Latest news

ETF Securities enters indexing space with launch of ETFS Indices ETF Securities enters indexing space with launch of ETFS Indices

ETF Securities, the exchange-traded products provider and commodities specialist, has entered the competitive world of financial market indexing with the launch of ETFS Indices. Led by Dan Raab, the unit will design and publish liquid and replicable futures-based indices. ETFS Indices’ debut line-up includes two enhanced commodity long-only indices and two commodity long/short indices. The indices are formulated with a goal of having low correlations to traditional asset classes while providing relatively strong reward vs. risk ratios.

Horizons ETFs’ actively managed funds surpass $2 billion in assets Horizons ETFs’ actively managed funds surpass C$2 billion in assets

Horizons ETFs, a Toronto-based provider of exchange-traded funds, has announced that its family of actively managed funds has reached C$2 billion in assets under management. Horizons offers 28 active ETFs managed by various portfolio managers, who aim to deliver better risk-adjusted returns than the broader markets they invest in or reference. This is unlike passive or index-tracking ETFs, also offered by the provider, which seek to replicate the returns of benchmark indices.

Source and CSOP list China A-shares ETF on SIX Swiss Exchange Source and CSOP cross-list China A-shares ETF on SIX Swiss Exchange

Source, a London-headquartered provider of exchange-traded funds, and CSOP Asset Management, a Hong Kong-based asset manager, have cross-listed the CSOP Source FTSE China A50 UCITS ETF (CHNA) on the SIX Swiss Exchange. The ETF, which made its debut in January on the London Stock Exchange, was the first in Europe to offer direct physical exposure to the China A-shares market. Since its launch, the fund has gathered more than $240m in assets on the back of strong demand from investors.

Global ETF and ETP assets reach new record high of $2.45 trillion Global ETF and ETP assets reach new record high of $2.45 trillion

Global ETF and ETP assets reached a new record high of $2.45 trillion at the end of Q1 2014, according to ETFGI, a London-based consultancy. Flows into ETFs and ETPs rebounded in March gathering net inflows of $11.0 billion which, when combined with a small positive market performance in the month, helped lifts assets closer towards the psychological $2.5 trillion mark. According to ETFGI, there are now 5,204 ETFs/ETPs, with 10,219 listings, from 222 providers on 59 exchanges globally.

Equities

iShares slashes charges on income-accruing S&P 500 ETFs iShares slashes charges on income-accruing S&P 500 ETFs

iShares, the world’s largest provider of exchange-traded funds, has reduced the charges on two of its S&P 500 ETFs. The iShares S&P 500 UCITS ETF (Acc) (SACC) and the net total return iShares S&P 500 – B UCITS ETF (Acc) (CSP1), both of which are income-accruing funds, now come with total expense ratios (TERs) of just 0.07%, down from 0.15%. Following these price changes, the two products are currently the cheapest physically replicated ETFs in the UK, pipping similar products from Vanguard and HSBC, which come with TERs of 0.09%.

Commodities

Commodity ETPs see inflows as sentiment turns Commodity ETPs see inflows as sentiment turns

Commodities moved back into favour in the first quarter of 2014, according to data from ETF Securities, a leading provider of commodity-focused exchange-traded products (ETPs). Nicholas Brooks, Head of research and investment strategy at ETF Securities, said: “Gold ETPs moved strongly back into favour in February and March as investors revised down their highly bullish US growth assumptions and revised up the global risk outlook. Broad commodity ETPs also saw a turn in sentiment, with asset allocators rotating into the asset class as an alternative to overstretched developed market equities.”

Fixed Income

DeAWM offers access to global bond market via single ETF DeAWM offers access to global bond market via single ETF

Deutsche Asset & Wealth Management (DeAWM), the investment management division of Deutsche Bank, has launched an exchange-traded fund enabling investors to gain exposure the global bond market via a single ETF. Listed on the Deutsche Börse, the db x-trackers II Barclays Global Aggregate Bond Index UCITS ETF is the first ever ETF to be linked to the Barclays Global Aggregate Bond Index, an index tracking the performance of more than 15,000 securities and encapsulating the world’s investment grade fixed income market.

Alternatives / Multi-Asset

ETF Securities launches 3x short and leveraged FTSE 100 ETPs on LSE ETF Securities launches 3x short and leveraged FTSE 100 ETPs

ETF Securities, a London-headquartered global provider of exchange-traded products (ETPs), has launched two new products on the London Stock Exchange offering 3x short and leveraged exposure to the FTSE 100 index. Townsend Lansing, Head of Short and Leveraged Platform, ETF Securities, said: “We are excited to expand our range of short and leveraged ETPs and provide investors with additional tools to take short term views and make tactical trades. We believe these products provide opportunities to trade on a short term basis with a competitive total cost of ownership.”

ETF and Index News

Nasdaq OMX partners with Chaikin Analytics to launch enhanced alpha indices Nasdaq OMX partners with Chaikin Analytics to launch enhanced alpha indices

Nasdaq OMX, a leading exchange group and index issuer, has teamed up with Chaikin Analytics, a provider of equity analytics, to launch the Nasdaq Chaikin Power Indexes, a range of rules-based, quantitatively-enabled US equity strategy indices. Marc Chaikin, CEO and founder of Chaikin Analytics, said: “Enhanced alpha products, such as the Nasdaq Chaikin Power Indexes, represent the next generation of product innovation. These indexes combine the best traits of smart beta and actively managed ETFs with enhanced performance by narrowing existing indexes down to their most promising constituents.”