Euronext London debuts ETF listing capability

Latest news

Euronext debuts London ETF platform with Lyxor launch

Pan-European exchange Euronext has extended its exchange-traded fund listing and trading capabilities to London, giving ETF issuers access to UK investors while continuing to benefit from Euronext’s trading and distribution network. The first ETFs to list on Euronext London this morning were the Lyxor FTSE EPRA/NAREIT Global Developed UCITS ETF and the Lyxor Euro Stoxx Banks UCITS ETF. “London is an important ETF market and the UK distribution network is increasingly valuable mainly thanks to the Retail Distribution Review which is now starting to facilitate ETF penetration among the retail community,” said Lee Hodgkinson, Head of Markets & Global Sales and CEO Euronext London.

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Latest news

First Trust cross-lists three thematic ETFs on Mexico’s Exchange First Trust cross-lists thematic ETFs to Mexican Bourse

First Trust Advisors, a global exchange-traded fund provider and asset manager has cross-listed the First Trust NASDAQ ABA Community Bank Index Fund (QABA), the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) and the First Trust Nasdaq Cybersecurity ETF (CIBR) on the Bolsa Mexicana de Valores. These ETFs present an opportunity for Mexican investors to access niche sectors of the economy while diversifying risk and maintaining lower costs than traditional mutual funds.

Chinese fundamentals improving, says ETF provider Source China fundamentals improving, says ETF provider Source

Positive first quarter economic data from China suggests the market is set to once again find favour with investors in 2016, according to exchange-traded funds provider Source. Investment spending has grown 10.7% year-on-year to March 2016, while industrial production rose 6.8% and retail sales climbed 10.5% in the same time period. Aggregate financing also rose to CNY6.5tn in Q1, up from CNY4.6tn a year ago. This is perhaps the best indication that local financial institutions believe the economy will expand over the medium term. However, the sharp increase in aggregate financing may also be viewed negatively by some investors who perceive it as further increasing China’s already ballooned debt pile.

iShares launches sustainable MSCI global impact ETF iShares launches sustainable MSCI global impact ETF

iShares has expanded its suite of socially responsible exchange-traded funds with a new fund targeting global companies that enable positive social and environmental change. Martin Small, Managing Director and Head of US iShares, said : “The iShares Sustainable MSCI Global Impact ETF provides an easy way for investors to gain exposure to companies that have a record of positive environmental and social impact, and further strengthens our suite of socially responsible ETFs. These ETFs in particular are seeking to meet growing demand from investors who are looking to have a positive impact and seek global equity market returns.”

Clean energy ETFs | The ‘green’ Kondratieff – a new long-term cycle of economic growth FTSE Russell launches green index

Global index provider FTSE Russell has launched a new index reducing investor exposure to fossil fuel companies while increasing exposure to companies with green revenues. The FTSE Divest-Invest Developed 200 index is launched on the back of the provider’s new LCE green investment data model. The new index is made up from the largest 200 companies in the FTSE Developed All-Cap Index. Constituents that are not eligible for inclusion are categorised under Industrial Classification Benchmark (ICB) sectors and sub-sectors – they include, oil and gas producers, oil equipment services and distribution providers, and coal and general mining.

Equities

Deutsche expands multifactor ETF suite with EM equities fund Deutsche launches smart beta EM equities ETF

Exchange-traded fund provider Deutsche Asset Management has launched the Deutsche X-trackers FTSE Emerging Comprehensive Factor ETF (DEMG), which provides exposure to emerging market companies that have demonstrated relatively strong exposure to factors such as value, momentum, quality, low volatility and size. The ETF is the latest multifactor fund from the provider and will track the FTSE Emerging Comprehensive Factor Index. The ETF’s total expense ratio is 0.50%. Fiona Bassett, Head of Passive in the Americas, said in a statement: “Emerging market equities may be an interesting opportunity for diversification or growth.”

Commodities

Tightening emission standards to support platinum group metals, says ETF Securities Emissions regulations will support platinum & palladium, says ETF Securities

Increased regulation around NOx emissions from motor vehicles is expected to support the prices of platinum group metals (especially platinum and palladium) in 2016 by boosting demand for catalytic converters, according to commodity-based exchange-traded product provider ETF Securities. Nitesh Shah, Director – Commodities Strategist at ETF Securities, says that significant legislation being enacted across Europe, the US and emerging markets such as India is predicted to boost sales in catalytic converters, which use platinum and palladium as key components. Furthermore, prices are expected to be supported by constraints on the supply side of the market.

Fixed Income

Massimo-Siano-ETF-Securities ETF Securities and Lombard Odier cross list smart beta fixed income ETFs on Borsa Italiana

ETF Securities and Lombard Odier Investment Managers have cross-listed four fundamentally weighted fixed income exchange-traded funds on Borsa Italiana. This is the first time that smart beta bond exposure has been available to Italian investors in an ETF wrapper. Massimo Siano, Head of Southern Europe, ETF Securities, said: “We’re very pleased to be listing these ETFs on the Borsa Italiana. Italy is an important growth market for us and we are fully committed to making our products accessible to all investor types.” The co-branded ETFs were launched on the London and Swiss stock exchanges last year, and have collectively amassed over $225m in AUM.

Alternatives / Multi-Asset

Mark Browne Securing wealth with ETFs

Secure Wealth Management was set up seven years ago by managing director James Dougall with the initial aim of being a full service wealth advisory business for the Asia-Pacific region. The company now services investors globally, excluding the US. Originally from a risk management background he saw an opening in the market post-Lehman for transparent investment with ETFs. He was subsequently joined by Mark Browne (pictured), who with the rest of the team, helped take the business into the global B2B discretionary space for private clients and institutional investors. It now offers five managed portfolios made up from ETFs and has assets under management of $150m. ETF Strategy talks to Mark Browne about why they use ETFs, their investment strategy and how they pick ETFs.

ETF and Index News

Expansion of FTSE4Good with launch of FTSE4Good ASEAN 5 Index FTSE Russell adds to its ESG FTSE4Good Indices

Global index provider FTSE Russell has launched the FTSE4Good ASEAN 5 Index, adding to its existing FTSE4Good family of environmental, social and corporate governance (ESG) themed indices. The new index tracks the performance of companies listed on the five ASEAN (Association of South East Asian Nations) exchanges: Singapore, Indonesia, Malaysia, Philippines and Thailand. Using FTSE Russell’s ESG ratings methodology, companies are assessed on over 300 indicators, both qualitative and quantitative, covering 14 themes. The FTSE4Good Index Series is designed to help investors integrate ESG factors into their investment decisions. The indices identify companies that better manage ESG risks and can be used as a basis for tracker funds, exchange-traded funds, structured products and as performance benchmarks.