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New Listings – The Week the ETP Industry Remembered That Subtlety Exists

Every so often the new listings queue calms down. No 5x gold. No quantum frontier anything. Just a handful of grown-up products behaving like grown-ups. I found it strangely refreshing, and slightly suspicious.

Pictet AI Enhanced World Equity ETF (PQWP, London Stock Exchange)

Most “AI” funds on this list are simply funds that own companies with the letters A and I somewhere in their investor deck. This one is different. Pictet's new world equity ETF doesn't invest in AI companies so much as let AI do the investing, using the technology to sift the global equity universe and tilt the portfolio, rather than handing stock selection to a committee of humans with strong opinions and a Bloomberg terminal.
It is, in other words, a fund that has quietly automated the fund manager. Nobody has said this out loud yet, but I suspect somewhere a fund manager is reading the prospectus more carefully than usual.


Innovator Equity Defined Outcome ETFs, 10 and 15 Buffer, August series (DDTG and DDFG, NYSE)

Two products, same underlying, same launch day, same August outcome period. The only difference is how much pain you are willing to absorb before the fund starts absorbing it for you. DDTG cushions the first 10% of losses. DDFG goes further and cushions the first 15%.

It is, essentially, a menu. Would you like a small amount of protection or a medium amount, both capped on the upside in exchange for the privilege? Somewhere a product team debated whether to also launch a 20% version and decided that was a conversation for a later quarter.

HSBC Japan Screened Equity ETF (HSJD, SIX Swiss Exchange)

Quiet, sensible, ESG-screened exposure to Japanese equities, the kind of product that exists to be recommended by a wealth manager rather than discussed at a dinner party.

Goldman Sachs Income ETF (GINC, NYSE)

Goldman already runs a small empire of income products: premium income ETFs that sell options for yield, a global multi-asset income strategy that blends equities and bonds, and now GINC, seeking a high level of current income with capital appreciation as a supporting act rather than the headline. The income shelf at Goldman keeps growing another arm.

I do not think this is a coincidence so much as a strategy. Investors want income. Goldman has therefore decided to offer it to them in as many wrappers, blends, and flavours as the fund registration process will allow.

Bernie Thurston

Bernie loves data. Fortunately for him, London’s finance industry has been indulgent, providing him lots of benchmark data to play with and enjoy. Bernie’s journey began at Sky, where he designed the first interactive television and helped build a technical-based charity (ctt.org). He then hopped over to finance, and soon found himself at a start-up working on dividends and derivatives. Then, by nature of the fact that finance and technology have rapidly conjoined, he found himself working with Credit Suisse to build an index aggregation and distribution platform. Markit then acquired the start-up and Bernie battled his way up the greasy pole becoming the Managing Director of Markit’s equities division, with responsibility for index, ETF and Dividends. But the siren song of startups called once more. And Bernie was headhunted to rescue a failing index business. Over five years, he helped reverse the fortunes of DeltaOne Solutions, turning into a fighting force. So successful was the turn around that Markit came along and acquired this company as well. But Bernie still loved start-ups. To that end, he founded Ultumus, an ETF and benchmark data company. Ultumus aims to provide the best data in the most timely and consumable manner possible. With clients on both buy and sell side, when something happens in the index or ETF industry, Ultumus is the first to know.

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