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NEWSLETTER | 9 Sep 2022

Voting is open for the ETF Express US awards 2022

We are very pleased to bring you the opportunity of having your say in this year’s US ETF awards, with both issuer and service provider categories now open for voting.

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We had two stories of potential drivers for growth in demand for European ETFs this week. Firstly, Cerulli Associates’ latest research in Europe revealed that European investors’ appetite for active ETFs is growing as the usefulness of these tools in portfolio management gains wider recognition. However, concerns and barriers remain, the firm says.

Assets held in active ETFs in Europe have more than doubled since 2018, rising from EUR7.4 billion (USD7.3 billion) to EUR16.0 billion at the end of July 2022. Active ETF assets account for just 1.2 per cent of the EUR1.3 trillion European ETF market, which suggests opportunity for growth, the firm says.

Another possible driver for growth in ETFs in Europe lies in the use of ETFs in impact investing, which is set to penetrate capital markets, according to the latest study by DWS and CREATE-Research: Impact Investing 2.0 - Advancing into public markets.

ETF launches were back with a vengeance this week, having virtually ceased by the end of August. The metaverse dominated with three launches based on the sector that represents the future, or rather companies that stand to do well in the future, from Fidelity, Franklin Templeton and LGIM.

And of course cryptocurrencies were under the spotlight this week with the news of a USD25 million funding round for 21Shares, led by hedge fund group Marshall Wace, which the firm says makes it Switzerland’s first crypto unicorn with a valuation of USD2 billion. We also had HANetf’s first Digital Assets and Crypto review, news that ETC Group is to launch a new ETP based on the upcoming Ethereum hard fork and more news from Brazil-headquartered Hashdex which has launched its Nasdaq Crypto Index in Frankfurt, Paris and Amsterdam.

Beverly Chandler, managing editor, ETF Express

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Companies in this issue

21Shares
AXA Investment Managers
Cerulli Associates
CREATE-Research
CT Investments
DWS
ETC Group
Fidelity
Franklin Templeton
Global X
Hamilton ETFs
HANetf
Hashdex
LGIM
Ossiam
VanEck
Wallick Investments
Xtrackers

Swiss-based crypto firm, 21.co, has announced a USD25 million round led by Marshall Wace. The firm writes that this round of funding values the business at USD2 billion, making 21.co Switzerland’s largest crypto unicorn.

Impact investing is set to penetrate capital markets, and passive investments such as ETFs and mandates will be an important driver of this development is the central finding of the latest study by DWS and CREATE-Research: Impact Investing 2.0 - Advancing into public markets.

Cerulli Associates writes that European investors’ appetite for active ETFs is growing as the usefulness of these tools in portfolio management gains wider recognition. However, concerns and barriers remain, the firm says.

Despite the long weekend in the US slowing things up a little in the ETF world, European ETF launches were back with a vengeance this week.