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.
‘ United Kingdom ’
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.
Thirteen new ETFs and ten new ETCs listed on the London Stock Exchange in March, bringing the total number of ETFs and ETPs listed on the exchange to 890 and 451 respectively.
With over 6,000 ETFs, of which there are 1,200 ISA eligible ETFs, it can be intimidating for private investors to know where to start. Oliver Smith, Portfolio Manager at IG, shares some tips on how private should build portfolios using ETFs.
Trading activity on Tradeweb’s European ETF marketplace during March was the strongest month on record since the platform’s launch in late 2012.
Charles Stanley has launched a new managed portfolio service aimed at clients with less than £150,000. The offering, called the Personal Portfolio Service (PPS), has been developed as a high value, cost-effective alternative to the firm’s bespoke discretionary managed portfolios, according to Christopher Aldous, head of asset management at Charles Stanley.
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.
Despite continued uncertainty regarding their operations after Brexit – two-thirds of major financial firms with UK operations are yet to make any public statement about their plans – Europe and UK-focused bank ETFs remain buoyant.
Exchange operator Bats Europe has launched new benchmark indices for ten additional European market, bringing the number of indices the firm offers to 39.
The European Commission has formally announced they have blocked the proposed merger of the London Stock Exchange (LSE) and Deutsche Börse, in a move that confirms widespread market expectations. Had it been allowed, the £24 billion union of Europe’s two largest exchange operators would have overseen a combined market share of around 70% of ETF trading volume in Europe.