UBS has launched an ETF that offers exposure to the performance of government bonds issued by emerging markets denominated in their local currency or in US dollars, while raising return levels through exposure to the US dollar Libor interest rate. The UBS JP Morgan EM Multi-Factor Enhanced Local Currency Bond Ucits ETF will track the JP Morgan EM Multi-Factor Enhanced Local Currency Bond Index.

The benchmark includes emerging market local currency sovereign bonds with a maximum maturity of three years. The bonds are chosen on the basis of carry and momentum factors which means they are taking a systematic investment approach. The ETF also invests in emerging market short-term government bonds denominated in US dollars with a maturity of one to five years. The total expense ratio of the new ETF stands at 0.47% and is tradeable through Xetra - a trading venue operated by Frankfurt Stock Exchange.

Invesco has expanded its range of US sector exchange-traded funds (ETFs) by launching the Invesco Communications S&P US Select Sector Ucits ETF. The ETF is listed on theLondon Stock Exchange and tracks the newly created communications sector of the S&P 500 index. In a major sector shuffle, effective at the end of September, S&P has announced to shift some of the so-called Fang high-growth stocks like Facebook and Netflix from its technology index to a broadened telecom group, renamed 'communications services'. The new sector also combines media with telecom stocks. The new ETF has a total expense ratio of 0.14%.

The US investment management company also attempts to lure investors seeking for core emerging market equity exposure with a new ETF called Invesco Goldman Sachs Equity Factor Index Emerging Markets Ucits ETF. The fund tracks the performance of more than 300 stocks in 30 emerging markets and applies the same investment approach employed in the firm's range of multi-factor strategy products of focusing on five factors: value, momentum, quality, low beta and size. Invesco's multi-factor strategy products have more than US$1.1 billion of assets under management.

'Until now, factor strategies have focused predominantly on developed markets. However, we're now seeing the quality of data on emerging market companies improving to the point where we can also capture these long-term drivers of outperformance in these markets,' said Chris Mellor, head of EMEA ETF equity product management at Invesco.

Another AI ETF is out, this time by BetaShares. The Australian ETF provider has launched the BetaShares Global Robotics and Artificial Intelligence ETF, which offers exposure to a portfolio of global companies involved in production or use of robotics and AI products and services such as Nvidia, ABB and Mitsubishi Electric. The new fund on the Australian Securities Exchange (ASX) has a net expense ratio of 0.57%.

Amundi, a subsidiary jointly created by Credit Agricole and Societe Generale, has also launched a new ETF on the megatrend. The Amundi Stoxx Global Artificial Intelligence Ucits ETF tracks the Stoxx AI Global Artificial intelligence index with ongoing charges of 0.35%. The benchmark of the fund is equally weighted and provides diversification across countries, sectors and market capitalisation.

Bloomberg report shows that Societe Generale warned on liquidity risks stemming from the ETF investing boom in a report earlier this month, echoing brewing concerns of regulators and fund managers on the excessive sales of ETFs. In the French bank's cross asset research, analysts said 'crowdedness exists but is limited to a few stocks and strategies,' pointing to small caps, dividend shares and gold miners as areas likely to take a hit from market downfalls.

European Systemic Risk Board, a regulatory body, also warned on liquidity risks in a report this month, saying 'the use of ETFs by investors to gain market exposure, including exposure to less liquid instruments, has grown rapidly in recent years.'

A new European fixed income ETF provider, Tabula Investment, has launched its first ETF that seeks to provide higher yields to investors without the direct interest rate risks, especially in the face of rising expectations of a rate hike from the European Central Bank (ECB). The Tabula European Performance Credit Ucits ETF on London Stock Exchange tracks the iTraxx European Performance Credit Index which offers European credit exposure, mostly through investment grade issues. The fund has an ongoing charge of 0.50%.