The First Europe-Listed Metaverse ETF Set to Launch
A busy week of ETF launches and fund updates in Europe including news that ETC Group and new entrant Roundhill have plans to launch Europe’s first metaverse-themed ETF.
Fund Launches and Updates
More index switching to ESG as BlackRock announced the proposal to change the index on the €1.4bn iShares € Corp Bond ex-Financials 1-5yr UCUTS ETF (EUNS) and the €1.4bn iShares € Corp Bond ex-Financials UCITS ETF (EEXF) to indices that track ESG metrics. Link
In a recent market announcement, both BlackRock and DWS have agreed to waive the total expense ratios on their suspended Russia-focused ETFs. Funds impacted are the iShares MSCI Russia ADR/GDR UCITS ETF (CSRU), the iShares MSCI Eastern Europe Capped UCITS ETF (IEER), and the Xtrackers MSCI Russia Capped Swap UCITS ETF (XMRC). Link
CoinShares announced the launch of a physically-backed Cardano ETP designed to share the rewards of staking with investors. The CoinShares Physical Staked Cardano will be listed on Germany’s main market Xetra and is the third ETP launched by CoinShares this year. Link
More fee slashing as DWS reduced fees on the €2.5bn Xtrackers IE Physical Gold ETC Securities (XGDU) from 0.15% to 0.12%; the Xtrackers II Eurozone Inflation-Linked Bonds UCITS ETF (XEIN) from 0.20% to 0.15%; and the Xtrackers II Harvest China Government Bond UCITS ETF (CGB) from 0.35% to 0.20%. Link
Global X has rapidly been launching new products this year and is now the most ETF issuer to enter the cryptocurrency ETP market. Last week, the Global X Bitcoin ETN (BT0X) and the Global X Ether ETN (ET0X) listed on Deutsche Boerse with TERs of 0.65%. Link
A tight race for the first metaverse themed ETF in Europe as ETC Group and HANetf were first to announce their new Metaverse ETF last week. The ETF will track the Solactive ETC Group Global Metaverse Index and will list on the London Stock Exchange.
Effective 20 May, JP Morgan Asset Management plans to merge the $47m Global Emerging Markets Research Enhanced Index Equity fund with the $686m JP Morgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF (JREM). Link
More U.S. based issuers expanding across the pond as Roundhill, is set to enter the European market with the Roundhill Ball Metaverse UCITS ETF (METV) later this month. The ETF will be listed on the Deutsche Boerse with a total expense ratio of 0.59%. Link
State Street Global Advisors has launched four new Paris-aligned ESG ETFs. The SPDR MSCI Europe Climate Paris Aligned UCITS ETF (SEPA), the SPDR MSCI USA Climate Paris Aligned UCITS ETF (SPUD) are both listed on Deutsche Boerse, Borsa Italiana and the London Stock Exchange while the SPDR MSCI World Climate Paris Aligned UCITS ETF (SWPA) is also listed on Euronext Amsterdam. The fourth new ETF, the SPDR MSCI Japan Climate Aligned UCITS ETF (SPF6), is listed on the Deutsche Boerse. TERs range from 0.12% to 0.15%. Link
In Canada, ETF issuer Evolve has launched the Evolve Enhanced FANGMA Index ETF (TECE) which attempts to provide 125% of the daily performance of the Solactive FANGMA Equal Weight Index. The index is made of just the six FANGMA stocks, equally weighted. Expense ratio is 0.50%. Link
In the U.S., DoubleLine Capital, Jeffrey Gundlach’s $137bn asset management firm, has received approval from the SEC to launch two active non-transparent ETFs. The company initially filed for the strategies – the DoubleLine Opportunistic Bond ETF and the DoubleLine Shiller CAPE US Equities ETF – in October 2021. The funds have expense ratios of 0.5% and 0.65%, respectively. Link
Exchange Traded Concepts is planning to launch an index-tracking ETF that targets NFT companies. The ETF, which tracks a Fount Investment Company index, is designed to track the performance of businesses that develop, manufacture, distribute or sell products or services in token technology subindustries. Link
VanEck recently launched the Digital Assets Mining ETF (DAM) which focuses on companies involved in the crypto asset mining industry. The fund has a net expense ratio of 0.5%. Link
Full List of U.S. ETF Launches:
Flows and Trading Volume
Following a strong start to 2022, investors have pulled more than $2bn out of European equity market ETFs and pumped it into commodities up through the second half of February. In contrast, while flows into US equity ETFs started off the year muted, they have remained positive with a small net inflow of $200mn in the second half of February. Unsurprisingly, this can be attributed to the negative impact on European equity exposure due to its proximity to the Ukraine/Russia crisis compared to that of the U.S.
So far this year, broad commodity ETPs have attracted a net $6.8bn, a marked rise in the pace of buying from 2021. Gold ETPs have seen inflows of $5.1bn, a sharp reversal from the net outflows of $9.9bn witnessed last year. Link
According to an interview with Financial News, Global X has a target to triple assets in Europe and reach $1bn by middle of the year. Their aggressive push with recent launches can certainly help make that happen but as many know, it’s not the easiest task getting to a large target, never mind $100m. In Europe, they are currently at 25 ETFs including their newest crypto products and have over $300m in AUM. In the U.S., Global X is within the top 20 issuer list with an impressive $44bn in assets.
Global X first entered the U.S. market in 2009 and expanded their business to Europe in December 2020. Link
Last week, SIX Swiss became the last European exchange to halt trading on Russia ETFs. Effective 8 March, SIX suspended trading on several Russia ETFs until further notice and follows moves made by Euronext, Borsa Italiana, Deutsche Boerse and the London Stock Exchange last Friday. The latest suspension means Russia-focused ETFs are now only trading over-the-counter in Europe. Link
Suspensions at all levels of global markets have left Russia ETF investors in limbo. Link
Industry participants weigh the merits of applying an indexing approach to crypto exposures. Link
An overview of fee compression for US listed ETFs. Link
An ETF in Tokyo looks like last place to make Russia stock bets. Link
WEAT price soars at a premium to underlying value. Link
Disclosure: This newsletter consists of curated articles which we have read across the globe and while we can’t include every ETF related news item, we would like to hear your thoughts on something we may have missed that you feel is important. All information is sourced from 3rd party media outlets, not our own material and should also not be viewed as financial advice.