Monday Morning Memo: Review of the European ETF Market, March 2018
April 16, 2018--Despite the promoters of ETFs in Europe enjoying net inflows for March, the assets under management in the European ETF industry (€628.3 bn) decreased, down from €632.2 bn at the end of February 2018. The decrease of €3.9 bn for March was driven by the performance of the underlying markets (-€4.7 bn), while net sales (+€0.8 bn) contributed positive results to the assets under management in the ETF segment.
With regard to the overall number of products, it was not surprising that equity funds (€451.8 bn) held the majority of the assets, followed by bond funds (€146.2 bn), commodity products (€19.3 bn), "other" funds (€6.6 bn), money market funds (€3.4 bn), mixed-asset funds (€0.7 bn), and alternative UCITS products (€0.3 bn).
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Source: Detlef Glow, Head of EMEA Research-Thomson Reuters Lippe
ECB asks Deutsche Bank to gauge investment banking exit costs: source
April 15, 2018--- Deutsche Bank (DBKGn.DE) has been asked by European Central Bank supervisors to calculate the potential costs of winding down its investment banking operations, a source told Reuters on Sunday.
Germany's biggest lender has been calculating the financial effects of a potential move to quit investment banking for some time, and the move is not related to the switch in Deutsche Bank's top management position last Sunday when retail banking expert Christian Sewing was appointed to replace chief executive John Cryan.
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Source: Reuters
ITI Funds cross-lists two Russia ETFs on MOEX
April 15, 2018--ITI Funds, the ETF issuing arm of emerging markets specialist Da Vinci Capital Management, has cross-listed two of its Russia focused ETFs on Moscow Stock Exchange (MOEX). The two ETFs-an equity fund and a bond fund-were first listed on London Stock Exchange on 22 February of this year.
The ITI Funds RTS Equity UCITS ETF uses physical replication to track the RTS Index-Russia's oldest and most widely used equity index for equity securities traded on MOEX. The index is currently composed of 45 equity securities of Russia's top companies by market cap and liquidity.
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Source: etfstrategy.co.uk
Tradeweb European Exchange-Traded Funds Update-March 2018
April 13, 2018--The following data is derived from trading activity on the Tradeweb European-listed ETF platform.
ETF total traded volume
The Tradeweb European-listed ETF marketplace maintained momentum in March amid market concerns over global trade disputes, technology stock pressures, and the wind-down of accommodative monetary policies. Monthly activity reached €18.43 billion, the platform's third best performance since its launch in October 2012.
The share of European ETF transactions processed via Tradeweb's Automated Intelligent Execution tool (AiEX) increased to 37.2%.
Adriano Pace, managing director for equity derivatives at Tradeweb, said: "March was another strong month for European ETF trading on Tradeweb, and marked the end of a record-breaking quarter. Notional volume in the first three months of 2018 was just shy of €62.3 billion, up 38% year on year."
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Source: Tradeweb
New iSharesETFs with access to high yield corporate bonds launched on Xetra
April 13, 2018--Two new exchange traded funds issued by iShares have been tradable on Xetra and Börse Frankfurt since Friday.
The iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) enables investors to access the most liquid, US dollar-denominated corporate bonds from companies in industrialised countries.
The bonds must have a sub-investment grade rating as well as a minimum term of one and a half and a maximum of fifteen years to be included in the reference index. The reference index components are weighted according to their market capitalisation. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the US dollar and the euro.
The iShares Fallen Angels High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) offers investors access to the performance of high-yield corporate bonds that have been downgraded to a sub-investment grade rating. The bonds can be fixed or floating rate and must have a minimum term of one year. The reference index components are weighted according to their market capitalisation and are issuer-capped at 3 percent. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the underlying portfolio currency and the euro.
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Source: Deutsche Börse Cash Markets
Boerse Stuttgart subsidiary brings cryptocurrency trading to the mass market
April 13, 2018--Sowa Labs presents prototype of BISON app/Available free of charge from autumn
Free, uncomplicated and secure trading in cryptocurrencies from your own smartphone: this is what BISON promises to make available to traders.
The new app from fintech Sowa Labs-a subsidiary of Boerse Stuttgart Digital Ventures-gives traders an easy entry into the world of cryptocurrencies. Dr Ulli Spankowski, Managing Director at Sowa Labs, commented: 'BISON makes trading in digital currencies easy. It is the first crypto app in the world to have a traditional stock exchange behind it.' The startup will today present the prototype of the app at the finance and investment trade fair Invest in Stuttgart. BISON will be available free of charge from the autumn of this year.
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Source: Boerse Stuttgart
Neue iShares-ETFs mit Zugang zu High Yield-Unternehmensanleihen auf Xetra gestartet
13. Apr 2018--Seit Freitag sind zwei neue Exchange Traded Funds des Emittenten iShares über Xetra und Börse Frankfurt handelbar.
Mit dem iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) erhalten Anleger Zugang zu den liquidesten, auf US-Dollar lautenden Unternehmensanleihen aus Industrieländern.
Die Anleihen müssen ein Rating unterhalb von Investment Grade sowie eine Laufzeit von mindestens eineinhalb und höchstens 15 Jahren aufweisen, um in den Referenzindex aufgenommen zu werden. Die Gewichtung des Referenzindex erfolgt anhand der Marktkapitalisierung der einzelnen Indexbestandteile. Zur Absicherung des Wechselkursrisikos zwischen US-Dollar und Euro verwendet diese ETF-Anteilsklasse eine Absicherungsstrategie.
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Source: Deutsche Börse Cash Markets
London Stock Exchange Group appoints Goldman's Schwimmer as CEO
April 13, 2018--London Stock Exchange Group Plc said it appointed Goldman Sachs' David Schwimmer as chief executive officer effective Aug. 1.
Schwimmer has been with Goldman for 20 years and most recently served as global head of market structure and global head of metals and mining in investment banking.
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Source: Reuters
DWS cuts fees for EUR cash and US Treasuries Xtrackers -ETFs as assets under management increase
April 12, 2018-DWS has further increased the competitiveness of its Xtrackers range by cutting the annual management charges on its EUR cash and US Treasuries fixed income ETFs.
The fee cuts, as outlined in the table below, come as assets continue to flow into fixed income products, with government bond Xtrackers ETFs receiving around EUR 1 billion in new investments year-to-date[1].
The Xtrackers US Treasuries ETF range provides exposure to US government bonds-nominal bonds across the yield curve, including short duration (one to three-year focus) and inflation-linked exposures.
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Source: DWS
New iShares ETF on the EURO STOXX 50 ex-Financials Index launched on Xetra
April 12, 2018--ETF offers access to the 50 largest euro zone companies excluding the financial sector
A new exchange traded fund (ETF) issued by iShares has been tradable on Xetra and Börse Frankfurt since Thursday.
The equity index ETF offers investors the opportunity to participate in the performance of the 50 largest stock corporations in the euro zone, excluding companies belonging to the financial sector. The stock corporations are selected based on market capitalisation, liquidity and sector relevance. The reference index currently comprises stock corporations from eleven different euro zone countries.
Name: iShares EURO STOXX 50 ex-Financials UCITS ETF EUR (Dist)
Asset class: equity index ETF
ISIN: IE00BDZVHF28
Ongoing charges: 0.20 percent
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Source: Deutsche Börse Cash Markets
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