Tabula Enters the ESG Arena
Updated: Feb 28
This is a weekly newsletter of what we have seen in the world of ETFs and thought was interesting. If you like what you read, feel free to spread it around.
Fund Launches and Updates
GSAM has cut the fee on its Goldman Sachs Access China Government Bond UCITS ETF by a third. The new TER is 0.24%. Link
HANetf is set to close the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) after the strategy failed to gather significant assets. Initially launched in April 2019, KUW8’s last day of trading on European stock exchanges will be 25 January with the ETF officially terminating on 8 February. Link
HSBC Global Asset Management has halved the fee on the HSBC MSCI China UCITS ETF (HMCH) from 0.60% to 0.30%. Launched in January 2011, it currently has $683m assets under management. Link
Invesco expanded its MSCI universal ESG ETF range with the launch of two strategies focused on Japanese and Pacific ex-Japan equities. Link
KraneShares has expanded its European ETF range with the launch of a China healthcare range. The KraneShares MSCI All China Health Care Index UCITS ETF (KURE) is listed on the London Stock Exchange with a TER of 0.65%. Link
Tabula Investment Management has entered the ESG arena with the launch of Europe’s first investment grade bond climate change ETF. The Tabula EUR IG Bond Paris-aligned Climate UCITS ETF (TABC) is listed on Deutsche Boerse with an OCF of 0.25%. Link
Vanguard is closing all of its London-listed factor ETFs due to "insufficient demand". The four ETFs had a combined $360m (£264m) in assets under management as of 14 January, and will stop trading on 23 February at 2pm. Link
In the U.S., Capital Group has hired a BlackRock veteran to jump start the launch of its ETF group. BlackRock’s Holly Framsted will join Capital Group in March to lead the firm’s foray into the actively managed ETF market. The firm plans to launch both equity and fixed income ETF strategies in early 2022. Link
Ark Investment Management is planning to launch the ARK Space Exploration ETF (ticker ARKX), according to a SEC filing. The once-niche firm now oversees about $41.5 billion in ETF products, compared with less than $3.5 billion in the same period in 2020. Bloomberg Link
Morningstar reported that European ETFs closed 2020 breaking through the EUR1 trillion barrier in assets. Inflows in the fourth quarter amounted to EUR44.4 billion, pushing the total for the year to EUR102.7 billion.
Environmental, social, and governance ETFs were the big winners in the fourth quarter, netting EUR20.8 billion of inflows. Flows into equity ETFs accelerated strongly in the fourth quarter to EUR38.3 billion and totalled EUR53.3 billion in 2020. Link
Global ETF assets are now at an all-time high of $8tn. Investors worldwide allocated $762.9bn into ETFs last year, up 34 per cent on the net inflows of $569bn registered in 2019. FT Link
BTCetc Bitcoin Exchange Traded Crypto (BTCE) has recorded average daily trading amounting to €57m in the first 11 days of January, according to data from Deutsche Börse. A similar trend has taken hold on Wall Street -- Grayscale’s Bitcoin Trust has posted average daily turnover of almost $1bn in the first two weeks of this year. FT Link
More than one in 20 exchange traded funds were axed last year as surging inflows failed to lift all boats, but issuers’ enthusiasm for new launches remained undimmed. Worldwide, a record 297 ETFs were shuttered during 2020 but new launches comfortably outpaced closures, with the number of ETFs rising by 318 to 6,518 last year. FT Link
Nancy Davis of Quadratic Capital Management LLC offered a glimpse of the future when she pivoted from her hedge fund to launch an ETF in 2019. Launched in May 2019, the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) has become a breakout hit as assets have jumped to more than $1 billion. Bloomberg Link
Vanguard’s assets under management have surged beyond the $7tn mark for the first time after the investment industry’s fiercest price competitor attracted net cash inflows of $186bn last year. Investors poured a record $210bn last year into Vanguard’s exchange traded fund arm, which secured more than a quarter of the ETF industry’s entire global cash inflows in 2020. FT Link
JPMorgan Asset Management, its Shanghai-based joint venture, China International Fund Management, and investment platform Snowball Finance, have published a survey of the current ETF landscape in China. The survey found that the rising awareness of fund allocation is driving the development of ETFs, making ETFs more popular among individual investors. Link
London Stock Exchange Group confirms that the European Commission has conditionally approved its proposed all share acquisition of Refinitiv. Link
The best-performing actively managed equity fund in 2020 was the Ark Genomic Revolution ETF, which returned 180 per cent. Several other actively managed ETFs from Ark also appear in the top 20, including products investing in renewable energy and technology. FT Link
Fund in Focus
With a lot of press focused on innovation themed ETFs and the obvious subject of healthcare, this week’s fund in focus is the L&G Healthcare Breakthrough UCITS ETF which tracks the performance of companies that are actively engaged in the healthcare technology value-chain. Launched in July 2019, the ETF has reached $115.8M in AUM, TER 0.49%. Year-to-date the returns are up 7.03% and last year enjoyed a return of 66.94%.
In case you missed it…
Normally pro tennis players relish the chance to fly to Melbourne to escape winter in the northern hemisphere to compete in the Australian open. Not this year. Almost 50 of them are contained to their hotel rooms, quarantined after a few passengers on their chartered flights tested positive for COVID-19. Stuck inside for 14 days, they’ll have to wait to enjoy the warm sunshine weather with little time to train before the tournament begins in early February. As if it wasn’t bad enough, apparently the hotel food they are getting makes airplane food look appetising. Crickey!
Thank you for reading and have a great week!