The Week in ETFs

w/e 17th April 2020

Investors pull €22bn from European ETFs in worst month for funds. BlackRock suffered outflows of €6.6bn in March. UBS had even larger outflows of €7.3bn, while DWS suffered outflows of about €4.8bn. Vanguard, despite having only 26 ETFs in Europe gathered inflows of €1.9bn in March. Vanguard was the only top-10 ranked European ETF manager to attracted significant inflows, outperforming competitors by a clear margin.

Vanguard has surged ahead of its largest rival BlackRock, gathering more than three times the amount of new money across its global exchange-traded-funds business so far this year. Data from Vanguard show the Pennsylvania-headquartered asset manager pulled in $47.1bn of new ETF assets worldwide between January and the end of March. This was compared to the $13.8bn which BlackRock said its iShares division garnered over the same period.

Amundi moves into fourth spot in European ETF issuer AUM rankings, overtaking UBS. UBS lost €7.3bn in net flows last month, bringing its AUM to €45.8bn by the end of last month while Amundi saw €2.7bn outflows taking its AUM to €46.5bn, leapfrogging the Swiss asset manager.

Australia's ETF market value drops 10% in March amid virus downturn

BlackRock expects the Covid-19 crisis to 'accelerate' ETF uptake. Stephen Cohen says ETFs have passed “yet another test” in recent weeks, as they performed “exactly as they are designed to” during the ongoing bout of turbulence and believes the experience during this crisis will accelerate ETF adoption around the world

ETF Securities has seen record inflows into its Physical Gold ETF (GOLD) with its assets under management doubling to $1.6bn since July 2019

In Europe BlackRock and Invesco gold ETCs surpass $10bn milestone following inflows worth $1.5bn and $1.7bn, respectively, accounting for 17.5% and 22.2% of the total funds

In the Thematics space, Direxion files for a pure play working from home ETF, under the suitably titled ticker WFH. The fund will track the Solactive Remote Work Index, which comprises companies that specialize in providing work-from-home-friendly products.

BNY Mellon debuted zero percent fees in the US following the launch of the BNY Mellon U.S. Large Cap Core Equity ETF (BKLC) with a 0% expense ratio. The BNY Mellon Core Bond ETF (BKAG) is also set to launch soon with a 0% expense ratio

J.P. Morgan launched a new ETF on NYSE Arca that’s designed to provide exposure to the U.S. mid-cap equity market using an indexed approach. The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) is the latest fund in J.P. Morgan Asset Management’s BetaBuilders group

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