Welcome back to the ETF Express newsletter – we have been away for two weeks from the newsletter schedule but have posted a huge amount of material on the site. The top story this week is the launch of the nominations for service providers’ stage in the ETF Express US awards. Once we have the top three nominated firms in each category, the voting will open for ETF issuers – data provided by Trackinsight – and service providers for the US awards.
Crypto ETPs in Europe have enjoyed extraordinary success over recent years but controversy has arrived in the sector with the publication of the ETC Group’s paper entitled ‘Why structure really matters in crypto ETPs’.
Our piece details the accusations, concerns and reactions of many of those involved in the sector. The driver behind the paper is ETC Group’s CEO Bradley Duke’s concern that any default in crypto ETPs will cause unwarranted and overzealous regulatory attention. Read the piece now to make up your own mind on the debate.
Other features over the last two weeks have introduced us to a new ETF issuer in the US, F/m, whose President, CIO and Co-Creator of the US Benchmark Series, Alexander Morris, talked to ETF Express about his firm, which has seen rapid growth since launch – memorably described by Morris as a bit like being on a skateboard with a rocket attached – and has now entered the ETF arena.
We also spoke with the new team at Alliance Bernstein in the US, Noel Archard and Anita Rausch, who are gearing up the firm for its first ETF launches. The firm has filed with the SEC to launch its first two products: an ultra-short income ETF and a tax aware short duration muni product.
“Fixed income happened to be the strategy that made sense given where the market is – rates are going up and there is a little bit of portfolio repositioning going on. AB also has strong expertise in the muni space,” Archard says.
ETFMG’s Alex Gordon also spoke to ETF Express, telling us that cybersecurity has moved from a nice to have to a need to have basis, detailing its ETF based on that sector, HACK.
“The cyber threat theme is one that makes the most sense as an elevator pitch right now,” Gordon says. “These companies stand to benefit so much from the situation with Russia and Ukraine and more recently China and Taiwan.”
And finally, we have data, two lengthy pieces from Elisabeth Kashner, Vice President, Director of Exchange-Traded Fund Research and Analytics at FactSet, who gave us a run down on the US’s ETF industry in the first half, and then a second note, commenting that there is a drive to cheap going on in the industry as the earlier bear market sentiments began to have their effect. Fee compression saved US ETF investors USD90.4 million since the end of 2021, based on June 30 ETF asset levels, she says.
Beverly Chandler, managing editor, ETF Express
Companies in this issue
Argent Capital Management
HSBC Asset Management
Miami International Holdings
Schwab Asset Management