ESG may be entering a “crisis” period, with flows plummeting quarter-on-quarter, according to recent Morningstar data, however, BlackRock and WisdomTree have both unveiled climate-focused ETFs this week.
BlackRock launched a five-strong climate transition ETF range, regionally divided between global, Europe, EMU, US and Japan equity exposures.
The ETFs track their respective regions of the MSCI Transition Aware Select index suite, which include companies that have set SBTi-approved emissions reduction targets, derive at least 20% of their revenue from ‘green’ sources or have published emission reduction targets.
Meanwhile, WisdomTree unveiled a global sustainable equity ETF in collaboration with Irish Life Investment Managers.
The ETF tracks the Solactive WisdomTree Global Sustainable Equity UCITS index which offers exposure to companies from developed markets that contribute to social and environmental objectives.
Wealth managers roll-out ETF focused portfolios
Two wealth managers have launched model portfolios with ETFs this week, with Omba Advisory & Investments targeting financial advisers while IronMarket Wealth targeted retail investors.
IronMarket Wealth launched a digital wealth platform Fint Invest, which allows investors to buy model portfolios of ETFs via its app.
Meanwhile, Omba Advisory & Investments launched a model portfolio service range using ETFs for financial advisers as they respond to growing demand from financial advisers for low-cost solutions.
The overall charges figure ranges from 0.31% to 1.06% between the five portfolios.
Race for Europe’s first CLO commences
Europe is yet to see the launch of the first collateralised loan obligation (CLO) ETF, however, Janus Henderson’s recent acquisition of fixed income specialist Tabula Investment Management looks set to shift the tide.
Speculation has surfaced that the Janus Henderson AAA CLO ETF could reemerge in UCITS form while VanEck is also looking to launch a UCITS equivalent of its US-listed CLO strategy.
Despite the anticipated entry of CLOs into the European market, regulatory hurdles remain in place. The Central Bank of Ireland has not approved any CLO fund since rules were changed in 2019.
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