Industry Updates

ETF Wrap: abrdn plots launch offensive

An incoming active thematic ETF range, Nvidia’s dominance and an ETF doubling in size made headlines this week

Jamie Gordon

This week saw abrdn plot a broad ETF roll-out in Europe with plans to launch a series of active thematic strategies.

The firm is looking to launch ETFs capturing future megatrends within the trade, food and real estate sectors, with abrdn CEO Stephen Bird stating thematic ETFs represent a growth opportunity for the year ahead on its 2023 results earnings call on Tuesday.

The UK giant added it intends to launch a range of thematic ETFs on its wholly owned interactive investor platform.

The news comes after abrdn entered the European ETF market with the abrdn Global Real Estate Active Thematics (GREAT) UCITS ETF (R8TA) in February 2023.

ETFs ride Nvidia wave

Elsewhere, Nvidia’s meteoric rise has seen it claim a dominant position within thematic ETFs such as the $306m Amundi MSCI Semiconductors ESG Screened UCITS ETF (CHIP), which allocates 34.2% of its basket to Nvidia and owes almost 70% of this year’s performance to the chipmaker.

Elsewhere, Global X increased the weighting limit on the Global X Robotics & Artificial Intelligence UCITS ETF (BOTZ) from 20% to 35% to accommodate Nvidia’s growing market share.

SSGA S&P 500 doubles in months

The SPDR S&P 500 UCITS ETF (SPY5) has doubled in size to $10.3bn since its total expense ratio (TER) was cut from 0.09% to 0.03%, to become Europe’s lowest-fee ETF.

While some of this owes to the S&P 500’s 20.1% gain over that period, SPY5 has boasted a considerable $4.2bn inflows in just four months.

ETF Wrap is a weekly digest of the top stories on ETF Stream

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