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. According to data from ETFbook, DWS saw $7.5bn UCITS ETF inflows in the third quarter – almost 20% of all exchange-traded product (ETP) flows – taking its overall assets under management (AUM) to $164bn and shooting to the top of the leader board in terms of flows.

That’s some turnaround. What caused the blip is anyone’s guess but to turn around such a big ship like that is impressive.

 

Fund Launches and Updates

 

EMEA

 

Swiss-based crypto investment boutique FiCAS has launched a new actively managed ETP, offering professional investors diversified exposure to a selection of the most prominent digital assets.

The FiCAS Dynamic Crypto ETP (BTCD SW) has been listed on SIX Swiss Exchange in US dollars, euros, and Swiss franc. etfstrategy

 

Tabula has expanded its fixed income range with the launch of the world’s first Paris-aligned investment-grade ultrashort bond ETF. The Tabula EUR Ultrashort IG Bond Paris-Aligned Climate UCITS ETF (TUCP) is listed on Deutsche Boerse with a total expense ratio (TER) of 0.15%. etfworld

 

KraneShares has expanded its China range with the launch of an environmental clean tech ETF. The KraneShares MSCI China Clean Technology Index UCITS ETF (KGRN) is listed on the London Stock Exchange, Euronext Milan and Deutsche Boerse with a total expense ratio (TER) of 0.78%. etfstream

 

KraneShares has also entered the German ETF market, listing six ETFs on the Deutsche Börse Xetra. bloomberg

 

HSBC Asset Management has launched a climate technology-focused ETF in partnership with Nasdaq.  The HSBC Nasdaq Global Climate Tech Ucits ETF was listed on 13 October on the London Stock Exchange and will track the Nasdaq CTA Global Climate Technology index. citywire

 

21Shares has expanded its line-up of digital asset investment products with the world’s first ETP providing directly backed exposure to MKR, the governance token of the MakerDAO platform.

The 21Shares Maker ETP (AMKR) has been listed on BX Swiss in Swiss francs, on Euronext Amsterdam in US dollars, and on Euronext Paris in euros. etfstrategy

 

 

AMERICAS

 

REX Shares the launched of the REX FANG & Innovation Equity Premium Income ETF (Nasdaq: FEPI). The ETF is designed to provide exposure to innovative, large-cap technology stocks along with the potential for high monthly income using a sophisticated covered call strategy. businesswire

JP Morgan Asset Management has launched a new actively managed fixed income ETF in the US that seeks to capture alpha across investment-grade bond markets by utilizing a bottom-up, value-oriented approach. The JPMorgan Active Bond ETF (JBND US) has been listed on NYSE Arca with an expense ratio of 0.30%. etfstrategy

Hartford Funds has added the first active equity ETF to its lineup through the conversion of an existing mutual fund with a 27-year track record. The Hartford Quality Value ETF (QUVU) is subadvised by Wellington Management. etftrends

 

ASIA-PACIFIC

South Korean’s are going wild for Leveraged ETFs seemingly. ft

Global X has expanded its ETF offering in HK  with the launch of a strategy investing in investment grade, U.S. dollar-denominated bonds from issuers in Asia.

The new Global X Asia USD Investment Grade Bond ETF, was listed on the Hong Kong Stock Exchange Thursday. prnewswire

 

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Flows

 

BlackRock writes that ETF flows were muted over September with USD63.1 billion added to global ETPs in September, the third consecutive month-on-month decline, down from USD65.7 billion in August.

Equities saw net inflows pick up to USD50.5 billion in September, but this was partly offset by a slower pace of fixed income buying (USD15.4 billion). Commodities (-USD3.5 billion) saw continued selling.

Rates continued to dominate fixed income flows, with USD16.9 billion added

Investment grade corporate bond ETFs suffered their second-highest monthly outflows on record in September.

Net outflows of $4.1bn from investment grade credit ETFs — selling that was concentrated in US-listed vehicles although their Europe-listed counterparts also suffered outflows of $0.6bn. That number has only been exceeded once since BlackRock’s records began, in March 2020 when outflows from investment grade ETFs hit $5.1bn

 

The European ETF industry enjoyed inflows over the course of September according to Refinitive, but despite the net inflows,  assets under management decreased from €1,444.5 bn as of August 31, 2023, to €1,430.8 bn at the end of September due to the performance of underlying markets. refinitiv

 

Noteworthy

 

DWS closes gap on Amundi following strong ETF inflows in Q3.

According to data from ETFbook, DWS saw $7.5bn UCITS ETF inflows in the third quarter – almost 20% of all exchange-traded product (ETP) flows – taking its overall assets under management (AUM) to $164bn. etfstream

Around 75% of the 376 new ETFs launched this year through Oct. 6 were active, according to Morningstar Direct. Large, established asset managers that have been slow to cash in on investor demand for exchange-traded funds are now trying to grab a slice of the market with a flurry of new ETFs and also by converting existing mutual funds into ETFs. reuters

SEC reportedly won’t appeal court decision on Grayscale Bitcoin ETF. If true, the SEC will need to review and decide on Grayscale’s spot Bitcoin ETF application. cointelegraph

Appetite for active ETFs has fallen away across most Asia Pacific markets in the past few years, with one standout exception of South Korea where inflows have skyrocketed.

Overall adoption of active ETFs across the APAC region is still in its early stages. Net flows into active ETFs across four APAC markets where they are permitted, namely Australia, Hong Kong, Indonesia and Taiwan, amounted to US$458 million between January and August 2023.

This represented a decline of 34% from the US$691 million received in the first eight months of 2022, according to Morningstar data. ignites

 

Movers and Shakers

 

Donald Kernizan has joined Dimensional Fund Advisors as senior Capital markets Managers.

 

Kevin Marsh has joined 21Shares as head of US Sales.

 

From behind the Desk

 

US Bank has kindly invited Blackwater’s founder Michael O’Riordan to take part in a webinar this week on how best to enter the European ETF marketplace. In it we will go through:

• Best strategies for entering the European ETF market – build, buy or rent?
• What to consider when looking to build your own ETF platform.
• How much will it cost, how long will it take and what are the execution risks involved.
• How does distribution work in Europe and what are the challenges?
• How does distribution differ in the U.S

You can sign up HERE.