BlackRock, the asset manager behind the iShares brand of exchange-traded funds, has expanded its range of over 80 fixed income ETFs with two funds that purchase long-dated US and Eurozone government bonds with maturities of 15 years or more. The funds, which launched on the London Stock Exchange and Deutsche Börse last week, build out iShares’ suite of over 35 government bond ETFs and allow investors to be more precise with their sovereign exposure by targeting specific durations.[continue reading...]
- BlackRock adds long-dated sovereign bond ETFs to iShares fixed income range
- European ETF growth levels to be sustained in 2015, says Deutsche AWM
- MSCI reports record surge in demand from ETF Providers for smart beta factor indices
- ETF assets under management to exceed $5 trillion by 2020, finds PwC
- ChinaAMC licenses MSCI China A Index for new China A Shares ETF
- Source and Goldman Sachs expand range of smart beta ETFs
- Survey shows growing institutional adoption of ETFs in Europe
- S&P Dow Jones announces aggressive expansion of fixed income index business
- Source and Rothschild launch equal risk smart beta ETF
- ETF industry on course to break through $3 trillion milestone, says ETFGI
- UBS broadens range of fixed income ETFs with new medium duration offering
- SSGA expands range of European government bond ETFs
The European ETF market is expected to expand 15-20% in 2015, according to Simon Klein, Head of Exchange Traded Product Distribution & Institutional Mandates, EMEA and Asia, at Deutsche Asset & Wealth Management (Deutsche AWM). With €357.3 billion in ETF assets under management, ETFs currently account for some 3.3 per cent of total fund volumes in Europe. As well as innovation to provide investors with new types of market exposure in ETF format, other anticipated growth drivers in 2015 will be the range of additional services ETF houses can provide clients, and strong price competition, noted Klein, speaking at a recent press conference in Frankfurt.
MSCI, a leading index provider to the ETF industry worldwide, has reported a surge in demand from ETF providers for its “smart beta” factor indices, with almost half of new MSCI index-based ETFs launched in 2014 linked to MSCI factor indices. Overall, 95 ETFs based on MSCI indices were launched in 2014, with 42 (45 percent) of these linked to factor indices, compared to six in 2013. Twelve new ETFs tracking MSCI multi-factor indices, which combine more than one factor, were launched in 2014. Baer Pettit, Managing Director and Global Head of MSCI’s Index Business, said: “2014 was a year of strong growth in the number of ETFs based on our indexes, in particular our factor indexes.”
PwC has published a report revealing that more than three out of four asset management industry executives expect ETF assets to at least double, to reach $5 trillion or more, by 2020. According to the report, asset flows in the developed markets of the US and Europe will continue to dominate the ETF landscape. However, the highest rates of growth will be found in the less mature markets. Institutional investors are widely expected to be the primary growth driver with insurance companies, pension plans and hedge funds in particular, projected to be significant sources of demand for ETFs.
MSCI, a leading provider of indices to exchange-traded funds, has licensed the MSCI China A Index to China Asset Management Co for a new ETF to be listed on the Shanghai Stock Exchange in March. With over USD 50 billion in assets under management, ChinaAMC is one of the largest asset managers in Mainland China, and launched the first ever ETF there in 2005. The ChinaAMC MSCI China A ETF is the first ETF to be listed in Mainland China that tracks a China A index from an international index provider.
Source, one of Europe’s leading providers of exchange-traded funds, has announced the launch of the Source Goldman Sachs Equity Factor Index Europe UCITS ETF, the second Source ETF to be launched that provides access to Goldman Sachs’ innovative series of multi-factor “smart beta” indices. Michael John Lytle, Chief Development Officer at Source, said: “Smart beta funds have proven successful in certain markets, providing investors with the potential to generate better returns than the more common market-cap weighted benchmarks, particularly on a risk-adjusted basis.”
The Merk Gold Trust (OUNZ), a deliverable gold exchange-traded fund, has successfully completed its first gold delivery. The ETF, which launched on the NYSE Arca in May, possesses an innovative feature which gives investors the option to take delivery of physical gold vaulted in London in exchange for their shares. On Wednesday, July 16, 2014, such a request was made. An investor submitted 5,406 shares of OUNZ to Merk requesting 54 American Buffalo gold coins to be delivered; the gold was successfully delivered on Tuesday, July 22, 2014.
S&P Dow Jones Indices has announced an aggressive plan to exponentially grow its fixed income index business in anticipation of growing global demand for bond indices for use in both passive investment strategies, such as ETFs, and as benchmarks for actively managed portfolios. In total, the new S&P DJI fixed income indices will cover over 20,000 individual securities with the ultimate goal of launching thousands of maturity and sector based indices. S&P DJI already publishes over 500 fixed income indices globally covering municipals, preferreds, corporates, CDS, and senior loans amongst others, and is the third largest provider of fixed income indices for the global ETF market.
First Asset, a Toronto-based investment manager, has announced the launch of two new active exchange-traded funds: the First Asset Active Canadian REIT ETF (FRF) and the First Asset Active Canadian Dividend ETF (FDV). The ETFs, which have been listed on the Toronto Stock Exchange, provide actively managed exposure to real estate equities and dividend-paying stocks, respectively, listed in Canada.
A survey of 120 European institutions has found that pension funds, insurers and asset managers are using exchange-traded funds for a wide range of purposes and holding them for much longer than commonly thought. The survey, conducted by Greenwich Associates and commissioned by BlackRock, debunks the perception that ETFs are primarily used as short-term instruments. Indeed, only 6% of respondents who used ETFs to make tactical adjustments, and 2% using ETFs as a core allocation, held them for one month or less. Pension funds hold ETFs for an average of 29 months, the longest of those groups surveyed.