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Business Times
02-06-2025
- Business
- Business Times
Vanguard files for new ex-China emerging markets ETF
ASSET management giant Vanguard Group plans to launch a new exchange-traded fund (ETF) that will target emerging markets while excluding China, joining a growing niche shaped by investor debate over China's role in global portfolios. The Vanguard Emerging Markets ex-China ETF will make its debut later this summer. Many investors have been unsettled by turmoil surrounding China's trade relationship with the United States, even as better performance from Chinese stocks means some are reluctant to remove them from funds altogether. The Vanguard offering would bring to 13 the number of emerging markets ETFs that exclude Chinese stocks, according to Morningstar data. Two-thirds of those have been launched since 2023, a year that saw China's CSI300 index record its third straight year of losses. The growing interest in rolling out these ex-China funds is logical, said Bryan Armour, ETF strategist at Morningstar. 'Investors may be worried about geopolitical risk, state intervention in private markets, or just want to manage their China allocation separately from broader emerging markets,' he said. Even so, in the last month or two, flows into most broad emerging markets have begun to look stronger than those into ex-China alternatives, he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Sammy Suzuki, head of emerging markets equities at AllianceBernstein, said he believes that interest in ex-China emerging markets funds is dwindling as Chinese stocks stage a recovery. In the last 12 months, the iShares China Large-Cap ETF has gained 35.34 per cent, and the returns on Chinese stocks contributed to the 9.7 per cent gain by the broad iShares MSCI Emerging Markets ETF. The iShares MSCI Emerging Markets ex-China ETF is up only 4.8 per cent. 'China is both too large and too controversial to not be its own allocation,' said Jason Hsu, chief investment officer of Rayliant Global Advisors, adding both dedicated China ETFs and emerging markets ex-China products will coexist. Vanguard, which has US$10.1 trillion in total assets, submitted the new filing to the US Securities and Exchange Commission last Friday. It already offers investors the Vanguard FTSE Emerging Markets ETF, which has about US$85.9 billion in assets, with 30 per cent invested in Chinese stocks, according to estimates from Jeff DeMaso, editor of the Independent Vanguard Adviser, who analyses the firm's fund offerings. DeMaso said that investors who buy the new ETF when it launches will swap an outsize position in China for hefty exposure to companies in Taiwan and India, which account for nearly 60 per cent of the underlying index. A spokesman for Vanguard said the new ETF will offer additional choice for investors who want to avoid Chinese stocks with a fee of only 0.07 per cent, compared to 0.25 per cent for BlackRock's offering. REUTERS
Yahoo
02-06-2025
- Business
- Yahoo
Grayscale Wants in on Quantum Computing ETFs
Who says a crypto asset manager has to focus on crypto asset management? There's a world of possibilities out there, and one of the big crypto ETF issuers appears to be branching out. Grayscale filed on Thursday with the Securities and Exchange Commission for the Quantum Computing ETF. The Stamford, Connecticut-based firm started in the US ETF business in 2022 — and, thanks to the move of assets from its Bitcoin Trust to the spot bitcoin ETF it launched in 2024, temporarily had the biggest bitcoin ETF by assets. By August 2024, the significantly cheaper iShares Bitcoin Trust ETF surpassed it. Since then, Grayscale has been building out a line of ETFs with four focused solely on digital assets, two focused on income, two with equities exposure, one dedicated to bitcoin mining companies, and one to adopters of the digital asset. READ ALSO: BlackRock's 'Widow Maker' ETF Is Suddenly in High Demand and Nasdaq Wants to Wrap This $11.5B Altcoin in an ETF The proposed ETF, which is pending SEC approval but could launch by mid August, would be passively managed, tracking an index of companies 'producing proof-of-concept or commercialized quantum computing technologies' and makers of components enabling the technology, according to the prospectus. There is a lot of hype around quantum computing, which benefits from using both the wave and particle natures of matter, though the technology has not been developed in a mainstream capacity yet. It could improve upon the power of classical computers exponentially and make extraordinarily complex calculations in very short times. The technology could even pose a threat to crypto, as it could be used to break the security and gain access to wallets — something BlackRock recently warned investors about. Stop Being Disruptive: There are a handful of tech and artificial-intelligence-focused ETFs with exposure to quantum computing technology. But at least one ETF is already dedicated to the area: the $1.3 billion Defiance Quantum ETF, which launched in 2018. That fund has seen average annualized returns of 21% since inception, per Morningstar. 'It's performed very well,' said Bryan Armour, director of ETF and passive strategies research for North America. Even so, 'investors are pushing to get in early by virtue of the shift in first-mover advantage of new technologies … It's never as smooth as investors would think.' Armour cited examples of other high-flying technology investments that later sputtered, including: The internet (back when it was spelled with a capital 'I') and the dotcom bubble that led to the famous bust. One of the most disruptive technologies over the past century, commercial aviation, has long struggled with profitability, despite its popularity. Spot On: Grayscale is still primarily focused on digital assets. It, along with other firms, is waiting for decisions from the SEC on spot-price Solana and XRP ETFs that it has requested, for example. Whether the company intends to branch out in other ways is a question, but the firm didn't respond to a request for comment. 'Obviously crypto is its core competency, and it made most of its money by offering a private trust,' Armour said. Quantum computing, on the other hand, 'is not a core competency.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Grayscale Wants in on Quantum Computing ETFs
Who says a crypto asset manager has to focus on crypto asset management? There's a world of possibilities out there, and one of the big crypto ETF issuers appears to be branching out. Grayscale filed on Thursday with the Securities and Exchange Commission for the Quantum Computing ETF. The Stamford, Connecticut-based firm started in the US ETF business in 2022 — and, thanks to the move of assets from its Bitcoin Trust to the spot bitcoin ETF it launched in 2024, temporarily had the biggest bitcoin ETF by assets. By August 2024, the significantly cheaper iShares Bitcoin Trust ETF surpassed it. Since then, Grayscale has been building out a line of ETFs with four focused solely on digital assets, two focused on income, two with equities exposure, one dedicated to bitcoin mining companies, and one to adopters of the digital asset. READ ALSO: BlackRock's 'Widow Maker' ETF Is Suddenly in High Demand and Nasdaq Wants to Wrap This $11.5B Altcoin in an ETF The proposed ETF, which is pending SEC approval but could launch by mid August, would be passively managed, tracking an index of companies 'producing proof-of-concept or commercialized quantum computing technologies' and makers of components enabling the technology, according to the prospectus. There is a lot of hype around quantum computing, which benefits from using both the wave and particle natures of matter, though the technology has not been developed in a mainstream capacity yet. It could improve upon the power of classical computers exponentially and make extraordinarily complex calculations in very short times. The technology could even pose a threat to crypto, as it could be used to break the security and gain access to wallets — something BlackRock recently warned investors about. Stop Being Disruptive: There are a handful of tech and artificial-intelligence-focused ETFs with exposure to quantum computing technology. But at least one ETF is already dedicated to the area: the $1.3 billion Defiance Quantum ETF, which launched in 2018. That fund has seen average annualized returns of 21% since inception, per Morningstar. 'It's performed very well,' said Bryan Armour, director of ETF and passive strategies research for North America. Even so, 'investors are pushing to get in early by virtue of the shift in first-mover advantage of new technologies … It's never as smooth as investors would think.' Armour cited examples of other high-flying technology investments that later sputtered, including: The internet (back when it was spelled with a capital 'I') and the dotcom bubble that led to the famous bust. One of the most disruptive technologies over the past century, commercial aviation, has long struggled with profitability, despite its popularity. Spot On: Grayscale is still primarily focused on digital assets. It, along with other firms, is waiting for decisions from the SEC on spot-price Solana and XRP ETFs that it has requested, for example. Whether the company intends to branch out in other ways is a question, but the firm didn't respond to a request for comment. 'Obviously crypto is its core competency, and it made most of its money by offering a private trust,' Armour said. Quantum computing, on the other hand, 'is not a core competency.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
02-06-2025
- Business
- Reuters
Vanguard files for new ex-China emerging markets ETF
June 2 (Reuters) - Asset management giant Vanguard Group plans to launch a new exchange-traded fund (ETF) that will target emerging markets while excluding China, joining a growing niche shaped by investor debate over China's role in global portfolios. The Vanguard Emerging Markets ex-China ETF will make its debut later this summer. Many investors have been unsettled by turmoil surrounding China's trade relationship with the United States, even as better performance from Chinese stocks means some are reluctant to remove them from funds altogether. The Vanguard offering would bring to 13 the number of emerging markets ETFs that exclude Chinese stocks, according to Morningstar data. Two-thirds of those have been launched since 2023, a year that saw China's CSI300 index record its third straight year of losses. The growing interest in rolling out these ex-China funds is logical, said Bryan Armour, ETF strategist at Morningstar. "Investors may be worried about geopolitical risk, state intervention in private markets, or just want to manage their China allocation separately from broader emerging markets," he said. Even so, in the last month or two, flows into most broad emerging markets have begun to look stronger than those into ex-China alternatives, he said. Sammy Suzuki, head of emerging markets equities at AllianceBernstein, said he believes that interest in ex-China emerging markets funds is dwindling as Chinese stocks stage a recovery. In the last 12 months, the iShares China Large-Cap ETF (FXI.P), opens new tab has gained 35.34%, and the returns on Chinese stocks contributed to the 9.7% gain by the broad iShares MSCI Emerging Markets ETF (EEM.P), opens new tab. The iShares MSCI Emerging Markets ex-China ETF (EMXC.O), opens new tab is up only 4.8%. "China is both too large and too controversial to not be its own allocation," said Jason Hsu, chief investment officer of Rayliant Global Advisors, adding both dedicated China ETFs and emerging markets ex-China products will coexist. Vanguard, which has $10.1 trillion in total assets, submitted the new filing to the U.S. Securities and Exchange Commission last Friday. It already offers investors the Vanguard FTSE Emerging Markets ETF (VWO.P), opens new tab, which has about $85.9 billion in assets, with 30% invested in Chinese stocks, according to estimates from Jeff DeMaso, editor of the Independent Vanguard Adviser, who analyzes the firm's fund offerings. DeMaso said that investors who buy the new ETF when it launches will swap an outsize position in China for hefty exposure to companies in Taiwan and India, which account for nearly 60% of the underlying index. A spokesman for Vanguard said the new ETF will offer additional choice for investors who want to avoid Chinese stocks with a fee of only 0.07%, compared to 0.25% for BlackRock's (BLK.N), opens new tab offering.
Yahoo
02-06-2025
- Business
- Yahoo
Vanguard files for new ex-China emerging markets ETF
By Suzanne McGee (Reuters) -Asset management giant Vanguard Group plans to launch a new exchange-traded fund (ETF) that will target emerging markets while excluding China, joining a growing niche shaped by investor debate over China's role in global portfolios. The Vanguard Emerging Markets ex-China ETF will make its debut later this summer. Many investors have been unsettled by turmoil surrounding China's trade relationship with the United States, even as better performance from Chinese stocks means some are reluctant to remove them from funds altogether. The Vanguard offering would bring to 13 the number of emerging markets ETFs that exclude Chinese stocks, according to Morningstar data. Two-thirds of those have been launched since 2023, a year that saw China's CSI300 index record its third straight year of losses. The growing interest in rolling out these ex-China funds is logical, said Bryan Armour, ETF strategist at Morningstar. "Investors may be worried about geopolitical risk, state intervention in private markets, or just want to manage their China allocation separately from broader emerging markets," he said. Even so, in the last month or two, flows into most broad emerging markets have begun to look stronger than those into ex-China alternatives, he said. Sammy Suzuki, head of emerging markets equities at AllianceBernstein, said he believes that interest in ex-China emerging markets funds is dwindling as Chinese stocks stage a recovery. In the last 12 months, the iShares China Large-Cap ETF has gained 35.34%, and the returns on Chinese stocks contributed to the 9.7% gain by the broad iShares MSCI Emerging Markets ETF. The iShares MSCI Emerging Markets ex-China ETF is up only 4.8%. "China is both too large and too controversial to not be its own allocation," said Jason Hsu, chief investment officer of Rayliant Global Advisors, adding both dedicated China ETFs and emerging markets ex-China products will coexist. Vanguard, which has $10.1 trillion in total assets, submitted the new filing to the U.S. Securities and Exchange Commission last Friday. It already offers investors the Vanguard FTSE Emerging Markets ETF, which has about $85.9 billion in assets, with 30% invested in Chinese stocks, according to estimates from Jeff DeMaso, editor of the Independent Vanguard Adviser, who analyzes the firm's fund offerings. DeMaso said that investors who buy the new ETF when it launches will swap an outsize position in China for hefty exposure to companies in Taiwan and India, which account for nearly 60% of the underlying index. A spokesman for Vanguard said the new ETF will offer additional choice for investors who want to avoid Chinese stocks with a fee of only 0.07%, compared to 0.25% for BlackRock's offering. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
