This week has seen a notable range of new launches in the ETF world, with Grayscale launching its first ETF in Europe, 21Shares launching its first index funds in the US and US fund giant SEI taking its first steps into the ETF issuer world with the launch of four active ETFs in the US.
Financial news and market shifts might prove challenging, at the moment, but the ETF industry continues to expand. BlackRock’s fixed income report found the firm predicting global bond ETF assets will reach USD5 trillion by 2030, this week.
We also spoke with MSCI’s George Harrington on fixed income indexing in volatile markets. “The fixed income ETF market was significantly behind the equity market but has rapidly moved into a catch-up scenario, with dramatically improved inflows.” Harrington says.
We spoke with SEI twice this week – with Kevin Barr on the new ETF range and with J Womack on its relationship with Capital Group for its model portfolio business. “We are vehicle agnostic but now we see the rise of the active ETF format, which is more tax friendly; we like a format that allows the client to manage their own tax efficiently,” Womack says.
Our US correspondent, Bailey McCann, turned to the drama that lies behind Finra’s proposals for ‘complex products’.
“I think we need to see more from regulators on their thinking around some of these products,” says Nick Elward, senior vice president, head of institutional product and ETFs at Natixis Investment Managers, in an interview with ETF Express.
“There is a big difference between what you’re getting in a defined outcome product, versus something like a levered or inverse ETF. And, if investors start building complex exposures on their own, why is that safer than having them in a professionally managed ETF in a portfolio?”
Beverly Chandler, managing editor, ETF Express
Companies in this issue
State Street Global Advisors