ETF Express Newsletter 13.10.23

Risk off sentiment appears prudent

Invesco’s Paul Syms, head of EMEA ETF Fixed Income and Commodity Product Management has commented on September’s slow month for fixed income markets, noting that a more buoyant picture for the global economy combined with central bank commentary that was broadly hawkish on rates had an impact.
The firm comments that the ‘risk off’ sentiment appears prudent given the market outlook, as it looks that growth will slow and inflation will fall back towards target.
LSEG Lipper’s data reported assets under management in the European ETF industry decrease over the course of September to EUR1,430.8 billion. Detlef Glow, Head of EMEA Research at LSEG Lipper, comments: "Some investors already expect that there might be room for decreasing interest rates later this year which might be reflected by the estimated inflows in bond ETFs."
Our interview this week was with the woman of the moment, Cathie Wood, founder and CEO of ARK Invest which has just announced the acquisition of Europe’s thematic ETF issuer, Rize ETF.
Wood tells us: "This transaction marks a significant milestone in ARK Invest’s global expansion strategy and allows the firm to bring its suite of innovation-based active equity ETFs, under the UCITS framework, to investors across Europe, the United Kingdom and new markets globally.
"The transaction allows ARK to establish a European UCITS suite of its ETF strategies along with the proven distribution excellence of Rize ETF. It also incorporates Rize ETF’s valuable and differentiated impact strategies to be distributed by ARK affiliates across our global footprint. We are planning to launch several of ARK’s actively-managed strategies in the European markets by the end of the year."
Watch this space!

Beverly Chandler, Managing Editor
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