The Weekly ETF Roundup: w/e June 5, 2020 - HSBC launches sustainability range
Updated: Jul 20, 2020
European markets were positive last week with an increase in the FTSE 100 of +6.71%, the FTSE 250 +5.55%, Stoxx Europe 600 +5.99% and the DAX* +6.87% (*markets closed Monday). U.S. equities were up +4.56% for the same period.
The CBOE Volatility Index dropped -13.14% for the week and closed Friday at 24.52.
WTI Crude July contracts closed on Friday at $39.55 a barrel, up 11.60% for the week.
HSBC Global Asset Management launched a range of sustainable equity ETFs tracking newly created FTSE Russell indices. The HSBC Europe Sustainable Equity UCITS ETF (HSEU), the HSBC Japan Sustainable Equity UCITS ETF (HSJD) and the HSBC USA Sustainable Equity UCITS ETF (HSUD) are listed on the London Stock Exchange with total expense ratios ranging between 0.12% and 0.18%. Source: ETF Stream
Vanguard launched a new ETF providing exposure to large and mid-sized companies worldwide with an above-average dividend yield. The Vanguard FTSE All-World High Dividend Yield UCITS ETF (Acc) is tradable on Xetra and Borse Frankfurt.
Amundi has expanded its responsible ETF range with a series of eight new equity-focused strategies. The Luxembourg-domiciled funds are:
· Amundi MSCI World ESG Universal Select Ucits ETF DR
· Amundi MSCI World ESG Leaders Select Ucits ETF DR
· Amundi MSCI EMU ESG Universal Select Ucits ETF DR
· Amundi Index MSCI EMU SRI Ucits ETF DR
· Amundi MSCI Europe ESG Universal Select Ucits ETF DR
· Amundi MSCI Europe ESG Leaders Select Ucits ETF DR
· Amundi MSCI USA ESG Universal Select Ucits ETF DR
· Amundi MSCI USA ESG Leaders Select Ucits ETF DR
Fidelity International has launched a trio of new sustainable ETFs, which are designed to offer low-cost access to global, US and European equity markets. The new funds all fall under the banner of Fidelity Sustainable Research Enhanced Equity ETF, while having an on-going fee charge of 0.30% for the US and Europe funds, while it is 0.35% for the global fund. The three funds are initially listed on the London Stock Exchange and the Deutsche Börse Xetra. Source: Citywire
Flows and Performance:
Gold ETCs have seen huge inflows this year. According to data from Ultumus, the iShares Physical Gold ETC (SGLN) saw $676m inflows in the week to 29 May, the most across all European-listed ETPs. Close behind was the Invesco Physical Gold ETC (SGLD) which saw the third-highest inflows of the week with $273m while the Xtrackers Physical Gold ETC EUR (XAD5) took in $91m.
As a result of the big inflows, a price war has also developed with ETF issuers looking to offer investors the cheapest exposure to the precious metal. This was started by Invesco, which slashed its fees to 0.19% matching BlackRock’s SGLN, before Amundi went one step further just weeks later with a four basis point cut taking its Physical Gold ETC (GOLD) to 0.15%. Source: ETF Stream
EMQQ - The best-performing emerging markets ETF year-to-date and over the past year shows no sign of holding back. And while the ongoing coronavirus epidemic has punished many EM equity funds, this fund is positively fizzing. The fund in question is the EMQQ Emerging Market Internet and Ecommerce ETF, which trades on the NYSE, and in Europe on the LSE, Borsa Italiana, Xetra and SIX Swiss Exchange. The fund is up 39.0% over one year and 15.7% year-to-date. This compares to -4.0% and -14.4% for ETFs liked to the MSCI Emerging Markets Investable Market Index. Source: ETF Strategy
And although not locally traded here, the story of JETS was everywhere last week. Millennials are being credited with boosting the airline ETF past $1 billion. The US Global Jets ETF, ticker JETS, posted its 64th consecutive day of inflows on Tuesday as of last week. That's a surge of nearly 3,000% in just three months - in early March, the fund held only $33 million. Year to date JETS is down -36.93%. Source: Bloomberg
Most London traders want to trim the world's longest stock market hours. A London Stock Exchange survey of more than 140 market participants conducted by the London Stock Exchange showed that most favour a shorter day, noting it could improve liquidity and industry diversity. The LSE says any change would need a unified approach across European bourses and other trading venues. At 8 1/2-hours, the European day is two hours longer than in the U.S. Source: Bloomberg
Fund Performance and Flows (data sourced from ETFLogic):
Top 3 Best Weekly Performers in the UK
WisdomTree Brent Crude Oil +16.86%
Lyxor S&P 500 Banks UCITS ETF +16.81%
WisdomTree WTI Crude Oil Pre-Roll +16.21%
Top 3 Worst Weekly Performers in the UK
Xtrackers Physical Rhodium ETC -9.18%
iShares USD Treasury Bond 20+Yr UCITS ETF USD -5.66%
iShares USD Treasury Bond 20+Yr UCITS ETF EUR Hedged -5.57%
Top 3 Weekly UK Inflows
PIMCO US Dollar Short Maturity UCITS $451.9m
iShares US Aggregate Bond UCITS ETF USD $198.6m
iShares USD Corp Bond UCITS ETF USD (Acc) $175.1m
Top 3 Weekly UK Outflows
iShares Core MSCI World UCITS ETF GBP Hedged -$246.0m
iShares Treasury Bond 0-1yr UCITS ETF USD -$129.6m
iShares Physical Gold ETC -$114.8m