Industry Updates

Tabula shuts two ETFs as it turns ‘laser focus’ on ESG

The fixed income specialist has closed three ETFs this year

Theo Andrew

Michael John Lytle

Tabula Investment Management has closed two more ETFs with low demand as it continues to increase its focus on ESG strategies.

The Tabula iTraxx IG Bond UCITS ETF (TTRX) and the Tabula European iTraxx Crossover Credit Short UCITS ETF (TECS) were delisted on 15 June, taking the number of ETFs closed by the fixed income issuer to three.

Regarding TTRX, Tabula decided to close the ETF after the majority of investors switched to the Tabula EUR IG Bond Paris-aligned Climate UCITS ETF (TABC) launched in January 2021, ETF Stream understands.  

TABC is labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR) and has seen inflows of $15.6m year to date, taking its total AUM to $115m.

TABC offers exposure to euro investment grade bonds from issuers with 50% lower greenhouse gas emissions versus the broad market and an annual decarbonisation of at least 7%.

Conversely, TECS, which launched in February 2019, had just $3m in assets under management (AUM) when it closed and unlike TTRX does not have an ESG equivalent.

Tracking the iTraxx European Crossover Credit Short index, the ETF takes short positions on high-yield European corporate credit, with exposure via a liquid credit default swap index rather than corporate bonds.

Commenting on the news, Michael John Lytle (pictured), CEO of Tabula, said: “As we develop our fund range we are laser-focused on delivering ETFs that address investors’ needs and tackle the gaps in current fixed income solutions.

“Almost 70% of our current ETF AUM is now in Article 8 or 9 ETFs. We are in the process of launching several new funds which help address the challenges facing fixed income portfolios. Efficiency in our product offering helps us deliver better solutions to our clients.”

In February, Tabula closed the first-ever product it launched, the Tabula European IG Performance Credit UCITS ETF (TCEP), due to low demand.  

Related articles

Featured in this article