New equity ETF from HSBC on Xetra: access to sustainable companies from emerging markets
November 11, 2022-- A new exchange-traded fund issued by HSBC Asset Management has been tradable on Xetra and via the Frankfurt Stock Exchange trading venue since Friday.
The HSBC MSCI Emerging Markets Small Cap ESG UCITS ETF focuses on small-cap companies domiciled in emerging markets.
The investment strategy focuses on increasing the weighting of companies that not only have a good ESG profile, but also have a proven track record of improving it.
The ETF excludes companies that are involved in serious ESG controversies or doing business in arms and nuclear weapons, adult entertainment, alcohol, gambling, nuclear power, energy from thermal coal, fossil fuels and tobacco.
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Source: Xetra
ETF growth in Europe attracts new white-label providers
November 9, 2022--Axxion and Waystone among new competitors to HANetf in Europe
Axxion and asset management servicing group Waystone have both launched ETF businesses recently, while exchange traded product specialist Leverage Shares and cryptocurrency-focused asset manager Iconic Funds have also entered the white-label space.
Jose Garcia Zarate, Morningstar's associate director for passive research, said the arrival of more white-label providers was a sign of the growing popularity of the ETF wrapper among investors.
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Source: ft.com
New equity ETF from First Trust on Xetra: access to high-dividend US companies
November 8, 2022--A new exchange-traded fund issued by First Trust has been tradable on Xetra and via Börse Frankfurt since Tuesday.
The First Trust US Equity Income UCITS ETF gives investors access to the performance of US companies that are part of the Nasdaq US High Equity Income Index.
The companies are selected on the basis of factors such as liquidity, dividend yield and other quality criteria. Currently, the index comprises 120 securities that are mainly active in the financial sector. Other sectors include IT, consumer goods, energy and basic materials.
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Source: Xetra
New crypto ETN from Hashdex on Xetra: Access to a basket of crypto stocks considering risk parity and momentum
November 8, 2022--Since Tuesday, a new crypto ETN issued by Hashdex is tradable on Xetra and via Börse Frankfurt.
The Hashdex Crypto Momentum Factor ETP offers investors access to the performance of a basket of the twelve largest cryptocurrencies according to current market capitalisation.
Currently, these are the cryptocurrencies Avalanche, Binance Coin, Bitcoin, Carda-no, Cosmos, Ethereum, Polkadot, Polygon, Ripple, Solana, Tron and Uniswap.
The weighting considers both risk parity and momentum score, with the aim of reducing the overall volatility of the crypto basket.
The product is physically collateralised by the digital assets and is centrally cleared via Eurex Clearing.
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Source: Xetra
Hargreaves Lansdown stops offering non-sterling ETF share classes
November 4, 2022--Foreign currency share classes of funds with no sterling equivalent are unaffected
Hargreaves Lansdown has stopped offering the non-sterling share classes of exchange traded products including exchange traded funds. The change has affected around 170 products which are not denominated in sterling.
For example, prior to October 28, when the change took effect, it was offering the US share class of VanEck Vectors Video Gaming and eSports Ucits ETF (ESPO) as well as the sterling share class. But after that date investors have only been able to buy the sterling share class -VanEck Vectors Video Gaming and eSports Ucits ETF (ESGB).
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Source: ft.com
Asset managers pay vastly unequal fees for using indices
October 31, 2022--Study highlights opacity of pricing models used by providers such as MSCI and S&P Global
Index providers charge some asset managers 13 times as much as other clients for similar bundles of products and services, according to research into the opaque pricing models that could lead to higher costs for investors.
Trillions of dollars are benchmarked to financial indices, but the costs paid for access to them remains a tightly guarded secret. Index providers often bundle products and services, which makes accurate like-for-like comparisons problematic for asset managers to find.
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Source: ft.com
ECB-Euro area economic and financial developments by institutional sector: second quarter of 2022
October 28, 2022--As of October 2022, quarterly financial accounts published by European Central Bank provide more detailed breakdown of other financial institutions (OFIs)
Euro area net saving decreased to €733 billion in four quarters up to second quarter of 2022, compared with €790 billion one quarter earlier
Household debt-to-income ratio declined to 95.3% in second quarter of 2022 from 95.9% one year earlier
Non-financial corporations' debt-to-GDP ratio (consolidated measure) decreased to 77.3% in second quarter of 2022 from 79.8% one year earlier
Financial Accounts for other financial institutions by subsector
As of October 2022, the quarterly financial accounts published by the European Central Bank provide a more detailed breakdown of other financial institutions (OFIs), which, after monetary financial institutions (MFIs- i.e. banks and money market funds), constitutes the second largest financial sector in the euro area. The new breakdown distinguishes other financial intermediaries, financial auxiliaries, and captive financial institutions and money lenders.
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Source: ECB
Inflation inequality in the European Union and its drivers
October 28, 2022--Headline inflation tracks the change in the price of the average household's consumption basket. It thus masks how different individuals across society are impacted differently by rising prices. Households can face different inflation rates because their spending patterns are different. For instance, while a sharp rise in the cost of fuel increases overall inflation, a household with no car will be less affected than one with a car.
The sharp rise in inflation in the European Union since mid-2021 makes it particularly important to investigate the extent to which inflation is impacting different groups of the population differently. The main objective of this database is to document how low and high-income households face different inflation rates because of the differences in their consumption patterns, and to identify the categories of expenditure driving these differences.
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Source: bruegel.org
HSBC sharpens focus on ESG with latest European ETF offering
October 27, 2022--New article eight funds comprise two value-focused products and two dedicated to small-cap companies
HSBC Asset Management is bolstering its range of exchange traded funds with an environmental, social and governance focus with four product launches.
The HSBC MSCI World Value ESG Ucits ETF and the HSBC MSCI World Small Cap ESG Ucits ETF have already listed on the London Stock Exchange.
HSBC will list the HSBC MSCI Emerging Markets Value ESG Ucits ETF and the HSBC MSCI Emerging Markets Small Cap ESG Ucits ETF on October 28 and November 7 respectively.
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Source: ft.com
ECB-Monetary developments in the euro area: September 2022
October 26, 2022--Annual growth rate of broad monetary aggregate M3 increased to 6.3% in September 2022 from 6.1% in August
Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 5.6% in September from 6.8% in August
Annual growth rate of adjusted loans to households stood at 4.4% in September, compared with 4.5% in August
Annual growth rate of adjusted loans to non-financial corporations stood at 8.9% in September, compared with 8.8% in August
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 increased to 6.3% in September 2022 from 6.1% in August, averaging 6.0% in the three months up to September. However, this increase was driven by a one-off technical factor, without which the annual growth rate of M3 would have declined to around 5.8% in September 2022.
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Source: ECB
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