<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=4496002&amp;fmt=gif">

Blackrock goes green

London

Lyxor gets the GIST

Lyxor gets the gist of the fee war, and is listing the cheapest global inflation-linked bond ETF in Europe. The Lyxor Core Global Inflation-Linked 1-10Y Bond DR UCITS ETF (GIST) will provide broad based exposure to the global inflation linked bond market via a Bloomberg Barclays index. GIST’s  underlying bonds will be overwhelmingly American.

The competing product from iShares charges more than double what GIST will.

 

BlackRock rolls out low carbon funds

BlackRock is launching six new “sustainable” ETFs in London that aim to give “low carbon” portfolios.

  • iShares MSCI Europe ESG Enhanced UCITS ETF (0.15%) EEUD
  • iShares MSCI EMU ESG Enhanced UCITS ETF (0.15%) EEUD
  • iShares MSCI World ESG Enhanced UCITS ETF (0.20%) EEWD
  • iShares MSCI Japan ESG Enhanced UCITS ETF (0.20%) EEJD
  • iShares MSCI EM ESG Enhanced UCITS ETF (0.23%)
  • iShares MSCI USA ESG Enhanced UCITS ETF (0.10%) EEDS

With its partnership with MSCI, the new indexes will exclude the usual suspects of thermal coal, oil sands, tobacco, weapons, porn and gambling companies. Companies that survive the filter will then be weighted for low carbon emissions and MSCI-given ESG scores. BlackRock believes that the new listings will have 30% less carbon emissions than their market weighted counterparts.

 

Analysis – BlackRock reacts to Trump

The ESG ETF roll out in Europe has a number of drivers: the intergenerational transfer of wealth; Trump’s election; Europe’s larger appetite for this type of product; and an opportunity to tap pension funds, which have been reluctant to directly use ETFs. (Pension funds don’t need intraday liquidity and would prefer to buy funds at NAV, as open-ended funds always allow). 

Different ETF providers list ESG products for different reasons. But for BlackRock, one gets the impression that it’s mostly a reaction to Trump’s election. Europeans’ higher appetite for ESG; greenhouse gas emissions driving global warming; millennials inheriting their parents money – this was all well-known before 2016. Yet most of BlackRock’s ESG funds have come since then. For us, these listings are best understood as political in origin. However, as they are low cost and provide a useful service to the market, they should be welcomed.

 

Taiwan

Fubon lists CSI 500 tracker

Taiwanese ETF giant Fubon is listing a new China small cap tracker. The Fubon Multiple Income II ETF Umbrella Fund-Fubon China CSI 500 Index ETF (00783) will track the CSI Smallcap 500 Index.

 


Contact Us

• Contact us

Have questions about this?

Speak to one of our ETF data specialists about how this applies to your fund range.

Get in touch

Bernie Thurston

Bernie Thurston is the founder and CEO of Ultumus, a leading provider of ETF and index data, calculation, and workflow solutions. With over 20 years of experience in financial technology, Bernie has been at the forefront of index and ETF innovation since 2003.

His finance career began at Markit, where as Managing Director for Equities he designed and developed products for index and ETF composition and dividend forecasting from 2003 to 2011. He then founded and led DeltaOne Solutions as Managing Director, building it into a global provider of index and ETF trading data and technology services. The company managed over 100,000 multi-asset class products before being acquired by Markit in 2015.

Following the acquisition, while working for an ETF issuer, Bernie identified fundamental issues in how index and ETF data was represented across the industry. This led him to found Ultumus in 2016, building solutions for ETF primary market operations. Under his leadership, Ultumus has grown into a market leader serving major financial institutions globally, with its ETF Order Management System (OMS) supporting create and redeem workflows worldwide and its PCF platform calculating and distributing portfolio composition files for ETF issuers across every major market.

Bernie sold Ultumus to SIX Group in 2021, where it continues to expand across Europe, North America, and Asia-Pacific. Known for building lasting teams and leveraging cutting-edge technology, Bernie is focused on establishing Ultumus as the backbone of the global index and ETF industry through standardisation and automation.

Related posts

Search ULTUMUS and NUVO PRIME form strategic alliance leveraging latest cloud-based technologies.
Clever Copycat Search