Source has introduced USD- and EUR-hedged share classes for its Source JPX-Nikkei 400 UCITS ETF. The currency-hedged share classes will enable US dollar- and euro-based investors to gain exposure to this increasingly important equity benchmark while mitigating the adverse effect of a depreciating yen. Unveiled in 2013, the JPX-Nikkei 400 Index provides broad exposure to Japanese stocks whilst focusing on companies with the potential to generate shareholder value. The index was developed by Nikkei and the Japan Exchange Group, and selects stocks on the basis not only of size but also return on equity, operating profit, transparency and corporate governance.[continue reading...]
- Source introduces currency-hedged versions of JPX-Nikkei 400 ETF
- European ETF assets near $500 billion mark
- WisdomTree surpasses $50 billion in assets under management
- Lyxor expands Euro govies range with ultra long-duration ETF
- Ossiam adds income-distributing share class to FTSE 100 Minimum Variance ETF
- UBS unveils currency-hedged commodities ETF
- Global ETF assets approach $3 trillion as industry turns 25
- BlackRock slashes price of flagship iShares FTSE 100 ETF (ISF)
- Boost’s triple leveraged oil ETP (3OIL) closes in on $100m mark
- Pace of ETF asset gathering in 2015 is fastest start to year on record: BlackRock
- Deutsche AWM unveils three interest rate-hedged bond ETFs on NYSE Arca
- WisdomTree rolls out European ETF range on Deutsche Börse
Assets invested in European listed ETFs and ETPs are on course to surpass $500 billion having reached a new record high of $494 billion at the end of February 2015. According to data from industry consultants ETFGI, ETFs/ETPs listed in Europe saw net inflows of $12.49 billion in February, the second highest month of net new assets on record after a record $14.25 billion of net inflows the previous month. iShares gathered the largest net ETF/ETP inflows in February with $5.67 billion, followed by Lyxor Asset Management with $2.03 billion and Deutsche Asset & Wealth Management with $1.35 billion.
WisdomTree Investments has announced that assets under management have surpassed $50 billion. WisdomTree launched its first ETFs in June of 2006 and has reached the milestone in under ten years’ time. The company’s approach to ETFs includes innovation at the index level such as fundamentally weighted ‘smart beta’ and currency hedged equity ETFs based on proprietary indices. Jonathan Steinberg, WisdomTree CEO & President, said: “I believe the movement to ETF investing is a structural, universal and irreversible trend because the characteristics of the ETF – transparency, liquidity and tax efficiency – are the qualities essential to a positive investing experience.”
Lyxor Asset Management has announced the launch of an exchange-traded fund providing access to ultra long-duration eurozone bonds. The ETF, which has been listed on Euronext Paris, is linked to the FTSE MTS Eurozone Government Bond IG 25Y+ Index, an index tracking the performance of investment-grade eurozone governments bonds with a maturity of 25 years or more and a minimum outstanding size of EUR 2 billion. Arnaud Llinas, Head of Lyxor ETFs and Indexing, said: “Lyxor is always looking for new investment opportunities to meet investor needs and is expanding its fixed income ETF range accordingly.”
Ossiam, a leading provider of smart beta exchange-traded funds, has introduced a distributing share class to the Ossiam FTSE 100 Minimum Variance UCITS ETF in response to investor demand. The fund, which holds a five-star Morningstar rating and has since inception outperformed the FTSE with lower volatility, is listed on the London Stock Exchange and based on the FTSE 100 Minimum Variance Index. This index is designed to minimise the volatility of the FTSE 100 based on historical return information, including the variance and correlations of constituents, thereby offering potential improvements to the risk reward trade-off of the index.
BlackRock has cut the price of two iShares UK equities exchange-traded funds, including the country’s oldest and largest FTSE 100 ETF. The price of flagship income-distributing iShares FTSE 100 UCITS ETF (Dist) (ISF) has been reduced from 40 basis points to seven basis points. This fund was the first ETF to list on the London Stock Exchange, in April 2000, and has some £3.8 billion assets under management. Fergus Slinger, head of UK sales at iShares, said: “The ETF market throughout Europe is growing hugely, and today’s changes are about ensuring the demand UK investors have for ETFs is met with the right products at the right price.”
UBS Global Asset Management has expanded its line-up of currency-hedged exchange-traded funds with the launch of the GBP-hedged UBS ETF (IE) CMCI Composite hedged GBP SF UCITS ETF (UC90) on the London Stock Exchange. The ETF is linked to the Bloomberg CMCI Composite Total Return index, a second-generation index which extends beyond use of short-dated futures contracts and diversifies investment across the maturity curve. The index is diversified across 26 commodities and five maturities. UBS is largest provider of currency-hedged ETFs in Europe.
Deutsche Asset & Wealth Management (Deutsche AWM) has expanded its US exchange-traded fund platform with the launch of three new interest rate-hedged fixed income ETFs. The ETFs, which have been listed on the NYSE Arca, provide investors with exposure to US dollar-denominated investment-grade, high-yield corporate and emerging markets sovereign and quasi-sovereign debt, whilst mitigating the effect of rising interest rates. Each of the funds is composed of long positions in their target USD-denominated fixed income segment and short positions in US Treasury notes or bonds of, in aggregate, approximate equivalent duration to their respective target fixed income segment.
Boost ETP, a specialist provider of short and leveraged exchange-traded products and a subsidiary of WisdomTree Europe, has revealed that trading volumes across its platform hit a record of $518 million in January, equating to a notional volume exceeding $1.5 billion. The new record comes against the backdrop of a rise in market volatility and increasing concerns over the robustness of spread betting and CFD firms, a few of which have entered administration or frozen client accounts in recent months. Trading volumes on the platform have been on a clear growth trend, more than tripling over the past six months.
Assets invested in ETFs/ETPs globally are just shy of the $3 trillion mark, having reached a new record high of $2.92 trillion at the end of February 2015, according to data from ETFGI. The record high coincides with the 25th anniversary of the listing of what is widely regarded as very first exchange-traded fund, the Toronto 35 Index Participation Fund, which launched on the Toronto Stock Exchange on 9 March 1990. “Twenty-five years marks an important milestone for the ETF industry which has grown significantly on many measures”, said Deborah Fuhr, managing partner of ETFGI.