Three new exchange-traded funds listed on London Stock Exchange in January, bringing the total number of ETFs and ETPs listed on the exchange to 885 and 441 respectively.
There are now 885 ETFs (available as 1,361 lines through multi-currency offerings) and 441 other ETPs (available as 501 lines) on the London market.
GF International launched the GF International – FTSE China A UCITS ETF (LON: PRCE), the first ETF from a Chinese asset management firm based in Europe and the first ETF to track the FTSE Global China A Inclusion Index Series.
The index is a diversified market capitalisation-weighted reference for the performance of over 700 Chinese A-shares, and the sub-index most likely to be included in the FTSE Emerging Market Index when the expected Chinese market inclusion decision is made.
The ETF has a total expense ratio of 0.80%.
Chuanhui Lin, CEO of GF Fund Management, commented: “Since opening the Chinese market to international investors is no longer a question of ‘if’ but ‘how’, this ETF, the first launched by a Chinese fund manager in Europe, will have an important role to play in promoting international investment in China.
UBS listed the UBS Barclays MSCI Euro Area Liquid Corporates Sustainable UCITS ETF (LON: CBSE), offering investors access to euro area corporate bonds issued by firms with an ESG rating of BBB or higher according to MSCI’s sustainability ratings system..
The fund tracks the Barclays MSCI Euro Area Liquid Corporates Sustainable Index, co-developed by Barclays and MSCI, and designed to meet the needs of a growing investor base who are integrating ESG themes into their investments.
It is offered with a TER of 0.20%.
Andrew Walsh, Head of UBS ETFs UK & Ireland, commented: “UBS ETFs recently passed $1 billion in SRI assets under management and is able to offer investors the possibility to build a sustainable worldwide portfolio in an efficient way. A recent study by UBS into SRI investing has shown that there is no negative effect on risk and return compared to portfolios that were not screened for sustainability criteria.”
Source issued the Source Bloomberg Commodity UCITS ETF (LON: CMOD), offering exposure to over 20 different commodities through tracking the broad Bloomberg Commodity Index. The ETF provides one of the lowest cost means of accessing a broad commodity basket with a TER of just 0.40%.
The index contains components in the agriculture, energy, industrial metals, precious metals and livestock sectors and caps sector exposure at 15%, resulting in a more balanced index weighting.
“Commodity markets picked up in 2016, so it wasn’t a surprise to see new assets in broad commodity ETFs,” said Chris Mellor, Executive Director and Head of Equity Product Management at Source. “However, it is surprising how high the fees are on some broad commodity ETFs. Unlike many other providers, we disclose all fees in advance, so you can anticipate how each fund will perform relative to the index.
Total on-exchange value traded for ETFs and other ETPs in January 2017 was £33.1bn, up by 28% compared to January 2016.
There are now 885 ETFs (available as 1,361 lines through multi-currency offerings) and 441 other ETPs (available as 501 lines) on the London market.