Industry Updates

An ETF for China's "new economy"

David Tuckwell

Today's listings

Hong Kong

Former BlackRock execs list China new economy fund

Premia Partners, a Hong Kong ETF provider founded by former BlackRock executives, is listing a new fund that tracks China's "new economy", the Premia CSI Caixin China New Economy ETF (3173).

3173 will track an index made up of 300 Chinese companies listed in Shenzhen and Shanghai. According to the index factsheet, the "new economy" includes companies whose main business involves the internet, communications, IT, waste management, the environment and specialist manufacturing. Stocks within this universe will be chosen and weighted based on "financial health", which will be measured by profitability, capital ratios and reserve cash.


KraneShares lists niche-within-a-niche ETF

China ETF specialist KraneShares is listing a new fund on BATS which tracks EM-headquartered companies that make consumer technologies, the KraneShares Emerging Markets Consumer Technologies Index ETF (KEMQ).

KEMQ will invest 80% of its assets in the stocks of EM companies while leaving 20% open to invest in assets KraneShares "believes will help the Fund track the Underlying Index," the prospectus says. These other assets can include derivatives, other ETFs and cash.


VanEck lists natural resources tracker

VanEck is listing a sector ETF in London that targets the natural resources industry, the VanEck Natural Resources UCITS ETF. The fund will be available in both US dollars and pound sterling (HAP, HAGB).

HAP will use an index built in-house made up 50% of US companies and 50% of companies from the rest of the world. Within the natural resources sector, oil majors take the lion's share and account for 30% of the index weighting, the factsheet says.

HAP has been listed in the US since 2008, where it has collected $111 million assets. That it is being listed in the UK as well despite its relatively small asset base suggests VanEck believes it will have more luck elsewhere.

UK and France

Lyxor brings more floating rate notes

French issuer Lyxor is listing a new fund in Paris and London that tracks floating rate notes, the Lyxor $ Floating Rate Note UCITS ETF (SWIH). SWIH will track the Bloomberg Barclays US Corporate FRN 2-7 Year Total Return Index, much like its sister product SWIM.

The index offers exposure to "USD-denominated, investment-grade floating rate notes from industrials, utilities and financial issuers," the factsheet says.

Today's news from around the web

Most analysts impressed with Guggenheim acquisition

Analysts across the spectrum agree that Invesco buying Guggenheim for $1.2bn was a great idea, if expensive. It will allow Invesco to expand its smart beta range (smart beta ETFs are predicted to grow more than any other kind of ETF), give it further scale and help it catch the "big three" ETF providers. The acquisition also helps make Invesco's narrative more positive.

Most managers unprepared for Mifid's research costs

A key party of the EU's new transparency rules concerns who pays for research. Seeing an opportunity, startups have founded aggregation websites that put market research in one place for free. In doing so, they plan to take on Bloomberg, which charges users $22,000 a year to use a terminal with research access.

Fidelity radically overhauls fee structure

Bermuda-based Fidelity International will challenge stock pickers to put their money where their mouth is by putting in place a new fee structure that only pays them if they perform. Instead of flat management fees, fees will go up and down depending on fund performance.

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