In a fairly quiet week for new ETF launches, UBS responded to the seemingly ever-increasing demand for ESG investment products with the launch of two sustainable investing funds on Xetra and Börse Frankfurt. Elsewhere, Brompton launched two new actively managed dividend ETFs focused on real asset and low volatility securities, while First Trust also launched a new actively managed fund sub-advised and managed by TCW Investment Management Company.
Launches & Fundraising
Franklin Templeton Canada has launched the Franklin Global Aggregate Bond Fund to make it easier for financial advisors and investors to access its popular global investment grade bond ETF in a mutual fund structure.
The big news in terms of new ETFs this week is the launch by ETF industry giant BNY Mellon of its very first exchange traded funds, a suite of three Morningstar-benchmarked equity ETFs. Elsewhere, Lyxor launched a range of five sustainable investing funds on Xetra and Borse Frankfurt, while BlackRock debuted a new government bonds iShares, also on Xetra and Norse Frankfurt.
European private equity and alternatives investment platform Moonfare has launced a new fund offering giving individual investors access to investments in US tech firms.
Tikehau Capital, an alternative asset management and investment group, has created its first European Long-Term Investment Fund (ELTIF) dedicated to Banca March private clients in Spain.
The pick of this week’s new ETFs is the ‘milestone’ launch by BlackRock of a suite of three new iShares funds that combine environmental, social and governance (ESG) issues with the growing demand for minimum volatility factor strategies. BlackRock says it expects the sustainable indexing sector to attract USD1.2 trillion in new assets in the next decade. Elsewhere, UBS debuted a new Chinese government bonds ETF and Lyxor a fund based on the DAX 50 ESG index, with both making their bow on Xetra.
Deutsche Bank Wealth Management has launched a new series of strategic asset allocation (SAA) ETF-based funds in Europe, particularly in response to demand from clients for simple, cost-effective, long-term investment portfolios designed to address the challenges of unstable market cycles.
With two weeks of new launches to cover given last week’s Easter break, a mixed bag of newcomers includes two bond-focussed offerings from Inveso – a short-dated US government bond fund and a GBP corporate bonds ETF. Elsewhere, BNY Mellon debuted a suite of eight funds designed to cover the core exposures in a typical asset allocation strategy, while ETFMG and Wedbush teamed up to debut a new fund covering the cloud computing sector.
In another predictably quiet week for ETF launches, Lyxor was ‘on-trend’ with the debut of a new suite of ‘ecosystem’ funds designed to be consistent with the carbon emission reduction targets of the Paris Agreement of 2015. Lyxor says the ETFs, which track MSCI's Climate Change indices, provide investors with access to European, US, Emerging Markets and World equity exposures in a 'simple, transparent and cost-effective way'.
With the global coronavirus crisis still causing challenges for the global financial sector, there’s just a single ETF launch to report on this week, a new iShares ETF from BlackRock on Xetra and Börse Frankfurt providing investors with access to corporate bonds with a focus on sustainability.