THE VIEW
Flows are still favoring bonds, and new launches keep targeting themes advisors are already asking about. For asset gatherers the practical lesson is to pair a clear role in the portfolio with a theme clients can explain in one sentence.
Release: Estimated ETF Net Issuance
ICI estimates net ETF issuance of $48.22 billion for the week ended October 7, with bond ETFs at $25.41 billion and equity ETFs at $21.17 billion. Bond demand is outpacing equity, so funds with an income or ballast role have the stronger tailwind.
The RBC iShares Alliance Expands Lineup with New Active A.I. and Technology ETF
BlackRock Canada launched the iShares A.I. Innovation and Tech ETF (XBAI) on October 13 on the Toronto Stock Exchange with a 0.70 percent management fee and an active approach across the A.I. value chain. Large issuers are still launching active theme funds, which raises the bar for how smaller sponsors explain their edge.
ETF launches, closures and fee changes
etf.net reports that Sequoia Fund holders must redeem by Thursday, October 15 or their shares convert to the ETF, and that four State Street sector funds became effective October 13. Fund-to-ETF conversions and new sector products keep adding to the shelf advisors have to sort through.