October ETP launch review

23 actively managed ETFs launched in October, exceeding any month this year

This report aggregates newly launched funds in October and highlights the performance of the funds launched in September.

• 61 funds were launched in October, against 52 in September
• 40 funds were launched in the Americas, 20 in Europe and one in the APAC region
• First Trust launched 11 new funds, taking the lead for the month of October

October New Listings

ETF launches ramped up with 61 new funds launched last month. Canada accounted for the majority of the newly launched funds. This was in large part due to nine Canadian focused funds launched by First Trust, who added 11 in total.

Other issuers such as Horizons, Purpose Investments, Royal Bank of Canada and UBS AG all launched funds with an investment exposure to Canada.

Dividend focused ETFs were a popular trend for the month of October, with seven new funds added that focused on high dividend paying equities.

While Indexed funds continued to dominate as expected, 23 funds that are actively managed were added last month. This is a trend to watch as the SEC has recently approved a plan for non-transparent actively managed ETFs that could lead to many more actively managed ETF in the near future.

September Flows

Funds launched in September have struggled to rein in considerable assets. Out of the 52 funds launched, the ETFs only gained $767m in assets since their inception.

The Americas were dethroned as leader from the previous monthly report. Across all asset classes, the US funds launched in September saw $324m in inflows. The largest winner is ETF Series Solutions Deep Value ETF with $172.6m in inflows since its inception.

European ETFs launched in September gained the most money from investors compared to the other regions. In total, the 25 ETFs gained $400m in assets. Lyxor ETF JPX NIKKEI 400 Part A, which provides exposure to Japan, saw $205m in inflows since its launch, the largest out of all ETFs launched in September.

The three ETFs launched out of the APAC region gained $43m in assets over the last few months. The largest being KODEX China H Leverage (H) with $30.4m of inflows.

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James Hohorst, ETF Analyst, Markit
Tel: +1 646 679 3012
james.hohorst@markit.com

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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.