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LATEST NEWSLETTER AND ARTICLE

From Memes to Millions: Are Finfluencers the New Wolves of Wall Street?

Studies show that platforms like TikTok and Instagram are increasingly influencing investment decisions.

From Memes to Millions: Are Finfluencers the New Wolves of Wall Street?

Studies show that platforms like TikTok and Instagram are increasingly influencing investment decisions.

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PREVIOUS NEWSLETTERS AND ARTICLES

Elon Musk might launch an ETF business

This donkey may be the key to ETF growth

We have rescued a donkey called Moolah and taught it everything about ETFs. Yes, it’s a donkey that can talk the language of ETFs (amazing, right?) and now it’s on a mission to share what it knows with the average Joe on the street.

Why do we not do more to support the underdog?

With Janus Henderson announcing that they are entering the European ETF market, acquiring Tabula, it marks another milestone for the growth of ETFs. Great news yes, but also a chilling reminder that the chances of success for the boutique manager with a “great product idea” is extremely slim.

Mad Men meets ETFs

I often wonder if Don Draper is real and actually works in the ETF industry because boy, can some of these managers really put a spin on how they are positioning Active ETFs.

Do women care less about salaries than men?

We are currently conducting a global ETF salary survey, which has been open for two weeks now. Looking at the engagement last week, there was one trend that immediately stood out to us. Women only represent 12% of our results so far. WOW, we thought, how can that be?

The death of ETFs may be somewhat premature

Interesting thoughts from the CEO of Schroder’s this week who predicted that the introduction of digital wallets will see the end of the fund structure, which would include ETFs. Whilst this might seem radical, we think it’s something which has merit.

ETFs, Jesus, Daniel Kahneman and some random sheep

It seems very strange the success that Active ETFs are having currently. Every man and his dog seem to see this area of the market as being the “next big thing” for ETF growth, like the second coming of Jesus. BUT, why?

How to create a $2bn ETF business in one easy step

If you want to hit the ETF market with a bang, then converting nearly $2bn worth of mutual fund assets is a good way to do it (as Eagle Capital did last week). Indeed, it is becoming a very popular means of entering the ETF market in the US, but so far untried in Europe and Asia.

Do Europeans have bigger cojones than Americans?

Defined outcomes or Buffered ETFs have really hit their stride over the last few years, especially so in the US, where firms such as FT Vest, Innovator and Allianz to name a few, have really carved out a niche in this space. Figures from Morningstar have it that the sector has grown from $200m in 2018, to north of $22bn now.

Lessons from Taylor Swift and ETFs

Did you know Taylor Swift started writing songs at 16 years of age, which means she has spent 18 years honing her craft. Vanguard launched the first index fund in 1976, which means they have had a few years to hone their craft as well.

FCUK me. A tale of ETF names

YODA, HACK, ROBO, HODL, GERM all have one thing in common. They are catchy tickers for ETFs, but is a flashy ticker enough to ensure the success of the product? Hardly.

ETFs: The sh*t is about to hit the fan

This week we released the findings of a recent survey we conducted to find out what mutual fund managers in Europe think about ETFs. It was a follow up to a survey conducted in 2021. Click to find out the results.

Making ETFs on a Commodore 64

This reminds us a bit about what the industry is doing in terms of innovation, specifically around ETF share classes of mutual funds which has been getting a lot of attention of late.

The influence of ETF influencers

You may not think TikTok influencers and ETFs have much in common, but there you’d be wrong. As the role of influencers on TikTok, Instagram etc. explodes, it’s only a matter of time before the broader ETF industry starts to figure out how to tap into the marketing potential of social media and how leveraging influencers becomes part of the core playbook for ETF marketing teams.

Are Active ETFs taking over the world? Maybe not

Actively managed equity ETFs grew 48% globally in 2023. Assets in actively managed ETFs in the US grew 37% in 2023, while passive ETFs only grew 8%. Outside the US, actively managed ETFs grew 28%.

Is it crazy to launch an ETF business nowadays?

What do Coinshares, Wisdomtree, Invesco, UBS, SSGA all have in common? They all recently cut fees in order to remain competitive. Not so long ago, pundits were claiming the ETF price war was over. Well, we guess not.
Obviously this is music to the ears of investors, but must feel like a kick in the nuts for the managers.

2024 will be the year of …

2023 was a fairly fulfilling one with a record stock market performance for the US, a record annual ETF performance for the VanEck Crypto and Blockchain Innovators ETF, record ETF inflows across the globe, the SEC finally approving a spot Bitcoin ETF and let’s not forget, a new war. So what’s in store for 2024?

Whoever said crypto is boring?

There’s never a dull moment in the world of crypto and this story has been 10 years in the making since the first filing of a Bitcoin ETF. There was a court case, a hacked social media account, a frenzy of anticipation, but finally it came with news coming through last week that the SEC had approved all 11 Bitcoin ETF applications. But, what happens next?

‘Dammit: ETFs are eating my lunch, AGAIN’

2023 is coming to an end and the ETF juggernaut ploughs on continuing to gobble up all before it, included all of the flows. And it’s happened all over the world.

Bitcoin or Bust

SEC approval of a Bitcoin is likely to have a positive impact for sure, but is it really going to cause the underlying price to skyrocket? For those who forget, Bitcoin ETFs already exist in a number of countries so a Bitcoin ETF is not exactly new.

How to guide to enter the European ETF market

Blackwater has produced a new ebook on How to Enter the European ETF market. Normally this info would form part of Blackwater’s consulting services, but we are giving it out for free to anyone who is interested in entering the space.

How to achieve success in the ETF game

God loves a trier and so we are back with a new Podcast: ETF SUCCESS STORIES. The first episode is out now featuring the Co-Founders of BondBloxx and it’s pretty cool if you ask us. Getting the inside story of what it takes to succeed in the ETF industry should spark the interest of everyone, so we hope you take the time to check it out. Plus, lots of great more interviews to come.

ETFS: ‘Some asset managers might be smoking crack’

ACTIVE, ACTIVE , ACTIVE, that’s all we hear about now as if it’s like some sort of new found discovery. Correct us if we are wrong, but the ETF industry has been advocating passive investing since the beginning of time claiming ‘you can’t beat the market’, ‘active management doesn’t work’, blah blah blah.

Millennials, the sweet spot for ETFs

A new report of Charles Schwab advocates the take up of ETFs as the investment vehicle of choice from the tech savvy generations. Whilst this report was US focused, its findings very much mirror what BlackRock published earlier in the summer about the European ETF landscape. Younger people like ETFs, simple.

The Rocky Balboa of the ETF industry

Everyone has seen the Rocky movie, we assume, right? Rocky, the underdog fighting the incumbent and winning in the end. It’s a great story. Well, looks like we have a Rocky story in ETFs and it’s called Betashares. Set up in 2099 by Alex Vynokur, an Ukrainian national who emigrated to Australia.

DWS are back baby

2022 was a tough year for the DWS ETF business in Europe with flows really languishing vs the competition and many wondering what was going on. They were on a bad run. BUT now they are back and back with a bang.

Willie Wonka and ESG

What started out as something so promising has quickly turned into a bit of a car crash, it seems. We are now at the stage where firms are actually avoiding using the term ESG altogether.
It reminds us a bit like the movie Willie Wonka and the Chocolate Factory where one of the kids eats so much candy that she ends up exploding. Similarly, so many ETF asset managers jumped on the ESG bandwagon and the green washing became so prevalent, that they ended up in a similar situation to poor Violet.

ETF: What’s the secret sauce and how do you find it?

Everyone says that ETFs are a scale game and only the large firms can succeed. However, there are many small firms who one could claim to be very successful in ETFs, punching above their weight so to speak.
But what is the secret to their success? Is it good luck, good timing, good management, good products, good branding and distribution or a sprinkling of all of the above?

It was announced ARK Invest was taking over RIZE and then that Robeco would be launching a European ETF business.

Will ARK be the catalyst for Active ETF growth in Europe?

Sometimes you wait for a bus for ages and then all of a sudden two of them come along together. It felt a bit like that this week in Europe when it was announced ARK Invest was taking over RIZE and then that Robeco would be launching a European ETF business. Both of these are Active managers so we can assume they will NOT be launching passive products.

The biggest problem in ETFs right now

Anyone reading this sits within the ETF bubble, and within the bubble we all assume a base level of knowledge of the ETF ecosystem. However, outside of the bubble, the level of knowledge around ETFs is pitifully low and we are not talking about the man and woman in the street, but professionals within the wider asset management space.

Back to school time

Coming back after the summer break always reminds us of the return to school, those dreaded back to school adverts, buying school uniforms and getting new books for the year ahead. Yuck

For those of you shuffling back into the office you missed out on last week’s big news. Grayscale gave the SEC a bloody nose and the price of Bitcoin took a jump as a result. High drama indeed. Who said summer was always a quiet time.

Why build an ETF business when you can simply buy one?

Firms are simply apprehensive in building it themselves and screwing it up and so are content to pay more to ensure this scenario does not materialise. Building it yourself is cheaper long term and you create more value, 100%. It’s been done many times and the path is clear.

Can the Boutique ETF manager swim with the sharks?

There is no doubt that this has been the year of Fixed Income so far. Record inflows ytd, BlackRock calling this a “once in a generation” opportunity in the fixed income space”. But, what about those boutique ETF managers who only focus on say Thematic products or equity exposure to a particular market?

Who would like to be a mutual fund manager CEO right now?

It has been forecasted that assets managed by model portfolios will surge to $10 trillion (€9.1 trillion) over the next five years and PWCs predicts that one in six global asset managers will ‘fall to the wayside’ by 2027.

US Bitcoin ETF application frenzy reminds us of Jaws

It has been wild since BlackRock submitted its application for a Bitcoin ETF. Seemingly, BlackRock received some pushback from the SEC, but crucially the SEC issued guidance around what they have a problem with which has not led to a bunch of managers revising their filing and resubmitting.

ETF managers are nothing if an opportunistic bunch

Following last week’s news that BlackRock had filed for a Spot ETF in the US there has been a scurry of activity from other managers following in their tracks all hoping to join the party on BlackRock’s coat tails.

Semi-Transparent ETFs are dead

This week T.Rowe Price launched a bunch of actively managed ETFs. Nothing unusual about that but in this case, these funds are fully transparent vs their existing funds which were semi-transparent. When was the last time anyone launched a semi-transparent ETF? A long time ago is our guess.

A humble apology to the CBI and an exciting new launch

Exciting news about seeing another entrant to the European ETF market with the launch of Circa 5000, and really cool to see them partner with Tumulo and become the UK’s first ETF range to provide pass-through voting to investors.

Inconsistencies with ETF share class approach in Europe is madness

The Central Bank of Ireland says that any asset managers adding an ETF share class to an Irish-domiciled product must rename an entire product umbrella and include the identifier UCITS ETF.

German ETF Market Overview

Germany is Europe’s largest ETF market with a 29% market share of European ETF market. Approx. $410bn AUM invested in ETFs and it is the fastest growing Retail market in the region.

The “star portfolio manager” syndrome is taking over ETFs

Very interesting to see Blackrock launch an Active Fixed Income ETF for star portfolio manager Rick Rieder.
This was no doubt a response to the run-away success that JP Morgan has had with the JPMorgan Equity Premium Income Active ETF (now at $25.9bn AUM) managed by one of their star portfolio managers, Hamilton Reiner. The active manager battle within ETF is now well and truly on.

New investors to accelerate growth in European ETF market

A new report predicts a wave of ETF adoption from the next generation of European investors. According to the Blackrock’s report, ETF investors are getting younger, as 18–34-year-olds replace 35+ age group as dominant cohort. The number of European ETF investors projected to grow by 32% in the next 12 months. Iberia is expected to grow the most and Germany could deliver 2 million new ETF investors.

What is ETF good practice?

In latest report, IOSCO suggests for ETF issuers to avoid “exclusive arrangements” with APs and market makers, especially if this impacts the arbitrage mechanism. It also stresses the importance of conducting due diligence when onboarding APs and market makers as well as monitoring them on an ongoing basis.

HOW TO ENTER THE EUROPEAN ETF MARKET

Launching an ETF business is a big commitment, one which takes considerable thought and planning.
The 3 obvious market entry strategies are Build, Buy or Partner.

Some things never change

The recent news that the EU Commission has toned down on its calls for an inducement ban in Europe hardly came as a shock to us. There are too many vested parties operating in the market to make such a ban likely, unfortunately, and by that, we mean the traditional asset management space.

IS IT WORTH LAUNCHING AN ETF BUSINESS IN EUROPE?

Should more mutual fund managers be taking ETFs more seriously? Find out Pros and Cons when launching an ETF business in Europe.

What if they are all wrong?

Another ETF report, this time from Oliver Wyman predicting more great things for the ETF market in the years ahead. But what if they are all wrong? What if rather than grow by 50% or a 100% or whatever the predictions are, suppose all the stars aligned and the ETF market exploded and grew 10x or 20x. What would happen then?

The ETF Distribution model 2.0

COVID has had a profound impact on how the ETF Distribution model works and for the better according to a new report that we recently launched.

Launching an ETF business in Europe – Fact vs Fiction

Considering entering the ETF market in Europe? Blackwater is an independent ETF consultancy that helps clients separate fact from fiction. Find out the 8 most common questions.

COVID spurred positive changes in ETF Distribution model

The COVID-19 pandemic had a profound impact on the ETF distribution model, resulting in positive changes that have enhanced client engagement, prompted digital investment and forced sales teams to adapt to evolving client demands, according to a report recently published.

Time to get wise to using technology and data

For most people within ETF land right now, leveraging technology extends about as far as to using a CRM tool. But with the advent of AI, times are changing and folks are going to have to start tooling up if they want to stay relevant.

Is the Retail channel really the solution for ETF growth?

The Retail channel in the US is pretty healthy, but in Europe and Asia it is still a pitiful small part of the ETF pie. However, in Europe everyone has high expectations that this is going to change over the coming years and Retail will drive the growth of the market, similarly to how it has done so in the US, sort of.

Global ETFs to hit $50 trn in 2 years

JP Morgan recently predicted ETFs in the US will double within the next five years, reaching $15trn, BBH thinks global ETFs will hit $30trn in a decade, PWC reckons global ETFs will hit $15trn by 2027 and on and on it goes. The truth is none of us have a clue really, hence our headline is a big tongue in cheek.

What does UBS’s acquisition of Credit Suisse mean for ETFs?

UBS’s acquisition of Credit Suisse will create Europe’s third-largest fund house, overtaking JPMorgan AM.
UBS will also become the second-largest passive fund provider in Europe, overtaking Vanguard and Amundi, and lagging only BlackRock in index fund and ETF assets. So whilst another big firm gets bigger, will this prompt other large ETF managers to look to make acquisitions and also muscle up? Maybe.

Can crypto ETPs make a comeback?

Crypto ETPs are having a tough run of it. There is an oversupply of some products e.g. Bitcoin ETPs, flows are weak, the SEC is proving stubborn in their stance and the market is blighted with bad actors. So, not really that surprising to see 21Shares close a couple of funds this week. We are sure others will follow.

Are there too many funds now available?

About 4,300 funds and ETFs alone have been launched in the US in the past decade, bringing the total to more than 10,000. In China the number of funds has doubled, reaching 10,576 at the end of last year. Judging by the pace of products that are being launched, have we reached a saturation point? Do investors really need more funds to achieve their objectives?

Should India be on everyone’s radar?

Whilst many U.S. and European asset managers have pinned their long-term growth prospects in Asia on the Chinese market, is it India where the real opportunity lies?

Capital Markets: Is it really that critical to ETFs?

A special Blackwater video series analysing whether the global capital markets is really that critical to ETFs.
With interviews to top asset management firms.

INDUCEMENTS: TO BAN OR NOT TO BAN?

34% believe that inducement payments should be banned citing concerns that this could negatively impact products and advice offered to their clients, according to a CFA study.

Australia: the forgotten ETF market

The Australian ETF industry is often overlooked, at least compared to the coverage in the US or Europe.
However, January started with a bang bringing the Australia ETF industry to a record $138.5 billion in AUM across approximately 240 ASX-listed ETFs.

Is the ETF market about to double in size?

JP Morgan’s Bryon Lake says the ETF market in the US is about to double in size in the next 5 years. If that is going to happen in the US, can we assume Europe and Asia might follow suit? Maybe not as the same pace, but the direction of travel is clear for sure.

Morgan Stanley crashes the ESG ETF party

Another juggernaut manager hits the ETF playing field with the announcement from Morgan Stanley that they are to launch a suite of six new ETFs – four indexed ESG strategies and two active ESG strategies across a range of asset classes.

Is Europe about to ban inducement fees?

Retrocession or inducement fees are the cancer of fund distribution in Europe (and Asia). So we were very interested to see the comments from the European Commissioner for Financial Stability, who said they are considering to ban them as part of its retail investment strategy.

HAPPY BIRTHDAY SPY

30 years ago marked the real start of the ETF industry with the launch of SPDR S&P 500 ETF (SPY), the first U.S.-listed and still-largest ETF. Little did those involved realise at the time that its launch would spark a revolution in investing, a theme that continues to this day.

IS ESG THE ONLY SHOW IN TOWN NOW?

ETFs aligned with ESG outcomes accounted for 65 per cent of all net inflows into European ETFs in 2022, even as ESG strategies underperformed. Now there is €249bn in ESG-aligned ETFs in Europe, representing 18.8 per cent of total assets

2023 HERE WE COME

2022 is over and most will say good riddance to hit. The ETF industry has continued to grow, but certainly took some hits last year from the blow up in crypto to the closure of most Russia focused ETFs. We have lost some firms along the way but have added a few new entrants.

DIRECT INDEXING: IS IT WORTH THE FUSS?

We have launched a new report where we investigate what direct indexing really is, and what it is not. We assess the potential for disruption on the asset management industry in the US and in Europe and look at whether direct indexing is worth the hype for different investors’ profiles.

ETF INVESTING IN EUROPE PREDICTED TO SKYROCKET

BlackRock forecasts that 10 million new investors across Europe will own iShares exchange traded funds over the next five years.

AXA IM jumps into passive ETFs

AXA Investment Managers expands their ETF line-up to include passive products and more mutual fund to ETF conversions.

A casualty on the ETF battlefield

UniCredit liquidated its two remaining ETFs showing just how hard it is to succeed in certain markets. Australia reported positive ETF flows for October and is quietly catching up to Europe and America.

The crypto ETP world gets whiplashed

A quiet week for European ETF launches but not for the world of crypto ETPs which were rattled by the drama of the FTX fallout.

European ETF flows rebound in October

This past month ETF flows thankfully made up for an ugly September, but on the opposite end, a recent Cerulli report claims the ETF industry in Europe is plateauing.

Non-transparent ETFs in the U.S stall

A busy week for launches in both Europe and the U.S., and in the States, portfolio shielding ETFs have not taken off as expected.

More regulatory reviews of index providers

A regulatory review of index providers by the U.S. SEC seems to have jumped the pond.
Now the IOSCO has launched a consultation looking into the relationship between European asset managers and index providers in an effort to uncover possible conflicts of interest.

Axxion enters the European ETF market

Markets may be volatile, but firms are still taking advantage of introducing new products via the superior ETF wrapper. And ESMA takes a crack at stock market outages with a new proposal.

New ETF entrants keep pouring in

There is no slowing down in Q4 as firms like Fineco in Europe continue their ETF expansion and a slew of new issuers enter the US ETF market.

ETF distribution in becoming laser focused

ETF issuers in Europe are no longer launching new products in every European market and are becoming more targeted on where to be most successful, according to a PwC report.

ETFs OVERTAKING MUTUAL FUNDS UCITS

A quiet week for global ETF launches and flow reporting. While in Europe, ETF growth outpaces that of EU-domiciled UCITS.

Alliance Bernstein finally arrives

A laundry list of ETF launches in the United States including long awaited entrant, Alliance Bernstein. And in Europe, the Central Bank of Ireland will review daily disclosure requirements which could fare well for active ETFs.

Competition in the Metaverse space heats up

Trifecta of Metaverse ETF launches in Europe alongside a slew of other thematic products. And in the U.S., Vanguard’s ETF assets are nipping at the heels of rival BlackRock.

Axa breaks into Europe

In the world of ETFs, we have three new entrants to welcome – AXA Investment Managers and Fineco Asset Management in Europe and NEOS in the States.

Yet Another Thematics Opinion Report

A recent report from Investors Chronicle is certainly not favourable on thematic ETFs. A slew of new ETF products in Europe and a slow week in the U.S.

Waystone enters the white-label arena

Dublin-based Waystone is adding to the increasingly competitive white label space and has sights on global ETF domination.

New Entrant Eqonex Launches in Germany

Digital Assets firm Eqonex launches its first European ETP entrant and in the US, more direct indexing growth as First Trust plans to acquire Veriti Management.

US-Listed ETF flows stall

A handful of thematic and crypto ETF products last week and flow numbers are beginning to trickle in and not looking so pretty. And a lot of exciting activity going on in the region of Asia ETFs.

Tabula to increase focus on fixed income ESG ETFs

After a recent firm survey across Europe, Tabula has announced plans to steer their focus towards more ESG focused Fixed Income strategies. We are getting closer to seeing Grayscale launch more products in Europe and AXA IM may be re-entering the ETF arena.

The Race for Direct Indexing is on

A slew of large asset managers are acquiring or launching their own direct indexing strategies which may prove to be competition for ETFs.

Will Online Platforms Finally Crack the Retail Market?

A recent survey by PwC found that online platforms are now forecast to be the primary source of future ETF demand. The question is, will this finally propel retail adoption of ETFs forward?

Stocks in Europe and the U.S. remain positive despite virus

Stocks in Europe and the U.S. were positive last week even against persistent virus concerns.

Global equities had worst day of the week

Global equities had their worst day of the week on Friday following a resurgence of reported Covid-19 cases adding to investors’…

Global ETP inflows at $45.8 billion

Global ETP inflows were $45.8 billion in May, down from almost $69 billion in April, based on the recent BlackRock. Assets invested in global ETPs increased to $6.10 trillion from $5.84 trillion in April.

Global markets experiencing a rough patch

Global markets experienced a rough patch after following excitement that markets were back in positive territory for the year. European markets saw a decrease in the FTSE 100 of -5.76%, the FTSE 250 -6.30%, Stoxx Europe 600 -5.63% and the DAX -6.99%. U.S. equities were down -4.73% for the same period.

European markets positive

European markets were positive last week with an increase in the FTSE 100 of +6.71%, the FTSE 250 +5.55%, Stoxx Europe 600 +5.99% and the DAX* +6.87% (*markets closed Monday). U.S. equities were up +4.56% for the same period.

HANetf expands in Switzerland

HANetf, a white-label ETF and ETC platform expanded with the launch of its first five ETFs on the SIX exchange in Switzerland. The products listed below offer investors transparent and liquid exposure to long-term social, medical and technological megatrends.

Gold ETFs attracted record inflows in April

Gold ETFs attracted record inflows in April gathering $9.2bn in new investments last month. Reaching almost a five-month period, inflows have totalled $16.8billion and are set for a record year. State Street’s $62billion SPDR Gold Shares, GLD, has taken in nearly $12billion in 2020, ranking it third for worldwide ETF inflows.

China’s ETF market crossed the $100 billion-mark

China’s ETF market crossed the $100 billion-mark last week, a record high since the first ETF product was launched 15 years ago. Year-to-date, 48 new ETFs have launched bringing the total number of ETF products in the China market to 306.

Global ETFs see muted inflows

A quiet week given the long holiday weekend in the UK, but global ETF flows poured in with many markets in the green territory, albeit a bit muted.

ETFs are too big to ignore

ETF Stream put on a fantastic event last week which kicked off with a keynote from Arnaud Llinas of Amundi, who aptly quoted, “passives have not become too big but they are too big to ignore”.

How far can Bond ETFs go?

A quiet week for ETF launches in Europe but a number of new entrants seen in the U.S., and a recent report predicts that global bond ETF assets will hit $5 trillion in less than 10 years.

Grayscale breaks into European ETF market

A wild week in markets, but that doesn’t stop ETFs from plowing ahead with new fund launches and index changes and a PwC survey is predicting that global ETF assets will hit $20tn by 2026.

Mixed bag of global ETF flows

A busy week with April ETF flows being reported across the globe. And finally, after a two-2week delay, it looks like Australia is ready to be next in line for their first physical crypto ETFs.

Hashdex officially launches in Europe

A number of exciting new crypto ETPs launched last week including the 21Shares ByteTree gold and Bitcoin ETP. And Brazilian crypto asset manager Hashdex, officially launched their first crypto ETP in Europe and in the U.S.

The SEC to review revenue sharing in the U.S.

In the U.S., the Securities and Exchange Commission’s enforcement division, SEC has launched an investigation on revenue sharing between ETF issuers and intermediaries. And a busy week of global ETF launches including the first spot Bitcoin and Ethereum ETFs to launch in Australia.

What is hindering UK retail investor growth?

A brief newsletter today with no fund launches in Europe and just a handful last week in the U.S. Interesting UK retail survey conducted by Wisdomtree confirms the need for more investor education.

Big players continue to crash the ETF party

A slew of new fund launches, new European ETF entrant Helveteq AG launches two crypto ETPs, and big news with Neuberger Berman’s launch of three actively managed thematic ETFs in the U.S.

Morgan Stanley plans to enter the ETF market

A slew of new fund launches, ESG index changes, and fee reductions last week. Brazil-based firm, Hashdex, is expanding to the European market and big news with Morgan Stanley’s official announcement to launch ETFs in the U.S.

Will the UK finally allow crypto ETPs?

Rumour has it that the UK may finally publish guidance around stablecoin crypto products in coming weeks. New U.S. entrant to the European market, Roundhill, officially listed its metaverse ETF on Xetra.

Global X is winning the ETF launch race

Global X has kicked off a suite of China-thematic products with an impressive growing list of new listings already this year. And the race to launch the first metaverse ETF in Europe has been claimed by ETC Group and HanETF as they officially listed last week.

FIRST EUROPE-LISTED METAVERSE ETF

A busy week of ETF launches and fund updates in Europe including news that ETC Group and new entrant Roundhill have plans to launch Europe’s first metaverse-themed ETF.

Europe ETFs enjoy inflows despite market turmoil

It has been a busy week of ETF launches and fund updates in Europe along with a full summary of the various implications to funds, exchanges and indices related to Russia.

Capital Group enters the ETF market

The $2.6 trillion AUM firm Capital Group has finally entered the ETF market in the U.S. with six actively managed ETFs. And quite a number of index and exchange announcements related to Russia ETFs.

Purpose Investments to expand Down Under

Canadian Purpose Investments has plans to replicate the success of their $1.7bn bitcoin ETF in Australia. And Fidelity International joins the crypto space in Europe, plus a new FCA ESG rulings may finally drive larger inflows to UK listed ETFs.

European ETFs set new monthly record

A fast start to 2022 for European domiciled ETFs with $29.2bn of new inflows compared to $20.4bn in January 2021, and $14.0bn in January 2020.

Is AllianceBernstein set to enter the U.S. ETF arena?

U.S. and Canada ETF flows are reported for the first month of the year and a slew of ETFs launched globally. The trend of large asset managers entering the ETF space continues as AllianceBernstein indicates their plans to launch U.S. based ETFs in the near future.

How firms are reaping the retail market rewards

New market entrants seen in Australia and the U.S. while a DeFi ETF launch is planned in Brazil. A slew of ETF partnerships focusing on the under-tapped retail market were disclosed. And surprising news last week as the liquidity provider pool shrinks with the sudden announcement of BlueFin closing its doors in Europe.

Gold ETFs shine again after a rough 2021

Gold ETF products are seeing significant inflows as markets gyrate amid inflation concerns and rising geopolitical risks. And we are back to a long list of fund launches last week after a quiet start to the year.

The FCA to review index providers

The Financial Conduct Authority, FCA is planning to review competition law among index providers and every single ETF in the U.S. with the word “inflation” in the fund name saw inflows last year. A record number of ETP launches last year and the smallest number of fund closures since 2014.

Impressive inflows for European ETFs

2021 proved to be a very decent year for European ETFs, topping off the year with net inflows of $195.3bn and, Amundi has finally completed the acquisition of Lyxor and the FT compares certain ETFs to Jurassic Park.

Record breaking inflows reported globally

The party continues as global ETF inflows surpass a record $1trillion as of the end of November jumping last year’s total of $735.7 billion. It’s safe to assume that the record number of ETF launches and mutual fund to ETF conversions helped drive those numbers.

Crypto ETP providers plow ahead globally

A slew of crypto ETP launches and partnerships announced globally as firms harness their nimbleness by accessing other markets including Fidelity’s jump across the US-Canada border and the 21Shares partnership with ETF Securities down under.

A rare tie for first in Canada

Invesco finally jumps into the crypto ETP space with their physical bitcoin ETP launch and it’s a rare launch tie for first with two metaverse themed ETFs launched in Canada. And finally, is Europe closer to a consolidated tape?

Who’s next on the crypto bandwagon?

An exciting list of European ETP launches including 21Shares and a long lineup of thematic ETFs from Global X solidifying their dedication to the European market.

Global ETF assets cross $10 Trillion

Incredible milestone and fun to watch as the numbers keep propelling upwards. Good timing with today’s announcement of an exciting new launch from HANetf and ETC Group and a potential third futures-based bitcoin ETF from VanEck expected to launch in the US today.

Global ETF inflows cross the $1 Trillion mark

No slowing down in 2021 as we see the first calendar year where global ETPs bring in over $1 trillion of assets. More record-breaking news with the new BetaShares Crypto ETF creating a trading volume record on the ASX and two firm acquisitions announced in the U.S and here in Europe.

Will Australia be next to enter the ETF crypto world?

Bitcoin ETFs are still very much in the news and will continue to be with Australia entering the space and even a leverage and inverse filing in the US. ESG was also a popular topic last week with a number of ETF launches in Europe and index switches announced. And truly a case of buyer beware, one ETF ticker is benefiting from the Facebook name change.

SSGA dismisses ETF merger rumours

State Street Global Advisors, SSGA has finally come out to address merger rumours and ESMA proposes amended SFDR rules. And very few global fund launches last week which is probably good given futures-based Bitcoin ETFs stole most of the headlines.

U.S. Futures-based bitcoin ETF is finally here

After 8 years from the first filing, a futures-based Bitcoin ETF has finally been approved by the SEC. The first product is expected to begin trading today with many to follow. Global ETF flows are now available and more commentary on what a possible SSGA merger means.

The Countdown to US Crypto ETFs is on

More “lite” bitcoin ETFs began trading in the US prompting many to believe a true crypto ETF may be approved within the month. Global ETF flows are slowly starting to trickle in and more commentary from pundits on what a possible Invesco SSGA merger means.

ESG ETPs enjoy $11.24 billion of net inflows

A new report reveals that 62% of Institutional investors expect to invest in digital asset products for the first time within the next year. There is no slowing down of global ETF launches and even one product idea created by a High School student in the U.S.

Crypto ETFs among best-performing funds in Europe

Firms entering partnerships continue as Invesco and Galaxy Digital work to create a suite of crypto ETFs in the U.S. Flow data is quiet but plenty of global ETF launches and European retail exchange Equiduct has launched ETF trading in an effort to increase ETF access for retail investors.

ETF issuer merger talks continue to dominate headlines

More big news with State Street Global Advisors once again in the headlines, this time around a possible merger with Invesco. Flow data is quiet but plenty of global ETF launches and Dimensional continues with additional active ETF launches in the U.S.

Janus enters active ETF ESG space

Janus Henderson is launching five actively managed ETFs that integrate sustainable investing criteria. And State Street acquires BBH’s investor services business while Morningstar buys London based Moorgate Benchmarks.

European ETF inflows surpass 2020

News record of ETF flows in Europe and globally, ETF launches show no sign of slowing down.

ETF flows are set to surpass 2020

We may be in the dog days of summer but that is not stopping the record number of ETF flows and the growing number of SEC filings for crypto ETPs in the U.S.

The rise of Thematic ETFs continues

Rize ETFs launched a new ESG ETF and also announced their new stakeholder, AssetCo. In the U.S., another entrant to the crypto ETP SEC filings with Global X entering the ring and, in Asia, gold ETFs are gathering significant assets.

Global ETFs continue their good news trend

More record ETF growth numbers released this week with a lot of talk around not only the success of ETFs so far this year. Model portfolios were also the focus last week and their underrated reputation as well as the possible threat of direct indexing to the ETF world.

European listed ETFs enjoy record first half

European listed ETFs have brought in over $109bn in flows through the end of June. Brussels is pushing for a consolidated tape provider and ETF management fees are on a downtrend.

Can ESG ETFs overtake traditional products?

Interesting thoughts from Detlef Glow on whether or not ESG assets will surpass conventional ETFs.

Two additional firms filed for crypto and blockchain ETFs with the SEC bringing the total to more than 12 firms waiting for approval. Fund launches were relatively quiet in Europe last week and flow numbers are starting to be released around the globe.

21Shares launches world’s first Solana ETP

The rapid growth rate of ETFs in Europe is now surpassing that of the U.S.; 21Shares launches the world’s first Solana ETP, and the FT reports that active managers have an advantage over passive funds when it comes to ESG — there are always differing opinions.

JPMorgan to acquire Nutmeg

A large number of fund launches, followed by the official ETF conversion of four Dimensional equity mutual funds totalling $28.8 billion. The week closed with an equally significant and surprise announcement of JPMorgan’s acquisition of Nutmeg.

Invesco to enter Bitcoin ETF space

Invesco has officially filed two bitcoin ETFs and State Street has created their own digital assets team and hinted at possible crypto ETFs in the future. And the Amundi and Lyxor deal is ahead of schedule.

Double Travel-themed ETF launches in Europe and U.S.

A number of thematic ETF launches including travel related ETFs in both Europe and the U.S. May ETF flows are beginning to trickle in and net new inflows of $15bn for European based ETFs.

May ends with extensive list of ETF launches

Global supply issues and increased demand has led to strong returns for some commodity-based ETPs and once again, retrocessions are in the news as being a hinderance to ETF growth – this time focusing on retail investors.

European ETF inflows continue their tear

This week the ESG launch race continues with a handful of new products including the HanETF pure play solar ETF. Swiss based Valour launched the world’s first ETP tracking the price of ADA and European ETF assets continue a 13 month roll of consecutive inflows.

Medical cannabis ETFs are on a high

Iconic Funds enters the crypto ETP space with their new fund launch, ETF assets under management eclipse traditional index-tracking mutual funds for the first time, and Cannabis ETFs are swelling this year.

Retrocession fees seen as biggest ETFs flow hurdle

VanEck launches a thematic ETF that offers exposure to companies involved in the cryptocurrency and blockchain industries, April ETF flows are published in the U.S. – no shock here – they are positive.
And a Blackwater survey finds that 36% of European mutual fund managers find retrocessions to be the biggest hurdle for European ETF flows.

Majority of mutual fund managers shun ETFs

Blackwater survey finds that 82% of European mutual fund managers have no plans to launch ETF products and do not see them as a threat.

Robotics ETFs see significant outflows

The sharp reversal is starkest in Europe where robotics and automation-themed ETFs saw record outflows of $506m in March alone.

Record ETP inflows once again

In global ETP flows, a trillion dollars in new cash has surged into exchange traded funds over the past 12 months and finally in Asia, Vanguard announced plans to delist all of its Hong Kong-listed ETFs.

State Street to create a digital currency platform

Although a short week, there was certainly no lack of major ETF news. In Europe, it was impossible to miss the headlines of Amundi’s announcement to acquire Lyxor’s asset management arm – no shocker there. And globally, State Street announced a partnership with Pure Digital to create a digital currency platform.

Grayscale plans to convert to ETF structure

Fund launches last week continued to be busy while ETF news on the flow side and regulatory front were somewhat quiet given the short holiday week. In the US, the largest crypto trust announced plans to convert to an ETF which has to rattle the competitor cages of those who have already filed.

Global Thematic ETPs Cross $394 billion

Fund launches last week continued in the ESG space and a number of ETF issuers slashed fees to keep ahead of their competition. And globally, thematic ETP assets crossed $394 billion and will likely to see more growth as ETF providers launch more niche thematic products.

The changing landscape of ETF distribution

The ETF Distribution model in the U.S. has irrevocably changed due to the pandemic. Going forward, you will see more hybrid, data-focused, and marketing driven sales, at least for those who want to remain relevant.

Global ETP assets cross new record

This February ended with record breaking assets of $8.3 trillion. History and fund launches seem to repeat themselves and as such, the trend of ESG and Bitcoin ETP product launches continue. For something completely different and to keep us on our toes, LeverageShares added 25 new single-stock inverse and leverage ETPs to its roster.

ETC Group lists first Ethereum ETP

First Trust has entered the ESG space with its recent launch of an actively managed global ESG ETF and cryptocurrency ETPs continue to dominate headlines with the launch of ETC Group’s first Ethereum ETP. Rumors are swirling that Aberdeen may enter the European ETF market after hiring a Head of ETF Sales strategy.

Active and Crypto ETFs top European investors’ wish list

The US continues to dominate headlines with new semi-transparent active ETF launches making us wonder if the release of BBH’s newest survey prompted European investors to want some of the action. Europe is certainly well ahead of the US on the crypto ETP front but when will non-transparent active be allowed? Not sure if we should hold our breath on that one.

Northern Trust finally breaks into European ETF space

Northern Trust is finally breaking into Europe’s fast expanding $1.3tn ETF market, marking the latest move by a big US competitor to tap into the growing shift among European investors into exchange traded products.

Global Bitcoin ETPs heat up

ETPs are the most popular way for European institutional investors and wealth managers to gain exposure to Bitcoin.

LGIM launches first hydrogen economy ETF

Legal & General Investment Management has expanded its thematic range with the launch of Europe’s first hydrogen economy ETF. The L&G Hydrogen Economy UCITS ETF (HTWO) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and the SIX Swiss Exchange with a TER of 0.49%.

21Shares expands its Crypto range

The 21Shares Polkadot ETP (ADOT) is set to list on the SIX Swiss Exchange will track the price of polkadot, the third-largest cryptocurrency.

Can the U.S. catch up to Europe’s embrace of ESG?

Amundi launched a new Japanese equities ETF, the Amundi Index MSCI Japan SRI UCITS ETF DR – Hedged EUR (C), which provides exposure to large and medium-sized Japanese companies with an ESG focus. The ETF is listed on Xetra and Börse Frankfurt.

Will water be the next big thing in ETF thematics?

The climate theme will continue, but instead of solar energy, investors’ attention will switch to water.

Tabula enters the ESG arena

The Tabula EUR IG Bond Paris-aligned Climate UCITS ETF (TABC) is listed on Deutsche Boerse with an OCF of 0.25%.

Five things to do now to land a job

These might seem obvious things to do, but as an ETF & Digital Assets head hunters at Blackwater, we have come across countless candidates who have missed out on opportunities because of a failure to adhere to these points.

Thematic ETFs growth set to continue in 2021

Net flows into sector-themed equity products during the first 10 months of 2020 amounted to EUR89 billion, more than triple the net sales for 2019. Assets under management amounted to EUR512.4 billion at the close of October 2020.

Global X breaks into the European market

Global X launched its first two ETFs on the London Stock Exchange – the Global X Video Games & Esports (HERU) and Global X Telemedicine & Digital Health (EDOC).

Best month ever for Europe’s equity ETFs

ETFs attracted record inflows of $121bn in November, a jump of 14.5 per cent on the previous best month for new business.

Record ETF inflows for November

In Europe, Bloomberg reported an impressive month of €12.8billion of inflows for November, most of which went into equity-based products.

VanEck launches new Bitcoin ETN on Deutsche boerse

The new VanEck product allows investors to participate directly in the performance of bitcoin without having to buy the digital currency themselves.

Demand for fixed Income ETFs continues to grow

The fixed income segment of the European ETF market has developed rapidly over the last five years with assets jumping from €95bn in 2015 to €257bn, accounting for over a quarter of the entire ETF ecosystem this side of the pond.

Is the ETF price war a thing of the past?

A cut-throat price war that has caused fees for mainstream exchange traded funds to sink to unprecedented lows may have now run its course. Average expense ratios for passive equity ETFs have almost halved from 0.34 per cent to to just 0.18 per cent in the US during the past decade.

VanEck to further expand in China

VanEck has submitted its application to establish a retail fund management business in China, becoming the fourth global manager to do so after Chinese authorities lifted restrictions on foreign ownership in April this year.

Massive outflows prior to U.S. election

Investors pulled money out of U.S.-listed ETFs this week amid a steep sell-off in global equities. The S&P 500 tumbled to nearly 10% off its all-time highs ahead of the high anticipated U.S. elections next Tuesday.

Will October inflows surpass September?

ETF promoters in Europe experienced net inflows of EUR5.9 billion for September Lipper figures show, but assets under management in the European ETF industry (EUR870.9 billion) decreased over the month.

A week of crystal ball predictions

European ETFs to hit EUR 1 trillion in assets before end of 2020. European ETFs attracted inflows of EUR28.8 billion in the third quarter of 2020 and now stand at EUR948 billion AUM.

Europe ETFs close at record pace – Does it Matter?

ETFs in Europe closing at record pace as issuers struggle to attract assets to new products. According to data from Morningstar, some 286 ETFs were closed in 2019 with a further 223 shut during the first eight months of this year. With a monthly average rate of 28 closures, this figure to climb to a record high of 334 by the end of the year.

Are synthetic ETFs making a comeback?

Synthetic ETFs see resurgence as investors reap outperformance rewards. Synthetic ETFs offering exposure to US and global equities have outperformed their physical counterparts this year as investors begin to turn back to the swap-based structure.

Is Lyxor for sale?

Rumours have it that Société Générale is preparing a sale of its asset management business Lyxor as part of attempts to improve its finances following two quarters of losses.

Active ETFs on the way up

ESG, thematic and active ETFs are predicted to see the strongest growth over the coming two to three years as passive ETFs’ majority slims.

It’s all about ESG

ESG ETFs go from strength to strength. ESG ETFs reached €51.5 bn by the end of August 2020, according to Morningstar.

Strong inflows seen in August

Flow data is starting to roll in for the month of August showing a continued record year for inflows.

Vanguard to exit Hong Kong

Vanguard has announced it will exit Hong Kong and transfer its Asian headquarters to Shanghai and will also wind down its Japan operations.

US and Canada received higher salaries than Europe

The Blackwater ETF salary survey was conducted over 2,000 people participating globally, analysing by company type and by role in North America, Europe and Asia Pacific. Click to find out the results we got.

Equity ETF flows finally surpass fixed income

U.S. equities were up +0.77% and the CSI 300 was up slightly +0.35% for the same period.

Emerging market ETPs see first inflows since January

Money was added to the space across regions, as opposed to June’s strong APAC-domiciled focus, although single country products were the “main beneficiaries”, with China “in particular” benefiting.

ETF Salary survey analysis: ‘Money isn’t everything’

A Blackwater global salary survey of the ETF industry highlights a few trends that both confirms some widely held beliefs and introduced new ways of thinking about how money motivates people.

Blackwater global ETF Salary Survey 2020

Did you know that in 2020 employees in the US and Canada received the highest salaries across the industry, while in Europe the lowest? In this global ETF salary survey conducted over 2,000 people participating globally, we analysed by company type and role in North America, Europe and Asia Pacific. Guess which results we got.

U.S. ETF holdings hit $4.66 trillion

U.S. listed ETFs hit a record this past week of $4.66 trillion in assets passing the pre-pandemic peak.

Massive outflows from Vanguard all-world dividend ETF

The Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL) saw $1.2bn outflows in the week to 24 July, the most across all European-listed ETFs, taking its total AUM to $1.1bn.

Thematic ETFs are having a moment

Global markets began the week in positive territory on news of upbeat vaccine trial developments and the unanimous agreement among EU leaders for an additional €750bn in coronavirus recovery funds.

June Equity ETF Flows back in positive territory

Stocks in Europe, the U.S. and China were mixed last week. The FTSE 100 jumped +3.20%, the FTSE 250 was up +0.99%, whilst the Stoxx Europe 600 saw an increase of +1.63%. The DAX was also up for the week with a positive return of +2.26%.

Vanguard pulls in $90.4bn of new assets

VanEck launched a new ETF designed to capitalise on global companies operating with a wide economic ‘moat’ over their peers.

Credit Suisse surpasses $2bn AuM

Since their return to the ETF space in March of this year, Credit Suisse’s range of ETFs have surpassed $2bn in assets under management.

China’s influence grows

China has leapfrogged the UK and France to become the world’s fifth-largest fund domicile. The Asian country pulled ahead of established asset management markets France, the UK, Japan and Australia to seize 4.1% of worldwide fund assets.

Global ETP inflows of $45.8 billion in May

Global equities rose last week as investors reacted to news of additional government stimulus and central bank support.

First Bitcoin ETC launched on Deutsche Börse

ETC Group plans to list the world’s first centrally cleared Bitcoin Exchange Traded Cryptocurrency, Bitcoin Exchange Traded Crypto – (BTCE).

HSBC launches sustainability range

HSBC Global Asset Management launched a range of sustainable equity ETFs tracking newly created FTSE Russell indices.

HANetf expands in Switzerland

The European white-label ETF and ETC platform, HANetf expanded with the launch of its first five ETFs on the SIX exchange in Switzerland.

Gold attracts record inflows

Overall Markets: European markets were mixed last week with a decrease in the FTSE 100 of 0.85%, the FTSE 250 +1.07%, Stoxx Europe 600 -0.35% and the DAX +0.14%. U.S. equities were down 0.35% for the same period.

China’s ETF market crosses the $100 billion mark

European markets were down last week with a decrease in the FTSE 100 of 2.2%, Stoxx Europe 600 -3.28% and the DAX -3.32%. U.S. equities were down 2.22% for the same period.

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