One more US manager entered the European ETF market this week, alongside Italy’s Intesa Sanpaolo Group with a six-strong launch.
American Century entered by launching the Avantis Global Equity UCITS ETF (AVWC) and the Avantis Global Small Cap Value UCITS ETF (AVWS), both listed on Deutsche Boerse.
Meanwhile, Intesa Sanpaolo Group launched six ETFs through its subsidiary, Fideuram Asset Management Ireland, marking its entry into the ETF market.
The products include three equity and three bond ETFs - all classified as Article 8 under the Sustainable Financial Disclosure Regulation (SFDR).
Robeco is also set to soon launch five actively managed equity strategies in its initial push into Europe’s ETF market, ETF Stream revealed this month.
ETF move to T+1 to align with Europe
The UK’s Accelerated Settlement Taskforce (AST) stated that a potential early move to a T+1 settlement cycle ahead of the EU will not affect ETFs.
Two scenarios were outlined, both with favourable outcomes. In one, the UK moves ahead, but ETFs remain on T+2 until Europe follows suit; in the other, both markets transition together.
The industry has until October to provide feedback, with final recommendations expected by the end of 2024.
Additionally, ESMA’s advisory board warned that without addressing settlement inefficiencies for ETFs, Europe’s transition to T+1 could worsen these issues.
China’s ETF comeback
China ETFs saw record gains after the government introduced its most significant stimulus package since 2008.
The CSI 300 index surged 15.7%, with niche ETFs like the Invesco ChiNext 50 UCITS ETF soaring 45.5%.
Stimulus measures included interest rate cuts, mortgage relief, and liquidity facilities aimed at boosting household income and stock market confidence.
While some experts see short-term benefits, they remain cautious about long-term economic challenges facing China.
