Ten new ETFs and 27 ETPs were listed on London Stock Exchange in December 2017, making it exchange’s busiest month of the year for new listings.
LSE enjoys flurry of new ETF listings, but on-exchange trading volumes fall flat
The spike in listing activity brought the total number of new ETFs/ETPs introduced during 2017 to 177.
The total number of ETFs and ETPs listed on the exchange as of the end of 2017 was 969 and 413 respectively, incorporating 1,445 and 480 trading lines across multi-currency and distributing/accumulation share classes.
The majority of the new listings came from Leverage Shares, a new ETP issuer on LSE, who brought 25 single-stock ETPs to market. Each product provides twice the daily performance of a single US stock, and each is offered with a total expense ratio (TER) of 0.75%.
The list of new Leverage Shares’ ETPs is outlined below:
Leverage Shares 2X Salesforce.com ETP (CRM2 LN)
Leverage Shares 2X Pfizer ETP (PFE2 LN)
Leverage Shares 2X PayPal ETP (PYP2)
Leverage Shares 2X Alphabet ETP (GOO2 LN)
Leverage Shares 2X Amazon ETP (AMZ2 LN)
Leverage Shares 2X Apple ETP (AAP2 LN)
Leverage Shares 2X Cisco ETP (CSC2)
Leverage Shares 2X CitigroupCITIGROUP ETP (CIT2)
Leverage Shares 2X Coca-Cola ETP (KO2 LN)
Leverage Shares 2X Disney ETP (DIS2 LN)
Leverage Shares 2X Facebook ETP (FB2 LN)
Leverage Shares 2X General Electric ETP (GE2 LN)
Leverage Shares 2X Goldman Sachs ETP (GS2 LN)
Leverage Shares 2X IBM ETP (IBM2 LN)
Leverage Shares 2X Intel ETP (INT2 LN)
Leverage Shares 2X Johnson & Johnson ETP (JNJ2 LN)
Leverage Shares 2X JP Morgan ETP (JPM2 LN)
Leverage Shares 2X McDonald’s ETP (MCD2 LN)
Leverage Shares 2X Microsoft ETP (MSF2 LN)
Leverage Shares 2X Nike ETP (NKE2 LN)
Leverage Shares 2X Oracle ETP (ORC2 LN)
Leverage Shares 2X Starbucks ETP (SBU2 LN)
Leverage Shares 2X Visa ETP (VIS2 LN)
Leverage Shares 2X Netflix ETP (NFL2 LN)
Leverage Shares 2X Nvidia ETP (NVD2 LN)
Fundlogic, the ETF platform of investment bank giant Morgan Stanley, teamed up with index provider Scientific Beta, an affiliate of the EDHEC-Risk Institute, to launch five equity smart beta ETFs providing exposure to the US, Japan, developed Asia-Pacific ex-Japan, developed Europe, and emerging markets. Each of the funds, which are outlined below, charge a TER of 0.30%.
SciBeta HFE US Equity 6F EW UCITS ETF (USHF)
SciBeta HFE Japan Equity 6F EW UCITS ETF (JHEF)
SciBeta HFE Pacific ex-Japan Equity 6F EW UCITS ETF (PHEF)
SciBeta HFE Europe Equity 6F EW UCITS ETF (EHEF LN)
SciBeta HFE EM Equity 6F EW UCITS ETF (EMHF)
Fidelity rolled out GBP-hedged versions of their European and global smart beta ETFs. Each fund selects stocks of large and mid-capitalisation dividend paying companies that exhibit quality characteristics. The Fidelity Europe Quality Income GBP Hedged UCITS ETF (FEQP LN) costs 0.35% and the Fidelity Global Quality Income GBP-Hedged UCITS ETF (FGQP LN) costs 0.45%.
First Trust listed a GBP-hedged version of its actively managed First Trust FactorFX UCITS ETF (FXEU LN), which invests primarily in sovereign fixed income securities denominated in the local currencies of developed and emerging markets and currencies or currency-related financial derivative instruments. Its TER is 0.75%.
Lyxor cross-listed Europe’s first global gender equality ETF, the Lyxor Global Gender Equality UCITS ETF (ELLE LN), which provides exposure to 150 companies worldwide that score highly for gender equality according to the 19 criteria defined by Equileap, an independent gender equality research organisation. ELLE trades in USD and has a TER of 0.35%.
Boost listed two fixed income ETPs – the Boost Gilts 10Y 1x Short Daily ETP (1GIS LN) and the Boost US Treasuries 30Y 3x Short Daily ETP (UL3S LN)– providing inverse daily exposure to UK Gilts and three times the inverse daily exposure to US Treasuries. 1GIS charges 0.25% in fees while UL3S is a little pricier at 0.30%.
PIMCO (with Invesco’s Source) launched an income-accumulating, EUR-hedged version of the PIMCO Short-Term High Yield Corporate Bond Index Source UCITS ETF (STEA LN). This ETF tracks the ICE BofAML 0-5 Year US High Yield Constrained Index, providing exposure to high-yield bonds issued by North American companies where the bonds have fewer than five years remaining till maturity.
Despite the strength in new listings, however, total on-exchange value traded for ETFs and ETPs in December 2017 was £30.3 billion, down by 3% compared to December 2016. For the full year, total on-exchange value traded for ETFs and ETPs was £329.6bn, up by 2% compared to 2016. The broadly flat performance reflects the strength of ETF trading on rival exchanges, MTFs and RFQ platforms such as Cboe Europe Equities (formerly Bats Chi-X), Tradeweb and ITG RFQ-hub.