Investors should avoid looking exclusively at fund fees when selecting exchange-traded funds, according to a panel of industry experts who addressed an event held by HSBC Global Asset Management last week. The speakers explained that while choosing an ETF with a competitive fee structure is undoubtedly important, investors should not discount the tracking precision of the fund as ETFs which do not perform well by this second metric potentially run the risk of consistently lagging their underlying indices by a notable degree.
‘ Europe ’
French equity markets reacted bullishly to the first round of Presidential elections with the Lyxor CAC 40 UCITS ETF (Euronext: CAC) gaining 4.2% the day after the results were announced. With polls indicating Macron, the pro-Europe centre-left candidate, has a 20-point lead over leader of the far-right National Front Le Pen in the two-way run-off, France looks set to have a pro-business, moderate president next month.
Lyxor has launched a new ETF, offering currency-hedged exposure to the Stoxx Europe 600 Index, on Deutsche Börse’s Xetra and Frankfurt exchanges. The Lyxor Stoxx Europe 600 UCITS ETF Monthly Hedged D-EUR (STXH) tracks the most liquid, large, mid and small-cap companies in European industrialised countries while minimising the effect of fluctuations between index component currencies and the euro.
ETFs listed in Europe experienced net inflows in March of €9.8 billion, leading to a record-breaking quarterly result of over €30bn for Q1 2017, according to Marlène Hassine Konqui, head of ETF Research at Lyxor, Europe’s third largest provider of ETFs.
European investors have significantly increased their commodity exposure, with $1.3 billion going into broad commodity ETFs in the first quarter of 2017, according to analysis from European ETF provider Source.
ETPs listed globally gathered $64.8 billion in net new assets during March, according to BlackRock’s latest ETP Landscape Report, setting a new range of performance yardsticks, having surpassed existing monthly, quarterly and year-to-date (YTD) records.
Trading activity on Tradeweb’s European ETF marketplace during March was the strongest month on record since the platform’s launch in late 2012.
Frankfurt-based index provider Solactive has unveiled a new family of indices tracking leading companies in the field of gender equality.
Amundi has reported that North American equity ETFs listed globally have recorded strong inflows of €21 billion in March, amounting to 41% of total equity ETF flows during the month, and a continuation of the trend seen thus far in 2017. Year to date, global ETFs targeting exposure to North American equities have seen positive flows of €48bn, representing 35% of globally-listed equity ETF inflows.
Online trading firm IG Group has entered the digital wealth management space with the unveiling of its IG Smart Portfolios suite, a range of model investment portfolios constructed solely with iShares ETFs and using asset allocation insights from BlackRock.