Citigroup has entered the market as the latest contender to introduce a white-label ETP platform, targeting a launch in 2025.
The platform – Citi Velocity ETFs – will specifically target asset managers launching active ETFs as demand continues to surge in Europe.
Andrew Jamieson, Citigroup's global head of ETF product, highlighted that many asset managers are considering starting ETF businesses as “the mutual fund model may be reaching its limit”.
The move follows other firms rushing to get a slice of the action in the white-label ETF space.
Alfunds announced the launch of an ETP platform teed up for 2025, while HANetf has seen a flood of a managers launching ETFs for the first time via the white labeller.
These included Guinness Asset Management, Harbor Capital Advisors and Performance Trust across Q2 and Q3.
Are China ETFs a Fed rate cut play?
Recent broad stimulus in China boosted China ETFs, with gains seen in the recently launched Invesco ChiNext 50 UCITS ETF. This rally follows China's rate cuts, alongside a $140bn liquidity injection and reduced mortgage rates.
James Athey, bond fund manager at Marlborough considered the potential impact of US Federal Reserve rate cuts, which might ease currency pressures and allow China more flexibility in monetary policy.
However, structural economic reform is needed to sustain growth, as China grapples with deflationary pressures and debt-driven issues. While further stimulus may provide short-term ETF gains, long-term investment may still lie on shaky grounds.
Franklin Templeton unveils Saudi Arabia ETF
Finally, Franklin Templeton has launched the Franklin FTSE Saudi Arabia UCITS ETF (FLXS), tracking the FTSE Saudi Arabia 30/18 Capped index, providing exposure to 64 stocks.
The launch undercuts both iShares and Invesco’s equivalent products, with a total expense ratio of 0.39%.
Meanwhile, Invesco expanded its thematic ETF range with the launch of three products, the Invesco Artificial Intelligence Enablers UCITS ETF (IVAI), the Invesco Cybersecurity UCITS ETF (ICBR) and the Invesco Defence Innovation UCITS ETF (IDFN), each with a 0.35% total expense ratio.
