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NEWSLETTER | 7 February 2025

We have a bit of everything this week, hence today’s title which will send British people of a certain age all of a quiver.

We published a new podcast, courtesy of our partnership with TrussEdge, with the incomparable Dave Nadig enjoying the full opportunity to say it as he sees it… listen now using this link.

We have also opened the voting on the shortlisted firms in this year’s European ETF awards, with issuers selected by our data partners Trackinsight and service providers nominated by you. Follow this link to finish the process and place your votes for your favourite firms. Remember, the firms with the most votes win!

Gill Wadsworth, who some of you will know as the editor of our sister title, Institutional Asset Manager, took a look at carbon markets this week, talking to KraneShares Head of Climate Investments, Luke Oliver, who says: "[Carbon allowance trading] is a market mechanism and when you think about how it works, it is pretty genius. You create a market where the rising price of carbon doesn’t suddenly kill an industry, instead it gives them a runway to gradually shift emissions downwards. You give them a financial incentive, you can monetise it and hedge your energy transition, and that’s what makes it so attractive. Plus, it creates massive revenues for the government."

We also dabbled in academia this week, bringing you London’s Bayes Business School study of ETFs which found that they improve equity market efficiency. Andrew Clare, Professor of Asset Management at Bayes Business School (City St George’s University of London), Santiago Guzman, founder and managing partner at Kendall Gateway Group, and Amir Rezaee, founder of Optimex.ai and Associate professor at ISG Business School, Paris, are the co-authors of the paper.

Clare explains: "By enabling efficient trading on macroeconomic insights, ETFs have helped align market prices with broader economic conditions – a process known as macro-efficiency."

Beverly Chandler, Managing Editor

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"There is no long-term investor on the planet earth that needs 2x leverage MicroStrategy. I’m not saying it’s not a viable thing to do with your money. Going to the casino and taking a punt is also a viable thing to do with your money. Lighting it on fire and putting it in your backyard because you ran out of kindling is also a thing you can do with your money. People can do whatever they want!" Dave Nadig.

London’s Bayes Business School writes that, according to their research, ETFs have improved the efficiency of stock markets in the developed world.

It took just one day for the newly sworn in President of the US, Donald Trump, to withdraw from the Paris agreement on climate change.

Top 10 performing ETFs.