| | Will structured ETF products disrupt annuity market?
This week’s newsletter brings you an interview with Bruce Bond, founder and CEO of Innovator Capital, which has seen USD1.6 billion come through its doors since launch in August 2018. The money is coming into the firm’s structured product within an ETF format, which gives investors a capped return on the upside but a level of protection on the downside. Interviewed in the previous week's newsletter, GTS’s Reggie Browne explained that these products could be used in the annuity market, a market that is worth USD3 trillion.
News came this week of BMO’s decision to close its European ETF business. With just EUR608 million in 13 ETFs, the firm clearly felt it hadn’t reached critical mass. Will consolidation be a continuing trend going forward in the ETF industry as fee pressures make it harder for firms to create and manage smaller ETFs?
We also have an interview with Goldman Sachs Asset Management’s head of the European ETF business, Peter Thompson. Thompson believes that the European ETF market is 10 years behind the US business. “We are expecting double digit growth and we see that continuing for a while,” Thompson tells Philippa Aylmer.
Finally, voting is now open for the ETF Express European Awards, in association with Morningstar. Please vote – Morningstar has pre-selected firms in each category and the winners are selected by the majority of votes.
Please follow this link to vote…
Beverly Chandler,
Managing Editor, ETFexpress
Companies in this issue
AgioFunds
BlackRock
BMO
Goldman Sachs Asset Management
Innovator Capital
Lyxor
Pacific Global
| | ADVERTISEMENT | | | | | | BMO to exit European ETF industry | | Wed | 27 Nov 2019, 17:32 | | Consolidation looms large again with Canada’s BMO announcing it is to close down its 13 UCITS ETFs European range in January next year. The range reached assets of EUR608 million since entering the European market in 2015. |
| | | | | | | | Innovative ETFs raise serious assets for structured product ETFs | | Mon | 25 Nov 2019, 14:33 | | From a standing start in August of 2018, Innovator Capital Management has raised USD1.6 billion into its Defined Outcome ETFs, designed to offer investors exposure to an index with a cap and a downside buffer limiting potential losses to minus 9 per cent, 15 per cent or 30 per cent. |
| | | | Foreside to acquire fund distributor Quasar Distributors | | Tue | 26 Nov 2019, 11:02 | | Foreside Financial Group (Foreside), a provider of regulatory and compliance service and technology offerings to clients in the global asset and wealth management industry, is to acquire US Bancorp’s mutual fund and exchange-traded funds (ETFs) distribution business, Quasar Distributors. |
| | | | ETF Express European Awards 2020 - Vote now! | | Wed | 27 Nov 2019, 09:47 | | We are conducting our annual survey of the ETF Express readership to assess the best ETF providers and service providers from 31 October 2018 to 1 November 2019 for the ETF Express European Awards 2020. |
| | | | ADVERTISEMENT | | | | | | Global ETF launches 21-28.11.19 | | Thu | 28 Nov 2019, 12:03 | | This week’s ETF launches include two new income-focused funds from Pacific Global ETFs which are designed to complement the firm’s flagship offering, the Pacific Global US Equity Income ETF. Elsewhere, BlackRock launched a new iShares ETF on Xetra offering access to the performance of fixed and floating rate US dollar-denominated government or quasi-government emerging market bonds. Also new on Xetra this week is a Japanese equities ETF from Lyxor, while AgioFunds TFI debuted a new fund based on the WIG20shiort index on the Warsaw Stock Exchange… |
| | | | | | | | | | | For Old Blue Eyes, these are his ‘kind of ETFs’ While many commentators still think Passive Investing, is indeed just that, nothing could be further from the truth. To see why, consider the observation that the current churn rate of the S&P 500 is at around 5 per cent per year, which suggests that 50 per cent or more of the companies in the index will be replaced over the next 10 years. |
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