European Insurance ETFs | Nomura overweight insurance sector, bullish on Aviva (AV), Axa (CS), Legal & General (LGEN), Swiss Life (SLW) and Zurich (ZURN)

Latest news

Source and LGIM team up on new fund platform

Source, a leading European exchange-traded fund provider, has appointed Legal & General Investment Management (LGIM), one of Europe’s largest index fund providers, as the investment manager for a new physical ETF platform. Lee Kranefuss, Chairman of Source, commented: “The new platform is all about increasing investor choice. We want to enable our investors to select the structure they prefer and are most comfortable with. Furthermore, having capabilities to launch more physical products will also allow us to target a wider investor base. Over 75% of investor flow since January 2014 has been into physical ETFs, so there is clearly strong demand for this type of replication method.”

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Latest news

ETF Securities increases S&L offerings on LSE ETF Securities broadens range of short & leveraged ETPs

ETF Securities, one of the world’s leading providers of commodity exchange-traded products, has launched a series of short and leveraged (S&L) products on the London Stock Exchange. The new additions include 18 S&L commodity ETPs and six S&L currency ETPs, with leverage of 3x and 5x respectively. “We believe the additional leverage will first and foremost allow investors to use the currency products to hedge currency risk as well provide additional opportunities to trade on a short-term basis with a competitive total cost of ownership,” said Townsend Lansing, Executive Director – Head of S&L and FX Platforms, ETF Securities (UK).

Etho Capital's sustainability ETF offers fossil fuel-free equity exposure Etho Capital’s sustainability ETF offers fossil fuel-free equity exposure

Etho Capital, a US-based sustainable investment manager, has launched the ETHO ETF (ETHO), a broad based, diversified, socially responsible and fossil fuel-free exchange-traded fund with no exposure to the energy sector. Conor Platt, Co-Founder, Chief Executive Officer and Chief Investment Officer of Etho Capital, commented: “Our research shows that investing in climate-efficient companies can yield higher returns. Investors want options that prioritise both profits and the planet, and ETHO is helping fill these needs. The ETHO ETF allows investors to put their money toward supporting the most sustainable, forward-looking companies in the world whose management teams are planning for our climate in a changing, competitive landscape.”

ETF Securities expands currency ETP range BlackRock and WisdomTree plan ‘flexible’ currency-hedged ETFs

BlackRock, the asset manager behind the iShares range of exchange-traded funds, and WisdomTree, a leading provider of currency-hedged ETFs, have announced separate plans to launch a range of ETFs that use adjustable currency hedging techniques. The firms have outlined their plans in documents filed with the US Securities and Exchange Commission to develop funds that expand or contract the level of currency hedging depending on a rules-based methodology that examines the dynamics of the currency in question.

UK high income strategies pay dividends FCA asset management review could favour ETF providers

The Financial Conduct Authority (FCA) has set out to assess if UK asset managers are delivering value in a market study which will be conducted in 2016. The study is likely to cast an unflattering light on some of high-fee arrangements present in the investment industry and should provide a further tailwind to the low-cost passive and exchange-traded funds industry. Christopher Woolard, director of strategy and competition at the FCA, said: “The UK is a world leader in asset management. Our market study aims to ensure that both retail and institutional investors can get value for money when purchasing these services – which we expect to further strengthen the UK’s position as a major centre for asset management.


Russell launches two high dividend yield factor-based ETFs EIP rolls out smart beta ETF based on CLSA quant research

Enhanced Investment Products (EIP), has launched a smart beta exchange traded fund providing exposure to globally listed, Asia Pacific (ex-Japan) stocks with strong dividend yield and growth potential. EIP CEO Tobias Bland said: “EIP is very pleased to launch The GARY ETF which provides investors a unique opportunity to capture growth and yield of globally listed stocks in the Asia-Pacific region (ex-Japan). The GARY ETF is a product for both retail and institutional investors who can benefit from the award-winning analysis of CLSA’s Quant Team and the depth of expertise of the Index provider, CLSA. The GARY ETF is another milestone in the evolution of exchange traded funds in Hong Kong.”


GoldTrust and Purpose Investments laud ETF benefits amid drive for fund conversion GoldTrust and Purpose propose ETF conversion to fend off Sprott

GoldTrust, a Canadian-domiciled gold bullion investment trust, has partnered with Purpose Investments, a Toronto-based asset manager, in proposing the conversion of the trust into an exchange-traded fund managed by Purpose. The trust has written a letter to current unitholders, citing the enhanced benefits of the ETF format, including improved liquidity through dual Canadian- and US-listings, as well as less significant trading deviations from net asset value (NAV). The move is in response to a hostile takeover bid from Sprott Asset Management.

Fixed Income

Source lists Eurozone banks ETF on LSE New Deka ETF tracks quality eurozone government bonds

Deka Investments, a German provider of exchange-traded funds, has launched a new ETF, the Deka Eurozone Rendite Plus 1-10 Bond Index (ELFD GY), offering exposure to the highest yielding eurozone government bonds that possess investment grade status. The fund invests in highly liquid “plain vanilla” government bonds, denominated in euros, and issued by eurozone countries with an outstanding volume of at least €2bn. Constituent countries are required to be classified with ‘investment grade’ status, possessing a minimum rating of BBB- or its equivalent.

Alternatives / Multi-Asset

Amundi switches to FTSE for European real estate ETF First Trust rolls out actively managed prime real estate ETF

First Trust Advisors, a leading provider of exchange-traded funds, has launched an actively managed ETF which aims to provide investors with targeted exposure to US and international real estate securities. The First Trust Heitman Global Prime Real Estate ETF will invest in the shares of publicly-traded companies that own top tier, prime properties in the world’s dominant cities. “This ETF provides a unique tool for investors to gain exposure to an actively managed portfolio of some of the most attractive prime real estate assets around the world, in a way that’s both diversified and liquid,” said Ryan Issakainen, CFA, Senior Vice President, Exchange-Traded Fund Strategist at First Trust.

ETF and Index News

SmartShares rolls out four ETFs on NZX SmartShares rolls out four ETFs on NZX

SmartShares, the exchange-traded fund division of New Zealand Stock Exchange (NZX), has launched four new ETFs, covering a range of local and global bonds, cash equivalents, and New Zealand real estate. Aaron Jenkins, NZX Head of Funds Management, commented: “Today’s listings mark another key milestone in the expansion of Smartshares’ portfolio of ETFs, and signals our continued commitment to developing a vibrant ETF market in New Zealand that provides investors with a range of diverse, low-cost and easily accessible investment options.”