Will ARK be the catalyst for Active ETF growth in Europe?
Sometimes you wait for a bus for ages, and then all of a sudden, two of them come along together.
It felt a bit like that this week in Europe when it was announced ARK Invest was taking over RIZE and then that Robeco would be launching a European ETF business. Both of these are Active managers, so we can assume they will NOT be launching passive products.
All of which begs the question, will ARK be the catalyst that Europe needs to embrace Actively Managed ETFs?
Right now, the thinking of most investors in Europe is that Mutual Funds are for active management and ETFs are for passive management, very black and white.
ARK may change that thinking and if they do, then the ETF industry in Europe will owe them a debt of gratitude (maybe they should start paying them a royalty).
Fund Launches and Updates
RizeETF has been acquired by ARK invest. The deal involves AssetCo selling its 70% equity stake in Rize ETF.
The deal sees AssetCo receive an up-front payment of £2.625m, a deferred payment of the same amount and an earn out provision, capped at £5.25m, which will operate over five years and is subject to a conditional minimum amount.
As part of the deal the firm will launch ETFs for River and Mercantile, a UK based Mutual Fund manager. rize
Dutch asset manager Robeco is to launch an ETF business in Europe and have hired Nick King to lead the business.The firm say they will focus on the The firm will primarily focus on the “nascent” active ETF market. etfstream
HANetf is to merge their Medical Cannabis and Wellness UCITS ETF (CBDX) into the $9m HAN-GINS Indexx Healthcare Megatrends Equal Weight UCITS ETF (WELL) as the product is no longer viable. etfstream
DWS has launched three new fixed income ETFs on Deutsche Börse Xetra that provide investors with ultra-short-duration exposure to bonds from German or eurozone sovereign issuer.
The Xtrackers II Germany Government Bond 0-1 UCITS ETF (XGO1 GY) tracks the iBoxx EUR Germany 0-1 Index and the Xtrackers II Eurozone Government Bond 0-1 UCITS ETF (XEO1 GY) tracks the iBoxx EUR Sovereigns 0-1 Capped Index. etfstrategy
HSBC Asset Management has launched Europe’s first sukuk ETF, providing exposure to Islamic bonds globally. The HSBC Global Sukuk UCITS ETF launched as a new ETF share class of an existing fund that was launched in Jan of this year. investment week
JPMorgan Chase & Co., which manages $119.7 billion in 57 exchange-traded funds, has launched a pair of equity ETFs that tap into rising demand for actively managed funds.
The JPMorgan Global Select Equity ETF (JGLO) and the JPMorgan International Value ETF (JIVE) both launched Sept. 14.
The Global Select Equity ETF, which invests in large cap firms, will seek to beat the benchmark MSCI World Index, while the International Value ETF, which includes investments in emerging markets, will use the MSCI ACWI ex USA Value Index as its benchmark. etf.com
Grayscale has filed paperwork with the SEC on September 19 for a new exchange-traded fund dedicated to ethereum (ETH) futures. The Grayscale Ethereum Futures Trust will hold ethereum futures contracts for the fund. bitcoin.com
BlackRock has announced its plan to launch a series of exchange-traded funds (ETFs) focused on Treasury inflation-protected securities (TIPS).
The move, unveiled on Thursday, aims to address growing investor concerns about the impact of inflation on their purchasing power. The ten new ETFs will be part of BlackRock’s iShares iBonds range and will have maturities ranging from 2024 to 2033. investing.com
Roundhill Investments has expanded its ETF lineup to offer exposure to the fast-growing LNG market.
The Roundhill Alerian LNG ETF (LNGG), listed on NYSE Arca on September 22, provides access to U.S. and international companies materially engaged in the LNG industry. LNGG is the first ETF providing focused exposure to the global LNG market. etftrends
BondBloxx Investment Management has introduced a new ETF that dynamically allocates among the firm’s suite of industry-specific high yield corporate bond ETFs.
The BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA US) has been listed on NYSE Arca with an expense ratio of 0.55% . etfstrategy
Vanguard announced plans to introduce the Vanguard Core Bond ETF (VCRB) and Vanguard Core-Plus Bond ETF (VPLS), two active fixed income ETFs that will be managed by Vanguard Fixed Income Group. Vanguard intends to launch the ETFs at the end of the year. prnewswire
Global X has launched the Cybersecurity ETF (BUGG), which will track the Indxx Cybersecurity Index and target companies that derive more than 50 per cent of their revenue from cyber security activity. This is the 35th listed ETF from Global X on the ASX in Australia.
Meanwhile, VanEck will launch three Australian government bonds on the same exchange: VanEck 1-5 Year Australian Government Bond ETF (1GOV), VanEck 5-10 Year Australian Government Bond ETF (5GOV) and VanEck 10+ Year Australian Government Bond ETF (XGOV).
The ETFs will help investors to target those parts of the yield curve that exhibit the greatest volatility difference, and each will be a portfolio of Australian government and semi-government bonds. moneymanagement
Australian ETF manager Betashares is expanding its range of fixed-income strategies with the launch of two new ETFs providing exposure to U.S. Treasuries.
The Betashares Inflation-Protected U.S. Treasury Bond Currency Hedged ETF started trading on the Australian Securities Exchange on Wednesday, while the Betashares U.S. Treasury Bond 7-10 Year Currency Hedged ETF will list on the Australian bourse next week. ignites
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This week we speak to Ben Fulton, President of Elkhorn Consulting. Listen to him HERE.
Flows into actively managed exchange traded funds (ETFs) outpaced those into their passively managed counterparts last month, data from Morningstar showed, continuing a recent trend that has seen active fund managers close the gap with their index-based peers.
Actively managed exchange traded funds pulled in $9.8 billion in cash from investors last month, compared to $9.5 billion for funds that passively seek to replicate the performance of an index, the data showed. reuters
- The ETF industry in the United States gathered net inflows of $15.37 Bn in August.
- YTD net inflows of $300.04 Bn are the third highest on record, while the highest recorded YTD net inflows are of $594.41 Bn for 2021 and YTD net inflows of $386.21 Bn in 2022.
- 16th month of consecutive net inflows.
- Assets of $7.45 Tn invested in the ETFs industry in the United States in August.
- Assets increased 14.5% YTD in 2023, going from $6.51 Tn at end of 2022 to $7.45 Tn. etfgi
Find out in this webinar what you should consider when launching an exchange-traded fund in Europe. CLICK to sign up.
More predications from folks post the ARK/Rize deal in Europe with some predicting further acquisitions by global asset managers to allow them enter the European ETF market without having to build a brand from scratch. etfstream
Vettafi have announced their plan for ETF Exchange 2024 in Miami on February 11th-14th. Next year’s event will all be about giving advisors a“Blueprint for Growth”, according to Dave Nadig, Financial Futurist at Vettafi. etftrends
More than half of US actively managed mutual funds and ETFs outperformed their average passive counterparts in the 12 months to the end of June, a Morningstar report shows.
The research showed 57 per cent of actively managed funds and ETFs outperformed their passive counterparts, a steep rise from the 43 per cent for the calendar year ended December 2022. FT
Retail usage of ETFs in Europe is expected to grow dramatically over the coming years.
We recently recorded a video with Blackrock to discuss the findings on their Retail ETF survey. It’s a short video, so definitely worth a watch.
Movers and Shakers
Robeco has appointed Nick King from Fidelity to lead its entrance into the European ETF market.
Anthony Caruso has joined Macquarie Asset Management as head of ETF Strategy.
SIX will appoint Bjorn Sibbern global head of exchanges from Nasdaq at the start of next year.
From behind the Desk
For us it was really cool to be involved in bringing together ARK Invest and Rize.
Not only are they a good match strategically, but they are also great people to work with and that matters a lot, as Blackwater’s Founding partner, Michael O’Riordan, posted on LinkedIn “Our goal is to help connect the global ETF community, one deal at a time”