July ETP launch review

This report aggregates newly launched funds in July and reviews the performance of the funds launched in June.

• July added 58 new ETFs spread across 20 different issuers; the highest monthly total this year so far
• 36 funds were launched in the Americas, 21 added in Emea and one launched in the Apac region
• Equity funds dominated, but eight new fixed income ETFs were launched plus two alternative funds

New listings

For the duration of July the majority of issuers either focused on the US market or hedged their ETFs against the US dollar. There were 22 new ETFs focused on the US market launched, and out of the remaining funds focused on other regions 16 are hedged to the US dollar.

With proven performances and longer track records, larger ETF issuers have tended to leverage their brand name and scale to attract funds, launching ETFs focused on the broader market of a particular region. Smaller issuers have had to find niche markets and provide unique strategies order to attract investor attention. Several smaller issuers have applied various weighting methodologies such as volatility or dividend weighting to further differentiate their funds against the competition.

June flows

The 38 ETFs added in June have gained $812m since their inception. The majority of the flows went to the US listed funds, which saw $745m in inflows. European and Apac listed funds launched in June managed to gain $36m and $30m, respectively.

The launch of Direxion Daily CSI 300 China A Shares Bear 1X ETF (CHAD) proved to be well timed as the Chinese market saw significant losses during the month of July. CHAD has gained $275m since its June launch.

Pacer Financial added three new funds in June which have all seen robust success. The funds use a multi asset strategy that shifts between US equities and treasury bills, depending on specific indicators. The three funds have earned $338m collectively.

ProShares launched a significant number of ETFs in June, focused on leveraged and inverse market sectors. Due to a large number of M&A deals in the biotechnology sector, the ProShares UltraPro NASDAQ Biotechnology ETF (UBIO) was able to attract $35m in new assets under management.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.