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NEWSLETTER | 01 May 2020  
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ETFs battle on regardless

It’s not all good news by any means, but a lot of people in the ETF world are quietly enjoying the fact that the sector met a huge period of volatility, long forecasted to be the occasion when ETFs would cause a systemic financial crisis, and sailed relatively safely through.

And here we are a few weeks later, back to launches, with BNY Mellon taking its first step in the water, launching a range of ETFs – a couple of which are completely free. Read our interview with Stephanie Pierce in this week’s newsletter.

DWS came out with its observations that ETFs showed their mettle through the period of financial volatility and Moody’s observed that the only real hint of liquidity issues arose in the fixed income market. Franklin Templeton’s head of capital markets for global ETFs, David Mann, also commented on the fixed income outcome, particularly on the US’s Federal Reserve’s promises to buy up bonds, both directly and through ETFs. 

Read our interview with him in which he questions which bond ETFs the Fed might be buying. This is a timely piece with this week’s latest announcement from the Fed’s Chairman Powell that they are battening down the hatches, as they face: “Considerable risks to the economic outlook over the medium term.”

Some good news for ETFs? India likes them – Cerulli Associates reports that assets are growing in the country, backed by support from the regulator and government.

Finally, we have Hartford Funds’ Brian Kraus who urges investors not to forget multi-factor ETFs during this time.

Another great thing not to forget to do is signing up for our almost live digital summit – qualified investment managers can join us for free at etfLIVE Europe which will take place online from 19-21 May. Click here to register.

Beverly Chandler,
Managing Editor, ETF Express


Companies in this issue
BNY Mellon
BlackRock
Cerulli Associates
DWS
Franklin Templeton
Hartford Funds
Lyxor
Moody’s
SCB Asset Management
Solactive

 



 
European ETFs and ETPs reported net outflows of USD22.83bn at the end of March 2020
Fri | 1 May 2020, 13:05
ETFs and ETPs listed in Europe reported net outflows of USD22.83 billion at the end of March, the largest monthly outflow for Europe, bringing year-to-date net outflows to USD1.63 billion. 
  READ MORE  >
BNY Mellon Investment Management launches ETF range
Fri | 1 May 2020, 13:05
ETF industry giant BNY Mellon has finally taken the final step in its provision of facilities across the ETF eco-system with the launch of its first ETFs.
  READ MORE  >
Franklin Templeton comments on Fed’s purchase of investment grade bond ETFs
Fri | 1 May 2020, 13:05
Late March saw The Federal Reserve establish the Secondary Market Corporate Credit Facility (SMCCF) to support credit to employers by providing liquidity to the market for outstanding corporate bonds.
  READ MORE  >
Solactive and Thai firm produce billionaires’ index and fund
Fri | 1 May 2020, 13:05
German index producer, Solactive, has launched the Solactive US Top Billionaire Investors Index, which it describes as stocks that are leading constituents in the portfolios of investment personages with a longstanding investment track record and success. 
  READ MORE  >
Don't sleep on multi-factor ETFs

Fri | 1 May 2020, 13:05
Brian Kraus, Head of Investment Consulting, Hartford Funds writes that investors are looking for new opportunities to generate alpha in this volatile market climate, but the potential benefits of multi-factor ETFs should not be ignored. 
  READ MORE  >
India sees growth in ETF usage
Fri | 1 May 2020, 13:05
Cerulli Associates reports that while actively managed equity funds continue to accumulate flows in India, the local mutual fund industry is seeing increasing activity in the passive segment with the launch of ETFs and index funds.
  READ MORE  >
ETFs showed their mettle in recent market volatility, says DWS
Fri | 1 May 2020, 13:05
ETFs proved their resilience through the volatility and, beyond that, acted as instant market access tools, as well as providing price discovery and liquidity for investors, during the recent stressed market scenario, according to a note by DWS’s capital markets team.
  READ MORE  >
Market turbulence reveals price of liquidity in fixed income ETFs says Moody’s
Fri | 1 May 2020, 13:05
The latest report from Moody’s Investors Service finds that the March 2020 spate of financial markets volatility demonstrated that ETF performance is governed by its underlying markets. The gap between the price of a fixed income ETF and its net asset value (NAV), which widens during a crisis, is the price of liquidity, the firm says.
  READ MORE  >
Global ETF launches 23-30.04.20
Fri | 1 May 2020, 13:05
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.
  READ MORE  >
 
MORE NEWS STORIES  >
 
  IN MY OPINION
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Luck or careful planning – how one index provider and two ETF issuers dominate the ESG trackers listed on the London Stock Exchange

It’s fair to say the world has turned upside down since BlackRock’s Larry Fink unleashed his annual investment letter back in January.  For those that have not read it, his message was simple, it is time to go all in on ESG.  

 
READ MORE  >
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