Sage puts ESG and fixed income together
Connecticut money manager Sage is listing a new ETF that puts two of the biggest ETF themes of 2017 together: fixed income and ESG. The Sage ESG Intermediate Credit ETF (GUDB) will invest in US dollar-denominated medium-term investment-grade corporate bonds. It will use data from London-based ESG researchers Sustainalytics to determine which companies are the most ESG friendly. It will also use a “controversy” filter, that tallies the environmental controversies of big companies. The companies with better ESG scores and lower controversy scores will have their bonds put in the index.
FormulaFolios lists more smart beta funds
Michigan-based private money manager FormulaFolios is listing two new actively managed quant ETFs that invest in other ETFs. They are:
FFTG starts by "tactically" lining up five asset classes: US stocks, US bonds, equities in rich countries ex-US, property, and gold. The fund ranks the five asset classes by their momentum using prominent ETFs in each. The three asset classes with the most momentum will then receive equal weighting in the index. The fund’s managers will then have discretion over which stocks in each sector get invested in. If there are no three sectors with momentum, the fund will invest in short-term T-bills.
FFSG will try to be "smart" where FFTG tried to be tactical. FFSG will invest a portfolio of two halves. The first half will buy equities from around the world that show strong growth, even if they are riskier. What the second half does depends on market conditions. In a bear market, it will offset the risk of the first half by investing in T-bills and cash. In a bull market, it will do the same as the first half and invest in growth ETFs and stocks.
Europe
Germany
Vanguard cross-lists a lot
Vanguard has joined the headlong rush to list all over Europe in the wake of Mifid II, and is expanding its offering into Germany, where it has cross-listed all of its European ETFs on the Deutsche Börse.
European issuers can sometimes shy away from listing funds in Germany because German exchanges can have quite generous secondary listing policies. These allow licensed brokers to list pretty much any ETF on the secondary market, so long as it is listed on another major European exchange. The ETFs Vanguard is cross-listing are:
Corporate action:
HSBC turns worldwide ETFs active
HSBC is turnings its back on passively managed ETFs, remaking two of its worldwide funds as active ETFs. They are:
Both funds will use investment philosophies and portfolio construction strategies that were similar to the indexes they tracked, HSBC said in a statement.