Beverly Chandler

PwC, in conjunction with the International Forum for Sovereign Wealth Funds (IFSWF) and One Planet Sovereign Wealth Fund Network (OPSWF), has published their new report on sovereign wealth funds and the green energy transition.

A new monthly column on the crypto markets and ETF/ETP flows, brought to you by CoinDesk Indices, Trackinsight and ETF Express.

It was a busy week for non-North American ETF launches with new offerings based on AI, Saudi Arabian bonds and Aerospace.

First Trust has announced the launch of the First Trust Indxx Global Aerospace & Defence UCITS ETF (MISL) on the London Stock Exchange.

Maples Group Partner Deirdre McIlvenna writes that the last decade has seen an explosion in the growth of ETFs across the globe, with global AUM of USD2.7 trillion in 2004 growing to over USD13.3 trillion in 2024.

Latest news from Direxion, winner of Best US Equity ETF Issuer ($1bn-$10bn) in this year’s ETF Express US ETF awards, is that it has launched two new pairs of 2X leveraged bull and -1x bear ETFs, offering exposure to Berkshire Hathaway Inc., or Palantir Technologies Inc.

US financial advisers expect their allocations to ETFs to surpass mutual funds in the next two years, according to Cerulli Associates’ US office.

Home run sees fixed income ETF enjoy significant growth Last December saw SS&C Alps Advisors launch the ALPS Smith Core Plus Bond ETF (SMTH) in partnership with Smith Capital Investors. March saw our last interview with the SS&C ALPS team, which revealed assets were up to USD600 million. https://etfexpress/2024/03/15/ssc-alps-advisors-see-growth-in-active-etf-offerings/ Now, speaking with Ryan Duffy, co-head of business development at partner firm Smith Capital Investors, that product stands at USD1.3 billion, having enjoyed significant growth over 2024. “It’s been a home run,” he says. Smith Capital, founded by Gibson Smith, has USD5.3 billion in assets. Duffy explains that Smith was previously CIO of fixed income at Janus before leaving to establish his own firm. The boutique follows a bottom up, fundamental investment style as an alternative to industry peers, who have more of a top-down approach, overweight to derivatives. Smith Capital works with SS&C on four offerings, including three mutual funds. One, the ALPS Smith Total Return Bond Fund, pursues a similar investment outcome to the ETF, and with USD3.2 billion in assets is designed to offer risk adjusted total returns. “The funds are not clones,” Duffy says. “Each is nuanced and the ETF is aimed at clients who are looking for risk-adjusted returns and capital preservation in a fixed income product. “Our process focuses on two core tenets: security selection in credit markets and sector rotation through market cycles.” The majority of the portfolio is in US domestic fixed income and all is in USD. The primary driver for launching an ETF was to embrace innovation and align the firm’s offerings with market demand. “There is a demand for more transparency, intraday liquidity, and operational efficiency, which ETFs help solve for,” Duffy says. The firm’s ETF product and mutual fund lineup are aimed at investors with income needs, offering what he calls ‘world class income solutions’. Duffy says that the firm is ‘agnostic’ to fund vehicles, and investors can choose between their mutual fund or ETF offerings depending on their investment needs. “The demand is there, so it’s pretty exciting,” he says. No further ETFs are planned, although the firm is open to launching future products. The mutual fund and the ETF carry the same fees as the firm felt it was important to eliminate any conflicts of interest, allowing the adviser to decide which wrapper works for which clients. “The bulk of asset raising is in the adviser channel, as we believe in the power of relationships and working to be a trusted partner,” Duffy says.

Bitcoin’s meteoric rise to over USD100,000 landmark price earlier this month is driving a surge in inquiries from new investors at Europe’s leading digital assets fund manager Nickel Digital Asset Management (Nickel).

Four months into her new job as Director, ETF listings at Cboe Europe, Hetal Patel is still revelling in the excitement of joining the pan-European exchange operator as it looks to expand its presence in the listing and trading of ETFs in the region.