Illinois-based investment firm Elkhorn Investments has launched an exchange-traded fund offering access to investment grade preferred shares of US companies. The Elkhorn S&P High Quality Preferred ETF (Bats: EPRF) may appeal to investors looking for regular income-generating securities while still being able to participate in the upside potential of the firm. “Preferreds remain an area of strong investor interest given their relative high income,” said Ben Fulton, CEO of Elkhorn Investments. “We are excited to launch the first high quality preferred ETF, offering investors access to higher income through preferred securities without sacrificing credit quality.”

There are many reasons that fund managers and analysts have provided for the flat performance the British bellwether index over the last 15 years. Not least uncertainty over looming referendums in Scotland and Europe, tumbling oil prices and global recessions, tanking mining stocks or low-performing utilities. But what about social inequality? Andy Haldane, chief economist at the Bank of England, said last week that the large and growing gap between the high salaries of FTSE 100 bosses and the average worker is “eroding social capital” – inequality is holding back British growth.

Amundi ETF has launched two new smart beta European equity ETFs on Euronext Paris targeting momentum and quality factor exposures. The ETFs are designed to help investors perform their asset allocation choices and are cheaper than existing ETFs on the same underlying. The Amundi ETF MSCI Europe Momentum Factor UCITS ETF (MCEU) and the Amundi ETF MSCI Europe Quality Factor UCITS ETF (QCEU) have a TER of 0.23%. Fannie Wurtz, Managing Director at Amundi ETF, Indexing & Smart Beta, said: “The development of a full range of mono and multi-factor smart beta exposures is in line with our strategy to offer a comprehensive toolbox of smart beta solutions.”

HKEX and Thomson Reuters have signed an agreement for the creation of a new series of Renminbi (RMB) indices. The RMB indices will serve as the basis for products, such as ETPs, that help investors manage currency risk. The new global benchmarks will reflect the development of the RMB exchange rate against other major currencies and is the latest step in RMB’s internationalisation. HKEX operates Hong Kong’s securities and derivatives markets as well as four clearing houses in Hong Kong: three of which provide clearing and settlement services for ETPs. Charles Li CEO, HKEX, said: “Our RMB indices will serve as the basis for products to help investors manage currency risk.”

Italian global banking and financial services company UniCredit has become the latest firm to list an exchange-traded fund on SIX Swiss Exchange. The firm has cross-listed the UC Thomson Rheuters Balanced European Convertible Bond UCITS ETF which was previously launched on Xetra. Convertible bonds are hybrid debt instruments that can be converted into a pre-determined number of the issuer’s shares. This allows the bond to participate in the upside potential of a company’s stock price. UniCredit will also act as market maker for the fund.

The world’s largest exchange-traded fund provider iShares has launched an ETF offering currency hedged exposure to Japanese equities that have been screened for positive environmental, social and governance (ESG) characteristics. The iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF (SUSJ) is trading on the London Stock Exchange in euros and British pounds, and on Xetra in euros. An increasing body of research is emerging that shows that by tilting towards companies exhibiting ESG strength, indices are better able to capture long-term sustainable returns by avoiding companies subject to social and environmental risks and favouring those which follow good management techniques. During 2015 the fund’s underlying index, the MSCI Japan SRI 100% Hedged to EUR Index, gained 12.34% compared to 9.90% for the MSCI Japan Index.

The Bank of Japan’s exchange-traded fund buying scheme combined with ETF providers working with the government, has helped the Japanese ETF market boom with assets and flows now hitting record highs. Japan-listed ETFs and ETPs gathered a record US$9.24bn in net new assets in the first two months of the year. Nikko AM is an Asian headquartered company that has been managing assets in Japan for 55+ years. In 2001 it became one of the first asset managers to launch ETFs in Asia and now has a thriving ETF business. ETF Strategy takes a look at the London office and budding ETF business from the asset manager.

Global index provider STOXX has launched a new range of multi-asset indices combining equities and fixed income. These indices can be used as an underlying for exchange-traded funds and should mean investors can construct portfolios according to individual risk preferences and various macroeconomic factors. The EURO STOXX 50 Multi-Asset Indices replicate a hypothetical portfolio which tracks the performance of the EURO STOXX 50 Index and the EURO STOXX 50 Corporate Bond Index. Matteo Andreetto, CEO of STOXX said: “These are the first indices in the STOXX offering which provide market participants with a highly liquid solution for diversification over two complementary asset classes.”

Exchange-traded fund provider Deutsche Asset Management has announced it will change the primary listing venue for three db X-tracker ETFs to the Bats Exchange, a leading electronic stock exchange. The funds are set to move on 9th June and include the Deutsche X-trackers Emerging Markets Bond – Interest Rate Hedged ETF (EMIH), Deutsche X-trackers Investment Grade Bond – Interest Rate Hedged ETF (IGIH), and Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (HYIH) target exposure to the emerging markets, US investment grade, and US high yield fixed income markets, respectively while minimising interest rate risk through short positions in US Treasury futures.

Leading financial data provider Bloomberg has launched the Bloomberg Financial Services Gender-Equality Index, representing companies within the financial services sector that have adopted best-in-class policies promoting gender diversity. The launch is the latest addition to a string of index and investment product launches including exchange-traded funds that promote social equality. Angela Sun, Head of Strategy and Corporate Development at Bloomberg, commented: “Evidence demonstrates that gender-equality policies and practices can affect a company’s financial performance, productivity and ability to retain top talent.”