| |  | | NEWSLETTER | 6 Mar 2020 |
 | | ETFs hold up well in turbulent markets
There were some pretty big numbers this week in the ETF world. ETF Logic is one of many firms producing the most telling statistics for last week’s volatile markets. To quote Scott McKenna, week to 28 February ETFs experienced massive trading volumes at USD414 billion which made up close to 43 per cent of all equity trading. Equity ETFs experienced massive outflows as investors looked to exit the markets during the panic and SPY lost over USD10.7 billion for the week.
Tradeweb also saw extraordinary record activity with the final week of the month, averaging a record USD1.1 trillion per day. Tradeweb reports European ETFs saw average daily volume (ADV) of USD2.4 billion, a rise of 44.9 per cent month on month (MoM) and 43.4 per cent year on year (YoY). ADV in US ETFs of USD5.8 billion increased 61.6 per cent MoM and 128.1 per cent YoY.
BlackRock wrote a note on the trading activity, seeking to put to rest many people’s concerns that ETFs would not be able to cope with the huge volumes of trading. “Our products were supported by a broad group of liquidity providers and served as price discovery vehicles for investors. Fixed income activity was primarily driven by high yield gross flows, which grew 251 per cent,” the firm writes.
Over at WisdomTree, Nitesh Shah asked if the black swan had landed? Nassim Taleb’s famous theory on extremely unpredictable events, definable after the event by models, could have come true if you look at a United Nations report from 2019 which said: “If it is true to say ‘what’s past is prologue’, then there is a very real threat of a rapidly moving, highly lethal pandemic of a respiratory pathogen killing 50 to 80 million people and wiping out nearly 5 per cent of the world’s economy.”
Moving on, the move to include active funds in the ETF format continued this week. We interviewed Natixis on their planned non or semi-transparent launch through the NYSE’s structure.
Finally, read our interview with Matt Brennan, from AJ Bell who is speaking at our etfLIVE event in May on how he uses ETFs in his portfolios. All the information you need is here…
Beverly Chandler
Managing Editor, ETF Express
Companies in this issue
AJ Bell
ETFLogic
Franklin Templeton
Natixis
Tradeweb
UBS Asset Management
WisdomTree
| | | | | | | | UBS Asset Management’s sustainable ETFs surpass EUR10 billion in assets | | Thu | 5 Mar 2020, 13:07 | | UBS Asset Management's (UBS AM) range of sustainable ETFs has gone over EUR10 billion mark in terms of assets under management. The firm says that the number represents a nearly tenfold increase from three years ago, when the products collectively reached EUR1 billion. |
| | | | ETFs prove a popular choice in turbulent times, says BlackRock | | Thu | 5 Mar 2020, 13:07 | | ETFs are made for these turbulent markets, according to industry giant BlackRock, with volatility testing the resilience of client portfolios, and propelling European ETF trading volume to record levels in the week of 24 February. |
| | | | Natixis plans active non-transparent ETF launch | | Thu | 5 Mar 2020, 13:07 | | The US awaits the first launch of a semi or non-transparent ETF and one of the firms working on getting its product off the drawing board is investment giant and active fund manager Natixis Investment Managers, with USD1 trillion in assets. |
| | | | Has the Black Swan landed? | | Thu | 5 Mar 2020, 13:08 | | In a research note earlier this week, Nitesh Shah, Director, Research, WisdomTree commented on the coronavirus, quoting both Nassim Taleb, author of the influential book Black Swans, and the United Nations. |
| | | | AJ Bell is active in the passive space | | Thu | 5 Mar 2020, 13:08 | | The top panel at ETF Express’s inaugural ETF event etfLIVE in May will see AJ Bell’s Matt Brennan (pictured) talking about how the firm came to use ETFs to fulfil their clients’ needs. |
| | | | Global ETF launches 27.02-05.03 | | Thu | 5 Mar 2020, 13:08 | | There’s a bit of a green tint to this week’s new ETF launches with the expansion of BlackRock’s ESG range with the addition of three new funds offering ESG-focused alternatives to existing ETFs, plus a new WisdomTree fund offering investors access the opportunity to invest in companies from the battery and energy storage solutions (BESS) sector. Elsewhere, UBS Asset Management has debuted a new China A shares ETF, while The Royal Mint Physical Gold Securities ETC has listed on Xetra… |
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