Next week sees the UK enjoying a four-day weekend, with celebrations for the Queen’s Platinum Jubilee giving the country an extra couple of days off. We are going to celebrate Her Majesty by taking a couple of days off and not produce a newsletter next week. We will be back to normal, taking down the bunting and having eaten all the cake, for the following week.
This week, however, we have posted research from Strategas, whose Todd Sohn commented on what he describes as ‘the washout in high growth names and their related funds…’ noting that they dominate the news.
“We’re amazed that the performance spread between ARKK and the Energy sector (XLE) hasn’t resulted in more aggressive inflows to the Energy space,” he says.
“Of course, time frame matters (e.g. ARKK has outperformed since inception, but not over more recent years), but we’d note that since the March 2020 equity market bottom, the ARK family of actively managed funds (eight ETFs) has taken in +USD2 billion more than the entire Energy equity ETF space (over 60 ETFs).”
The UK also has a new ETF research provider in the form of financial platform Hargreaves Lansdown which is launching a new service. Hargreaves Lansdown is one of the biggest financial services firm in the UK so offering ETF research is a significant step, recognising the growing importance of ETFs in the UK.
Franklin Templeton’s Jason Xavier made it clear why ETFs should be a central part of the investment offering everywhere, with his insights on how ETFs have performed during the recent market excitements.
In this unprecedented situation, ETFs held their own, he says.
ETFs remained liquid for longer than their mutual fund peers, Xavier writes. “Secondary market activity in Russia- or Eastern Europe-focused ETFs remained possible well after some mutual funds had been forced to gate. In fact, ETF prices on US or European exchanges were used as one indicator to gauge the value of Russian equities held in mutual funds as the Moscow exchange was closed,” he says.
Beverly Chandler, managing editor, ETF Express
Companies in this issue
Brown Brothers Harriman
Harbor Capital Advisors
Principal Global Investors
SS&C Alps Advisors