October 2020: another positive month European ETFs

October 2020 was another positive month for the European ETF industry since promoters enjoyed inflows, while the market environment turned negative as the second wave of the COVID-19 pandemic hit major markets in Europe and investors feared a second coronavirus lockdown-induced economic downturn. The negative performance of the underlying markets led to decreasing assets under…

What you need to know about European ETF domiciles

As ETFs are registered for sales in different countries and listed on multiple exchanges and trading venues, they can be considered as true cross-border products. Therefore, it is not surprising that the majority of ETFs traded in Europe are domiciled in the international fund hubs of Ireland and Luxembourg. Assets Under Management in the European…

A New Dawn for Synthetic ETFs in Europe?

Up until 2011, synthetic index replication was widely used in the European ETF industry and investors appreciated the low tracking errors and, in some cases, higher performances of these products compared to ETFs which used so-called physical replication. But in the aftermath of the financial crisis and the euro crisis, critics argued that ETFs that…

Why Divesting is the Weakest ESG Strategy

Although the investment industry is normally not a target for public protests or activist campaigns, we witnessed some actions taken by these groups over the course of 2020 regarding the ESG strategies of some asset managers and their ownership of stocks from oil, gas, and coal companies. The ultimate aim of the activists is to…