ETF NEWS - ULTUMUS

Cantango-buster from BlackRock

Written by Ultumus | 17 August 2018

China

HuaAn lists A share ETF
HuaAn Asset Management, a Shanghai-based asset manager, is listing a new ETF in Shanghai that tracks the MSCI China A Shares Index. The Huaan MSCI China A-share International ETF Feeder Fund (512860) joins a rapidly growing number of China-based ETFs that offer foreigners exposure to the newly indexed China A shares companies.
From what we can tell, the new listing is structured as an international feeder fund version of the company's existing MSCI China A Shares index tracker, which trades at an average 52 week discount of -2.6%.
London
BlackRock lists cantango-busting commodities fund
Fresh off the back delisting a commodity ETF in the US, BlackRock is listing a new commodity ETF in the UK that tries to mitigate the impact of contango that usually dog commodity ETFs.
The iShares Bloomberg Roll Select Commodity Swap UCITS ETF (ROLL, ROLG) will track a Bloomberg commodities index that is explicitly designed to "choose futures contract[s] showing the most backwardation or least contango," the index factsheet says. ROLL will use swaps to track the index, as is common for commodities ETFs. Judging by BlackRock's prospectuses for its other European commodity trackers, we suspect the swap counterparty will be UBS. ROLL will charge 0.28%.