The ETF Distribution model 2.0
COVID has had a profound impact on how the ETF Distribution model works and for the better according to a new report that we recently launched.
It has enhanced the client engagement process, grown the usage of content as a distribution tool, prompted managers to invest in their digital distribution platforms and forced sales teams to adapt and pivot to ever changing client demands.
All of which must be to the benefit of the end investor. Below are our key findings:
- Client engagement has become more multi dimensional but the old fashioned face to face engagement will never be replaced.
- The role of the ETF salesperson has become more demanding and the specialized nature of the role is going to continue.
- Leveraging technology and analyzing sets of data is a key challenge but needs to be mastered to ensure firms better serve clients.
- The usage of online retail trading platforms in Europe and Asia is going to grow but not all ETF managers with benefit from this.
- Having a best in class digital communication strategy is now non-negotiable but will never replace a dedicated ETF sales team.
Fund Launches and Updates
Impact investing platform Circa5000 to enter European ETFs in June with five thematics. The CIRCA5000 Clean Water & Waste UCITS ETF (C5KW), CIRCA5000 Green Energy & Technology UCITS ETF (C5KG), CIRCA5000 Health & Wellbeing UCITS ETF (C5KH), CIRCA5000 Social & Economic Empowerment UCITS ETF (C5KE), CIRCA5000 Sustainable Food & Biodiversity UCITS ETF (C5KF) list on the London Stock Exchange with a TER of 0.49%. ETFstream
AXA Investment Managers will look to enter the European fixed income ETF market before the end of this year, according to its global head of ETF sales Olivier Paquier. ETFstream
HSBC Asset Management has become the first asset manager to offer ETF and unlisted shares within an Ireland-domiciled fund after it converted four global bond index funds to ETFs. The four index funds will be renamed ETFs, as per the regulatory requirements from the Central Bank of Ireland (CBI). The conversions will add $6bn assets under management (AUM) to its fixed income ETF range, making it a top 10 bond issuer in Europe.
The four new ETFs are: HSBC AM Global Government Bond UCITS ETF, HSBC AM Global Corporate Bond UCITS ETF, HSBC AM Global Sustainable Government Bond UCITS ETF, HSBC AM China Government Local Bond UCITS ETF. Yahoo.com
Galaxy Digital eyes UK crypto ETP, but wants regulation first fnlondon.com
WisdomTree has launched Europe’s first California carbon allowance ETP. The WisdomTree California Carbon ETP (WCCA) is listed on the London Stock Exchange and the Borsa Italiana and will list on the Deutsche Boerse on 20 April. WCCA has a TER of 0.49%.
The Goldman Sachs ActiveBeta Paris-Aligned US Large Cap Equity ETF (GPAL) faces delisting because the number of investors has fallen beneath the listing requirement’s threshold. GPAL, has $8.6 million in asset. Etf.com
JPMorgan rolled out the three funds covering short-, intermediate- and long-term Treasury debt, respectively. The JPMorgan BetaBuilders U.S. Treasury Bond 1-3 Year ETF (BBSB), JPMorgan BetaBuilders U.S. Treasury Bond 3-10 Year ETF (BBIB), PMorgan BetaBuilders U.S. Treasury Bond 20+ Year ETF (BBLB) all list on Cboe Global Markets and have expense ratios of 0.07%. yahoo.com
Beacon Capital Management has launched two complementary exchange traded funds on the New York Stock Exchange Arca: the Beacon Tactical Risk (NYSE Arca: BTR) and the Beacon Selective Risk (NYSE Arca: BSR). Both funds have an expense ratio of 1.00%. etftrends
Texas Capital Bank, has applied with the SEC for approval to launch an ETF made up entirely of companies domiciled in the Lone Star State. If approved, the fund will be called the Texas Capital Texas Equity Index Fund ETF (TXS). ETF.com
Barclays Plc is axing nearly half of its US-listed exchange-traded iPath notes a year after revealing a paperwork error tied to its products that cost the bank hundreds of millions of dollars. yahoo.com
Eight Chinese fund firms apply to launch commercial aircraft-themed ETFs tracking the CSI Commercial Aircraft High-End Manufacturing Thematic Index.
The firms are E Fund Management, China Asset Management, China Merchants Fund Management, China Southern Fund Management, Huatai-PineBridge Fund Management, HuaAn Asset Management, Guotai Asset Management and Fullgoal Asset Management.
- Content is king but it needs to resonate with the right audience.
- Wealth Management firm engagement has become more challenging. The cost of doing business is increasing and isn’t feasible for many of the newest entrants.
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US Equity ETFs pull in $10bn in the week whilst Fixed Income gain $4bn. etftrends
Digital investment platforms are set to drive the rapid adoption of exchange traded funds by European investors as more younger investors are turning to neobrokers to open ETF based regular savings plans. FT.com
Breaking into China’s ETF market will be a tough challenge for global fund firms. Foreign entrants will need to quickly build scale and offer differentiated ETF strategies, but suitable conditions might not be ripe for another 10 years, some participants say. ignitesasia
BondBloxx Reaches $1B in Assets, Partners With Macquarie Asset Management. The fixed income specialist reached this milestone one year after listing its first ETFs on the New York Stock Exchange. ETFtrends
From behind the Desk
Coming soon a new short form video series called FindmyFund, where we look under the hood of recent product launches and funds of interest.
Watch this space.