ETF industry on course to break through $3 trillion milestone, says ETFGI

Latest news

ETF industry on course to break through $3 trillion milestone, says ETFGI

The global exchange-traded fund industry reached an all-time high of $2.76 trillion in assets at the end of November 2014 and is on track to break through the $3 trillion milestone in the first half of 2015, according to research from ETFGI, a leading London-based ETF consultancy. Year-to-date net inflows of $275.3 billion are a new record, beating prior full-year net inflows. Inflows were boosted by a particularly strong November, with a whopping $42.0 billion in net new asset flows, the fourth largest month on record.

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Latest news

UBS broadens range of fixed income ETFs with new medium duration offering UBS broadens range of fixed income ETFs with new medium duration offering

UBS Global Asset Management has broadened its range of fixed income exchange-traded funds with the listing on the London Stock Exchange of three ETFs providing medium-duration exposure to US investment-grade corporate bonds. The funds are linked to the Barclays US Liquid Corporates 1-5 Year Index, an index measuring the performance corporate bonds with a maturity of between one and five years issued in US dollars by financial and non-financial companies based in the USA. The funds include a GBP-hedged version, a USD trading version and GBP trading version.

Europe ETFs: Investors shouldn’t write-off European companies SSGA expands range of European government bond ETFs

State Street Global Advisors (SSGA) has announced the launch of the SPDR Barclays 3–5 Year Euro Government Bond UCITS ETF (SYB4) on the Deutsche Börse. The ETF adds to SSGA’s existing range of European government bond ETFs, which includes the short maturity SPDR Barclays 1-3 Year Euro Government Bond UCITS ETF and the all-maturities SPDR Barclays Euro Government Bond UCITS ETF. This latest ETF provides access to Eurozone government bonds with a maturity between one and up to (but not including) three years.

Research reveals growing demand for smart beta investments Research reveals growing demand for smart beta investments

Invesco PowerShares, a leading global provider of smart beta exchange-traded funds, has published research showing that demand for smart beta investments in Europe is growing. Bryon Lake, Head of Invesco PowerShares, EMEA, said: “As the provider with the longest track record for managing smart beta ETFs, we have championed this strategy and our research reveals that Europe is ready to take advantage of the benefits…Our research has illustrated that big opportunities lie in the UK, Italy, Germany and Switzerland and in the institutional market as these products become increasingly mainstream.”

Boost launches triple leveraged gilts ETP on LSE Boost launches triple leveraged gilts ETP on LSE

Boost, a leading European provider of short and leveraged exchange-traded products and a division of WisdomTree, has listed Europe’s first ever triple leveraged gilts ETP. Listed on the London Stock Exchange, the Boost Gilts 10Y 3x Leverage Daily ETP (3GIL) provides three times geared exposure to 10-year UK government bonds. Hector McNeil, Co-CEO of WisdomTree Europe, said: “We are very pleased to bring Europe’s first 3x leverage Fixed Income ETP, 3GIL, to Europe. Along with the recently listed Boost Gilts 10Y 3x Short Daily ETP (3GIS), the two ETPs provide investors the ability to trade both rising and falling Bank of England interest rates.”

Equities

WisdomTree lists two emerging market dividend ETFs on LSE WisdomTree lists two emerging markets dividend ETFs on LSE

WisdomTree has rolled out two more fundamentally-weighted ETFs on the London Stock Exchange, this time providing exposure to dividend-paying emerging market stocks. The funds – the WisdomTree Emerging Markets Equity Income UCITS ETF (DEM) and WisdomTree Emerging Markets SmallCap Dividend UCITS ETF (DGSE) – take the total number of WisdomTree ETFs listed on the LSE to six. Nik Bienkowski, Co-CEO of WisdomTree Europe, said: “We are extremely proud to expand WisdomTree’s platform of UCITS ETFs with two new ETFs providing exposure to emerging market small-caps and emerging market equity income.”

Commodities

Merk Gold ETF (OUNZ) makes first physical delivery Merk Gold ETF makes first physical delivery

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.

Fixed Income

SSgA unveils world’s first passive global convertible bond ETF SSgA launches first European ETF to provide short maturity EM bond exposure

State Street Global Advisors, the asset manager behind the SPDR ETFs brand, has announced the launch of the SPDR BofA Merrill Lynch 0–5 Year EM USD Government Bond UCITS ETF (ZPR5). The Deutsche Börse-listed ETF is the first European ETF to provide exposure to short maturity emerging market government debt issued in US dollars. Commenting on the launch, Alexis Marinof, head of SPDR ETFs EMEA, said: “This new ETF captures the global investment universe of short maturity emerging market bonds and adds to our existing emerging market fixed income capabilities.”

Alternatives / Multi-Asset

First Asset launches actively managed Canadian REIT and dividend ETFs First Asset launches actively managed Canadian REIT and dividend ETFs

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.

ETF and Index News

SEC approves non-transparent active ETF structure SEC approves Eaton Vance’s non-transparent ETF structure

Non-transparent ETFs moved a step closer in the US last week after the SEC approved a request by Nasdaq to adopt a new rule governing the listing and trading of a new fund structure devised by Eaton Vance called the exchange-traded managed fund (ETMF). ETMFs, which will come to market branded as NextShares, are effectively a hybrid between conventional actively managed mutual funds and ETFs. Thomas E. Faust Jr, Chairman and Chief Executive Officer of Eaton Vance, said: “The approval of Nasdaq’s rule change request for NextShares caps a pivotal two days in the development of NextShares. We look forward to continuing our collaboration with Nasdaq to bring NextShares to market.”