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.

This will come at a price for the industry though. As PWC recently pointed out, growing retail brand awareness, being present on online platforms and providing investor education all require significant capital investment. This is not low hanging fruit by any means. Plus, how sticky is Retail money? We have all seen how temperamental Retail money can be when markets turn sour.

There is no doubt that the Retail channel will grow but will it be the solution to every managers problems? We doubt it.

Fund Launches and Updates

 

EMEA

 

Amundi to merge the $3.7bn Lyxor MSCI World (LUX) UCITS ETF into the Amundi MSCI World III UCITS ETF. etfstream

VanEck has launched Europe’s first ETFs offering exposure to the defence and upstream oil sectors.

The VanEck Defense UCITS ETF (DFNS) and VanEck Oil Services UCITS ETF (OIHV) are listed on the London Stock Exchange and Deutsche Boerse with TERs of 0.55% and 0.35%, respectively. etfstream

VanEck has also announced the launch of the VanEck Robotics ETF (IBOT), a thematic equity ETF offering exposure to the leading global companies that are driving and benefiting from the growth of the robotics industry. etfexpress

21Shares has expanded its crypto exchange-traded product (ETP) range with the launch of a strategy offering exposure to stacks. The 21Shares Stacks Staking ETP (ASTX) is listed on the BX Swiss Exchange with a total expense ratio (TER) of 2.50%. etfstream

 

AMERICAS

 

DWS have launched a new Climate fund with the largest seed in history. The Xtrackers MSCI USA Climate Action Equity ETF (USCA) launched with $2bn of seed coming from Finnish pension fund Ilmarinen. Its lists on NYSE Arca with a TER of 0.07%. etftrends

Teucrium launches Teucrium AiLA Long-Short Base Metals Strategy ETF. etfexpress

VettaFi has acquired the ROBO Global Index Suite bringing the full range of index solutions now underpins more than USD17 billion in ETFs and other investment vehicles. etftrends

Bill Miller Jumps Into ETFs With a Pair of Active Funds. The legendary Wall Street trader’s firm Miller Value Partners recently filed with the Securities and Exchange Commission to launch the new exchange-traded funds, including the Miller Value Partners Appreciation ETF and the Miller Value Partners Leverage ETF. etf.com

iShares is preparing to offer a pair of funds that seek to limit losses for investors, so-called buffer ETFs that are among the fastest-growing corners of the industry.

The firm this week filed a prospectus with the Securities and Exchange Commission to offer the BlackRock Large Cap Moderate Buffer ETF and the BlackRock Large Cap Deep Buffer ETF. yahoo

 

CLICK to listen stories from inspiring leaders

This week we speak with Holly Framsted, Head of ETFs at Capital Group.

In this conversation we hear Holly talk about how she wanted to be a forensics psychologist growing up, why it was thanks to a mentor that she made the switch from portfolio management to product, how setting an example for her kids gets her up every morning and how managing work life balance is a bit like surfing.

Flows

 

 

An ultra-cheap corporate bond exchange-traded fund has quietly been ballooning in assets in an otherwise tepid year for corporate bond demand.

The Schwab 5-10 Year Corporate Bond ETF (SCHI) has pulled in a whopping $4.7 billion so far this year, the seventh-most of any ETF. yahoo

 

Noteworthy

 

Actively managed equity funds in Europe had their worst year of underperformance for over two decades in 2022, according to analysts at UBS. ignites

Additional reads

 

Advisors are more than ever seeking ETFs, according to a recent report from Cerulli in the US. etf.com

 

From behind the desk

 

If you have not seen already Blackwater has launched the ETF BOOTCAMP, a new ETF training program.

The program is designed to provide an in depth 360 degree overview of the ETF marketplace in Europe.

 

The content includes:

History of ETFs – Why ETFs have been successful – The mechanics of ETFs – How to invest in ETFs – The European ETF landscape – How are ETFs distributed in Europe – The future of ETFs

 

ETF Bootcamp is aimed at people who work in ETFs but want greater insight or those looking to understand the ETF industry from a standing start. Whether you work on the asset servicing side, the ETF provider side or even those who are ETF investors, this is for you.

Contact us to find out more.