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.
Global ETF flows are finally reported and the first single stock leveraged and inverse ETFs launch in the United States.
Fund Launches and Updates
EMEA
Amundi has launched the Amundi S&P 500 Equal Weight ESG Leaders UCITS ETF (WELE) on the Deutsche Boerse with a total expense ratio of 0.18%. ETF Stream
CoinShares announced the listing of their physically-backed staked Algorand ETP on Germany’s primary market Xetra. Management Fee: Reduced to 0.0% p.a. and Staking Reward: 2.0% p.a. PR Newswire UK. PR Newswire UK
Deka has launched the Deka Future Energy ESG UCITS ETF (D6RD). The new ETF is listed on the Deutsche Boerse and Frankfurt Stock Exchange with a total expense ratio of 0.55%. ETF Stream
DWS has launched the Xtrackers ESG Eurozone Government Bond UCITS ETF (XZEB) and the Xtrackers ESG EUR High Yield Corporate Bond UCITS ETF (XZHE). Both products are listed on the Deutsche Boerse. ETF Stream
THE AMERICAS
In Canada, Purpose Investments has launched the actively managed Black Diamond Impact Core Equity Fund (BDIC CN) on the Toronto Stock Exchange with a management fee of 0.95%.
The fund is sub-advised by Toronto-based Black Diamond Asset Management, a specialist in sustainable investing. ETF Strategy
In the U.S., new entrant mutual fund firm Matthews launched three actively managed ETFs: Matthews China (MCH), Matthews Asia Innovators (MINV) and Matthews Emerging Markets (MEM).
America’s first leveraged single-stock ETFs debuted last Thursday, as AXS Investments launched eight ETFs that allow investors to make inverse or leveraged bets on single companies such as Tesla Inc., Nvidia Corp. and PayPal Holdings Inc.
The firm is also acquiring Tuttle Capital’s six funds, among them the Tuttle Capital Short Innovation ETF (ticker SARK), which bets against Cathie Wood’s flagship strategy. Bloomberg
In the world of niche thematics, Toroso Investments is planning to launch the “The God Bless America ETF” which will be actively managed and will exclude companies the firm deems “activist.”
It will invest in U.S.-listed companies with a “track record of creating American jobs,” and will trade under the ticker YALL. Bloomberg
Advisors Asset Management launched the AAM Transformers ETF TRFM to target companies with the potential to transform consumer behaviour, technological innovation and the global economy.
RiverNorth Capital Management and TrueMark Investments launched the RiverNorth Enhanced Pre-Merger SPAC ETF SPCZ, an actively-managed fund that invests in pre-merger securities of special purpose acquisition companies, according to Marketwatch.
Full List of U.S. ETF Launches:
Flows
Flows into global ETFs nearly halved in June, from €71.9bn in May to €35.7bn with the drop mainly attributable to fixed income, where buying has fallen from $35.3B to $3.0B.
Flows into European registered equity ETFs totalled €1.3bn last month, taking year-to-date flows to €44.9bn. The month had just two weeks of positive flows, with the last two weeks pervaded by outflows, which climbed to €959m.
US equity outflows totalled €769m, with year-to-date gains up at €14.4bn. Meanwhile, £741m flowed out of financial ETFs, bringing total year-to-date outflows for the asset class to €2.3bn.
Chinese and world equities were favoured by investors, with products gaining €1.8bn and €1.4bn respectively.
Healthcare was the most popular sector allocation for a third month in a row, with $1.5B added. Tech flows followed, with $0.8B added, while utilities also saw positive flows ($0.4B).
At the other end of the scale, financials continued to be sold, with $3.6B out, while energy outflows accelerated (-$3.0B).
Flows into sustainable ETPs picked up in June, with $2.3B added across US- and EMEA-listed products, according to iShares and Amundi.
Noteworthy
Dublin based financial services firm Waystone is the newest entrant in the growing area of ETF white-label providers.
Their newly launched arm, Waystone ETFs, will target large asset managers looking to make headway in the ETF space, and will offer its white-labelling solutions alongside customised standalone platforms.
HANetf was the only white-label issuer in Europe to offer ETFs, however, the past few weeks have seen both Leverage Shares and Iconic Funds announce white-labelling ambitions on the ETP side.
In a recent interview, Waystone ETF CEO Paul Heffernan said, “we will provide our institutional framework to wrap that strategy in an ETF, leveraging our know-how to conquer the ETF market.” Competition is hotting up! ETF Stream
The European Securities and Markets Authority (ESMA) has launched an industry consultation over a possible amendment to the cash penalty process under the Central Securities Depositories Regime (CSDR).
The proposals would mean central securities depositories (CSDs) would become responsible for collecting and distributing all types of penalties including those for settlement fails related to cleared transactions.
According to ESMA, CCPs have expressed strong views that CSDs should take on the responsibility for cleared transactions, citing added costs and complexities around the current structure. ETF Stream
Don’t knock mutual fund to ETF conversions. Dimensional Fund Advisors’ decision to convert a number of mutual funds into ETFs has been reward after the first four such vehicles pulled in $4.2bn in a year even while their mutual funds bled $14bn.
The firm has launched 17 ETFs since first rolling out the converted vehicles in November 2020. Dimensional’s suite of 24 ETFs collectively attracted $14bn during the year ended May 31 in a year where ETF flows have stalled.
Altogether, the ETF suite had $58bn in assets as of the same date. Pretty impressive. Ignites
Additional reads
Down under, NAB Private Wealth and BlackRock have teamed up to launch a new “dedicated ETF centre” which will feature “ETF-related educational content” to help investors looking for “better value and guidance”. Investor Daily Australia
UnitPlus, Vodeno and Aion join forces to make direct payments with ETF investments possible. Finextra
VanEck is warning that bank fees are “significantly eroding” what little of its Russia ETF’s (RSX) value remains. Bloomberg
In case you missed it
The most overdue book ever?
London’s Tooting library recently received an anonymous package from Canada which included a returned book after 48 years and 107 days.
The calculated overdue fine of overdue fine of £6,170.85 was thankfully waived for the retired judge who eventually admitted to the return. And award-winning stache on the cover to boot. BBC
