12.4 billion in assets were invested in 100 crypto ETFs/ ETPs listed globally at the end of January. XBT Provider is the largest ETP provider in terms of assets with $3.1 billion, or a 25% market share and 21Shares is second with $1.7 billion and a 14% share. Link
In the U.S., kicked off with various creation halts from the ETF issuerson the iShares MSCI Russia ETF (ERUS), the VanEck Russia Small-Cap ETF (RSXJ), the Franklin FTSE Russia ETF (FLRU).
By Friday afternoon, 4 March, trading in these Russia-related ETFs as well as the VanEck Russia ETF (RSX) were halted indefinitely by the NYSE Arca and CBOE BZX exchanges.
The Direxion Daily Russia 2X Shares ETF (RUSL) was also halted and has plans for official closure on 11 March. And although not directly tied to Russia equity names, Ukraine is one of the largest wheat producers globally and this week, the $387m Teucrium Wheat ETF (WEAT) suspended creations Monday morning (6 March). Link
Stoxx, the operator of Deutsche Börse’s Qontigo indices, was one of the first to remove 61 Russian companies from its indices.
The list includes most leading Russian companies, such as Gazprom, Lukoil, Sberbank, Rusal and Aeroflot. Link
21Shares’ Moessler: More education needed in crypto ETP space. Link
Vanguard tightens grip on $6.8 Trillion ETF world. Link
Demand for ESG ETFs is being driven by younger investors, specifically those with self-directed accounts. Link
Watchdogs divide over opening up retail risk of crypto funds. Link