Tabula Discontinues Two ETFs as it "Hones in" on ESG
Tabula Investment Management has discontinued two additional ETFs due to low demand as it continues to prioritise ESG initiatives.
On 15 June, the Tabula iTraxx IG Bond UCITS ETF (TTRX) and the Tabula European iTraxx Crossover Credit Short UCITS ETF (TECS) were delisted, bringing to three the number of ETFs closed by the fixed income provider.
According to ETF Stream, Tabula chose to terminate TTRX after the majority of investors switched to the Tabula EUR IG Bond Paris-aligned Climate UCITS ETF (TABC), which was launched in January 2021.
TABC is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR) and has received $15.6 million in inflows so far this year, bringing its total AUM to $115 million.
TABC provides exposure to euro investment-grade bonds issued by issuers with 50 per cent lower greenhouse gas emissions than the wider market and at least 7 per cent annual decarbonisation.
In contrast, TECS, which debuted in February 2019 and concluded with only $3 million in assets under management (AUM), lacks an ESG equivalent, unlike TTRX.
The ETF, which tracks the iTraxx European Crossover Credit Short index, takes short bets on high-yield European corporate credit via a liquid credit default swap index rather than corporate bonds.
Michael John Lytle, 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.”