Lyxor has launched two new multi-factor smart beta ETFs, providing exposure to US and UK equities, that give investors exposure to the quality, low volatility and high dividend factors. Each fund has a total expense ratio of 0.19%, pricing the funds as some of the lowest cost income-based ETF strategies available in Europe. Adam Laird, head of ETF strategy, Northern Europe, Lyxor, commented: “Particularly in this environment of low yields, the lower charges on ETFs mean more of the dividend goes to the investor.”

Index provider Stoxx has announced changes to the Stoxx Europe 50 Index, a blue-chip index of European mega-cap stocks. Effective 8 August 2016, Credit Suisse and Deutsche Bank, two of Europe’s biggest banks, will be relegated from the index and replaced by Dutch technology firm ASML and French concessions and construction company Vinci. The move is set to prompt buying and selling activity amongst a range of exchange traded funds that currently track the index, such as the €600m iShares STOXX Europe 50 UCITS ETF.

Inverse and leveraged exchange-traded fund provider Direxion has launched two new ETFs offering 2x leveraged exposure to European financials and single inverse exposure to gold miners. The Direxion Daily European Financials Bull 2X Shares (NYSE Arca: EUFL) seeks to achieve 200% of the daily performance of the MSCI Europe Financials Index, while the Direxion Daily Gold Miners Index Bear 1X Shares (NYSE Arca: MELT) seeks to achieve 100% of the inverse of the daily performance of the NYSE Arca Gold Miners Index. Sylvia Jablonski, Managing Director at Direxion. “The launch of the European Financials leveraged ETF is timely, as market reaction to the EU situation presents the chance for bullish traders to magnify their short-term perspective. Our new Gold Miners bear ETF will complement the existing suite of ETFs tracking that space, to give traders another option for taking advantage of short-term opportunities.”

Global asset manager Legg Mason has launched a new smart beta exchange-traded fund targeting exposure to international equities with high dividend yields, low price and earnings volatility and a currency hedge for adverse exchange rate movements against the US dollar. The Legg Mason International Low Volatility High Dividend ETF (Bats: LVHI) tracks income-producing equity securities with low price and earnings volatility from developed markets outside of the US across a range of market capitalizations that are included in the MSCI World ex-US IMI Index.

European digital investment manager Scalable Capital has entered the UK market, opening its portfolio management business with portfolios constructed exclusively from exchange-traded funds. The move into the UK marks a key step in the firm’s ambitions to expand throughout Europe, having already established operations in Germany and Austria. The firm is the latest “robo-advisor” to enter the UK market. “The UK launch is a key milestone as we look to continue the strong growth of our business across Europe,” commented Adam French, Managing Director and co-Founder at Scalable Capital. “We are already one of the fastest growing digital investment managers in Europe and currently manage more than 1,200 client portfolios.”

New Jersey based investment manager WBI Investments has expanded its ‘WBI Shares’ suite of tactical, actively managed exchange-traded funds with the launch of the WBI Tactical Rotation Shares (NYSE Arca: WBIR). According to a statement released by the firm, the ETF is designed to take advantage of opportunities around the globe while seeking to protect capital during unfavourable market conditions. “Knowing where and when to invest can be difficult,” commented Matt Schreiber, President of WBI. “WBIR is designed to take advantage of opportunities around the globe while seeking to protect capital during unfavourable market conditions.”

Exchange-traded fund provider WisdomTree and Hong Kong-based asset manager ICBC Credit Suisse (ICBCCS) have collaborated to launch a new China-focused ETF on the London Stock Exchange. The ICBCCS WisdomTree S&P China 500 UCITS ETF (LSE: CHIN) tracks the S&P China 500 Index, a reference for the float-adjusted market cap-weighted performance of the 500 biggest and most liquid Chinese firms across all Chinese share classes, including A-shares and offshore listings. It is the tenth ETF as part of the Renminbi Qualified Foreign Institutional Investor (RQFII) program to list on the LSE and the third to launch in 2016.

Europe’s third largest provider of exchange-traded funds Lyxor has unveiled a new ETF offering US dollar-hedged exposure to the FTSE 100 Index. The Lyxor UCITS ETF FTSE 100 – Monthly Hedged C-USD (LSE: 100H) is the first ETF in Europe to provide investors with exposure to the FTSE 100 and protect against adverse movements in the British pound against the US dollar. The fund may appeal to US dollar investors who are concerned of future volatility in Sterling following the UK’s vote to leave the European Union. Alternatively it may appeal to British pound investors willing to accept currency risk in exchange for the return on the index as well as the underlying forward currency contracts.

London Stock Exchange (LSE) has welcomed a new China-focused exchange-traded fund from Hong Kong-based asset manager ICBC Credit Suisse and ETF provider WisdomTree. The ICBCCS WisdomTree S&P China 500 UCITS ETF (LSE: CHIN) is the tenth Renminbi Qualified Foreign Institutional Investor (RQFII) ETF to list on the LSE and the third RQFII product to launch in 2016, further cementing the city’s role as a leading venue for the listing of offshore RMB-denominated investment products.

By Antoine Lesne, head of SPDR ETF sales strategy EMEA, State Street Global Advisors.
As generally expected, last week’s European Central Bank (ECB) meeting unfolded without any surprises; nothing new under the sun, so let’s enjoy it while the summer is here and continue to consider Euro corporate bonds. Such a cool, calm attitude suits the need to analyse the consequences of Brexit on the Eurozone. Mario Draghi also had a message that the Central Bank’s actions are but one tool in a whole kit of tools available to support growth and employment; other policy areas need to act swiftly, too.