This was a big week for the Evolve Funds Group, which followed long term ESG trends by adding a series of carbon neutral ETFs to its portfolio, the Evolve CleanBeta series that tracks the performance of the S&P/TSX 60 and S&P 500 Index. Evolve also listed the Evolve FANGMA Index ETF (TECH) on TSX, providing investors with exposure to the equity securities of tech titans such as FANGMA Index, Alphabet Inc, Amazon Inc and Microsoft Corp. Sticking with the technology, CSOP issued it first thematic equity product this week, the CSOP Global Cloud Computing Technology Index ETF, which tracks the Solactive Global Cloud Computing Technology Index. Elsewhere, SoFi added the SoFi Weekly Dividend ETF following the performance of the SoFi Sustainable Dividend Index and providing weekly dividend payment to shareholders. Finally, Simplify listed the Simplify Interest Rate Hedge ETF (PFIX) that seeks to provide a hedge against a sharp increase in long-term interest rates.
New Global ETF Launches
VanEck offered a new take on investing in the digital assets space this week, with the listing of the VanEck Vectors Digital Assets Equity UCITS ETF on the LSE which gives investors diversified access to companies operating in the crypto and blockchain industries rather than actual cryptocurrencies. LGIM debuted a Global Thematic fund aimed at giving UK investors access to multiple investment themes such as technology and energy. Elsewhere, iShares turned its eye to Germany, launching three new ETFs on Xetra and Borse Frankfurt providing investors with access to the most important benchmarks of the German equity market. In the US, Schwab Asset Management listed the Schwab International Dividend Equity ETF on the NYSE Arca seeking to track the Dow Jones international Dividend 100 Index. Finally, Van Harbor Capital Advisors entered the ETF market this week, announcing the launch of the Harbor Scientific Alpha High-Yield ETF and the Harbor Scientific Alpha Income ETF in the autumn.
Sustainability and ESG investing dominated ETF launches this week. Invesco expanded its thematic environmental suite by listing the Invesco MSCI Green Building ETF focusing on the entire green building ecosystem, and BlackRock debuted two Paris Aligned iShares UCITS ETFS designed to capture opportunities arising from the transition to a lower carbon economy. Amundi also added fixed income exposure to its Climate Paris Aligned ETF range with the Amundi iCPR Euro Corp Climate Paris Aligned PAB – UCITS ETF DR. Digital assets also featured again this week with WisdomTree debuting the WisdomTree Ethereum ETP (ETHW) on Borse Xetra and Six, a low priced physically-backed ether ETP. Elsewhere investors turned their attention to Asia as Qontigo licensed the EURO STOXX 50 Index to KBSTAR ETF to serve as underlying for an ETF listed on the Korea exchange. Finally, FinEx launched the Fallen Angels ETF, allowing investors to capture risk premium in USD bonds that have recently been downgraded from investment grade to high yield while belonging to the relatively attractive BB+ to BB- rating segment.
Ethereum was a key focus of ETF launches this week, with the CI Galaxy Ethereum fund now trading on TSX allowing investors to invest directly in ether using the Bloomberg Galaxy Ethereum Index, and Coinshares teaming with 3iQ to launch the 3iQ CoinShares Ether ETF, providing exposure to the daily price movements of the USD price of ether. ESG investing remains popular, with UBS listing the UBS ETF (LU) Bloomberg Barclays MSCI Euro Area Liquid Corporates Sustainable UCITS ETF (EUR) A-acc giving investors access to the performance of euro-denominated, fixed-rate corporate bonds from the eurozone with an improved ESG profile. Elsewhere, Russian ETF provider FinEx launched the FinEx Developed Markets ex-USA UCITS fund tracking the Solactive GBS Developed Markets ex United States 200 USD Index, and Lyxor listed its first ETF on the Tel Aviv Stock Exchange, the Lyxor Robotics & AI UCITS ETF. Finally, in a nod to a post-Covid economic recovery as lockdowns ease, AdvisorShares listed two ETFs with dedicated exposure to the hotel and restaurant and food service industry, the AdvisorShares Hotel ETF (BEDZ) and the AdvisorShares Restaurant ETF (EATZ).
Digital asset-focused ETFs stole the show again this week, with CoinShares launching the CoinShares Physical XRP (XRPL) providing investors with passive exposure to XRP, the native token unit on the Ripple network. The first WisdomTree Bitcoin ETN is now trading on Xetra, tracking the performance of bitcoin, and Horizons ETFs debuted the BetaPro Bitcoin ETF (HBIT) and the BetaPro Inverse Bitcoin ETF (BITI) on TSX, providing long and inverse exposure to the Horizons Bitcoin Front Month Rolling Futures Index. ETC Group also listed the first Litecoin ETP on Xetra, giving investors access to the performance of Litecoin without having to set up crypto wallets. Elsewhere, several industry-specific ETFs were listed this week, with HANetf debuting a new UCITS ETF tracking the performance of global stocks deriving revenue from online retail. Global X launched the Clean Water Industry ETF providing investors with access to companies active in clean water provision, and TD Asset Management launched a new ETF giving investors exposure to the global healthcare market. Lastly, sustainability remained a key theme of the week, with Evolve filing a preliminary prospectus for the world’s first ETFs to bring carbon neutrality to traditional indices, and Global Palladium Fund listing GBP share classes for physically-backed metal ETCs on the LSE giving investors exposure to metals with a key role in the transition to a net zero carbon economy.
This was a big week for European digital asset investment house CoinShares - which partnered with 3iQ to launch the 3iQ CoinShares Bitcoin ETF on the TSX, and also launched the CoinShares Physical Litecoin (LITE), bringing the company's total of investment products to seven. Following the digital assets trend, SEBA Bank AG listed a suite of digital assets-based ETPs on SIX Swiss Exchange, consisting of bitcoin and ether Tracker Certificates and the first CHF currency-hedged bitcoin tracker in the market. Space returned as a theme this week, with Harvest debuting the Harvest Space Innovation Index ETF on TSX, providing Canadian investors with access to the growing space industry sector. Other newcomers include TrueMark's new structured outcome ETF APRZ providing investors with exposure to the S&P 500 Index, and Vanguard’s first actively managed Ultra-Short Bond ETF, offering low-cost diversified options for investors seeking income and limited price volatility.
Sustainability was once again the theme of the week, with the listing of two new ETFs focussed on the hydrogen sector: the VanEck Vectors Hydrogen Economy UCITS ETF on the London Stock Exchange, and the Direxion Hydrogen ETF (HJEN) giving exposure to clean hydrogen economy companies. UBS Asset Management launched a suite of equity ETFs aligned with the standards of the Paris Climate Agreement, and Amundi listed two new ETFs with an ESG focus on Xetra. Blackrock also expanded its iShares fixed income ETF range with two new funds providing exposure to green bonds, and GraniteShares launched the world’s first leveraged single stock ETPs on NIO, an electric vehicle maker known as the ‘Chinese Tesla’. Elsewhere, ARK turned its attention to the skies with its Space Exploration & Innovation ETF (ARKX) focussing on companies engaged in space exploration and innovation. Finally, crypto remains key with a new VanEck ETN listed on Xetra and Borse Frankfurt that provides investors with access to ether without having to set up a crypto wallet.
A steady week of new launches in very different sectors saw CI Global Asset Management debut the the CI Gold Bullion Fund, which invests in bullion to accurately reflect the performance of the price of gold. HANetf listed the Global Online Retail UCITS ETF, which is focused on the global online retail sector, on Xetra, while Leverage Shares expanded its range of ETPs to 65, adding a 'fintech disruptors' fund and a 3x Tesla ETF to its offering. Other newcomers include UBS Asset Management’s UBS ETF (LU) Solactive China Technology UCITS ETF, the first currency-hedged UCITS ETF tracking the 100 largest tech-driven Chinese companies, and Invesco’s Nasdaq Next Generation 100 UCITS ETF providing investors with access to the next generation of innovators. Finally, BNP Paribas AM followed up on the previous weeks’ sustainability trends by launching the BNP Paribas Easy EUR High Yield SRI Fossil Free UCITS ETF.
This week’s launches include a raft of ESG focused ETFs. UBS Asset Management debuted a climate neutral UCITS fund applying sustainability criteria to the S&P 500 equity universe, and Invesco launched the first ETF tracking the new FTSE All Share ESG Climate index. FlexShares and Lyxor International Asset Management both listed two new ESG ETFs on Xetra and Borse Frankfurt. Elsewhere, VanEck expanded its global offering into the Latam market with a new ETF in Peru – the Fondo Bursátil VanEck El Dorado Perú ETF. Another newcomer in the US was the Hartford Fund’s HLGE ETF, providing access to the 'longevity economy'.
UBS Asset Management launches first UCITS ETF to apply strict sustainability criteria to S&P 500 equity universe
UBS Asset Management (UBS AM) has launched the world’s first ETF to apply strict ESG criteria to the S&P 500 equity universe. The UBS ETF S&P 500 ESG Elite UCITS ETF is intended for investors who require US large cap exposure with a strong sustainability profile.