Monday Morning Memo: Review of the European ETF Market, October 2018
October 19, 2018--The promoters of ETFs in Europe enjoyed net inflows for October. Since the inflows were rather small, they couldn't offset the negative performance of the underlying markets, which led to decreased assets under management in the European ETF industry.
In more detail, the assets under management in the European ETF industry decreased from €679.6 bn as of September 30, 2018, to €657.1 bn at the end of October. The decrease of €22.4 bn for October was driven by the performance of the underlying markets (-€23.2 bn), while net sales contributed inflows of €0.7 bn to assets under management in the European ETF segment.
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Source: Detlef Glow, Head of EMEA Research, Lipper
Switzerland Approves to First Crypto Exchange Traded Product
While all eyes are still glued to the Securities and Exchange Commission in the United States to give a verdict on the first Bitcoin ETF, the Swiss regulators have just raced ahead. According to the latest updates coming from Switzerland, the main stock exchange has given a green light to the world's first exchange-traded product tracking multiple cryptocurrencies.
Swiss take the lead in the Bitcoin ETF/ETP race
As the BTC prices hit the lowest point for the year, Swiss regulators took the opportunity to bring some cheer to the market as they announced the world's first cryptocurrency-based exchange-traded product. The Amun Crypto ETP, which will start trading next week on the SIX exchange in Zurich, has been designed to track an index based on the movements of five leading cryptocurrencies.
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Source: coingape.com
ESMA updates its Q&As on MiFID II and MiFIR market structure and transparency topics
November 14, 2018--MiFID-Secondary Markets
The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers regarding market structures and transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
The new Q&As provide clarification on the following topics:
Making data available free of charge 15 minutes after publication (amendment to an existing Q&A);
Obligations applicable to systematic internalisers in non-TOTV instruments;
Definition of RFQ systems;
Pre-trade transparency in RFQ systems;
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Source: ESMA
New Lyxor ETFs on Xetra: Medium and Long-Term US Government Bonds
November 14, 2018--Since Wednesday, two new Exchange Traded Funds from Lyxor International Asset Management are tradable via Xetra and the Börse Frankfurt venue.
The two new bond ETFs give investors the opportunity to participate in the performance of US government bonds.
The US dollar-denominated government bonds have a maturity between five and seven years or a minimum maturity of ten years.
Name: Lyxor Core iBoxx USD Treasuries 7-10Y (DR) UCITS ETF
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Source: Deutsche Börse Group
Amundi bolsters responsible investment range with equity and fixed income ETFs
November 12, 2018--Amundi ETF announces the expansion of its Socially Responsible
Investing (SRI) ETF range to cover both equity and fixed income asset classes.
SRI and consideration of ESG criteria have become mainstream for institutional and retail investors
worldwide.
ESG strategies now account for about a quarter of global assets under management, with close to 25% growth over the past two years.1
Amundi considers responsible investment as one of its four founding pillars.
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Source: Amundi ETF
Monday Morning Memo: Are lower fees leading to more innovation in the European ETF industry?
November 12, 2018--With net inflows of 35.5 billion euros and with not one month of net outflows over the course of 2018 so far (as of September 30), it seems the environment for ETF promoters in Europe is still positive.
Meanwhile, their active counterparts face struggles from the uncertainty in the securities markets. Some market observers would say that ETFs are also having a bad year, since the net inflows for 2018 are far below the net inflows of 2017. Even though that is correct, one needs to remember that not every year can be a record year. It is worthwhile bearing in mind that ETFs might yet enjoy higher inflows for 2018 overall than they did for 2016 or 2014 (two of the five years with the highest net inflows in history), if the current trend for fund flows continues.
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Source: Detlef Glow, Head of EMEA Research, Lipper
New UBS ETFs on Xetra: Bonds of international development banks with currency hedging
November 12, 2018--Since Monday, two new Exchange Traded Funds of the issuer UBS Global Asset Management are tradable on Xetra and the Frankfurt Stock Exchange.
The UBS ETF-Sustainable Development Bank Bonds UCITS ETF (USD) enables investors to participate in the performance of bonds issued by multilateral development banks.
These are internationally active institutions that enable the financing of sustainable projects with a positive social and environmental impact in developing countries.
Investors can choose between a distributing and an accumulating share class
Name: UBS ETF-Sustainable Development Bank Bonds UCITS ETF (USD) A-acc
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Source: Deutsche Börse Group
LGIM finally pushes into the European ETF market
November 10, 2018--Fund manager will have to catch up with rivals that have 10-year head start
Legal & General Investment Management has joined the cut-throat price war raging in the exchange traded funds industry in Europe. Its launch of a range of "core" ETFs belatedly pitches the UK's largest asset manager into battle against US and European rivals, all looking to increase their share of the region’s expanding ETF market.
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Source: FT.com
Three New Xtrackers ETFs on Xetra: International Large Caps with Currency Hedging
November 9, 2018--The Xtrackers S&P 500 UCITS ETF gives investors the opportunity to participate in the performance of the S&P 500 index. The benchmark index comprises the top 500 companies in the US equity market. With the Xtracker Nikkei 225 UCITS ETF, investors can participate in the performance of the Nikkei index.
The benchmark index is composed of the 225 largest stock companies of the Tokyo Stock Exchange, which are reviewed at regular intervals with regard to market liquidity and sector equilibrium. Liquidity takes into account the trading volume and the extent of price fluctuations over the past five years. The Xtrackers iBoxx USD Corporate Bond Yield Plus UCITS ETF enables an investment in corporate bonds denominated in US dollars. The benchmark index largely comprises fixed-income securities with a ranking between BB- and AAA. All three ETFs use a hedging strategy to minimize the exchange rate risk between the currency of the index components and the euro.
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Source: Deutsche Börse Group
After gold price recovery: Rising demand for Xetra-Gold
November 9, 2018--The gold price, which has been rising again since the end of September, has also significantly increased the demand for Xetra-Gold (ISIN: DE000A0S9GB0). The holdings of Europe's leading gold-backed security have exceeded the 180-ton mark.
The assets under custody currently amount to 6.2 billion euros. "The gold price ranged in midsummer for a long time around 1,200 US dollars per troy ounce, a psychologically important mark - because that was the lowest level for almost two years," explains Michael König, Managing Director of Deutsche Börse Commodities GmbH, the issuer of Xetra-Gold. "In recent weeks there has been a clear correction on the stock markets due to emerging geopolitical risks and the return of inflation. As a result, the gold price has also recovered and the demand for gold funds has risen again. We are also experiencing this with Xetra-Gold."
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Source: Deutsche Börse Group
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