A world of commodities

ETF Express Newsletter for 30.7.21

A little run of commodity-based ETF product launches has resulted in our top piece in this week’s newsletter. Commodity industry veteran firms WisdomTree and LGIM, who share their ETC roots, have both produced new products with Nitesh Shah, Director of Research, Europe, WisdomTree, commenting: “Broad based commodities demand is definitely on the up with individual segments in commodities presenting more of a mixed picture than last year.”
Mark Northway, investment manager, Sparrows Capital, reveals that as a firm they have seen increased interest in commodities as a by-product of inflation concerns which, he says, have been front and centre over the past 12 months. 
Inflationary fears, a search for yield and a return to value are driving ETF launches at the moment, and we have an interview with the US’s Mark Hillman, a large cap value active manager, who has taken his first step into ETF waters, by going into a partnership with SS&C ALPS Advisors. Hillman doesn’t want to find companies that no-one else knows, he wants to find companies that everyone knows with sustainable competitive advantages in their sector, which are going through a period of being undervalued.
Franklin Templeton’s David Mann has done the brave thing and revisited his predictions from the opening of 2021, to contrast and compare with where we are now. Mann predicted that active ETFs would see huge growth over 2021 and he has been proved right with total active ETF AUM currently at around USD263 billion, representing roughly 5 per cent of total ETF AUM in the US. The total active ETF AUM is up almost USD100 billion since the end of 2020 and USD350 billion of active ETF assets by the end of the year is in play, he says.
All types of ETFs have been nominated by those clever people at Bloomberg for our third outing of the US ETF awards. Now is your opportunity to place your vote so that we can find the best of the best – please follow this link to vote in the ETF Express US ETF Awards.

Companies in this issue

AJ Bell
Aptus Capital Advisors
BNP Paribas
Franklin Templeton
Hillman Capital Management
Impact Shares
Indxx Global
Purpose Investments
Sparrows Capital


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