ETF Securities, a London-based issuer of exchange-traded funds, has partnered with US-based index provider ISE ETF Ventures to launch the ETFS ISE Cyber Security GO UCITS ETF, Europe’s first locally listed ETF to offer pure-play exposure to the fast-growing cyber security sector. Listed on the London Stock Exchange, the ETF is based on a UCITS-compliant version of the index behind the hugely successful NYSE Arca-listed PureFunds ISE Cyber Security ETF, known colloquially by its exchange ticker code “HACK”, which attracted in excess of $1.1bn in assets under management in its first 10 months of trading.[continue reading...]
- SSE and CSI team up on carbon emission-based index for China investors
- FlexShares introduces credit-scored US corporate bond ETF
- ETF Securities brings cyber security ETF to Europe
- iShares launches MSCI Saudi Arabia ETF on NYSE
- S&P DJI unveils comprehensive China index
- Euronext introduces the Euronext BeNe 40 Equal Weight Index
- Northern Trust’s FlexShares introduces US quality large-cap ETF
- UBS launches smart beta factor ETFs
- Goldman Sachs joins smart beta revolution with launch of “ActiveBeta” ETF
- Reaves Asset Management launches actively managed utilities ETF
- Source anticpates increased retail demand for ETFs
- ProShares launches S&P 500 ex-sector ETFs
iShares has unveiled the iShares MSCI Saudi Arabia Capped ETF (NYSE Arca: KSA), offering investors an opportunity to gain direct exposure to Saudi Arabian equities. The fund tracks the performance of the MSCI Saudi Arabia IMI 25/50 Index and is the first western-listed ETF to track Saudi Arabia’s stock market. Gerardo Rodriguez, senior emerging markets strategist at BlackRock, said: “Investors are increasingly looking to emerging and frontier markets for diversification in their global portfolios. As the largest economy and equity market in the Middle East, Saudi Arabia’s recent opening could represent a compelling opportunity for those looking to broaden their exposures.”
S&P Dow Jones Indices, a leading index provider, has introduced the S&P China 500 Index, covering all Chinese share classes including A-shares and offshore listings. “Despite the short-term challenges impacting the market, Chinese equities remain a key part of long-term investment strategies for many global investors given the size and importance of the Chinese economy and stock market,” said Michael Orzano, Director of Global Equity Indices at S&P Dow Jones Indices. “By introducing the S&P China 500 Index, we are proud to reaffirm our commitment to the Chinese market and to further expand the toolkit of China indices available to global investors.” The index has been licensed to ICBC Credit Suisse Asset Management for ETF development.
Euronext, a leading European exchange operator and index provider, has launched the Euronext BeNe 40 Equal Weight Index, an alternatively weighted index tracking the 40 most traded companies in the BEL 20 and AEX indices. The index is designed to act as the basis for index-linked products such as exchange-traded funds and structured products. Paris-based asset manager Natixis, parent of smart beta ETF specialist Ossiam, has already licensed the index for the creation of structured notes.
FlexShares, the exchange-traded funds brand of Northern Trust, has introduced the FlexShares US Quality Large Cap Index Fund (QLC), a multi-factor smart beta ETF investing in US large-cap equities that exhibit discernible quality, value and momentum characteristics. The ETF is designed to outperform the broader US large-cap universe through factor tilts that have historically provided excess returns over market-cap weighted indices. “The FlexShares Quality Large Cap Index fund offers targeted exposure to value and momentum factors providing investors with an efficient multi-factor core equity portfolio holding,” said Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group.
UBS Global Asset Management, a leading European exchange-traded fund issuer, has rolled out a suite of smart beta equity ETFs that allow investors to target specific factor exposures within the eurozone and the US. “The new UBS factor ETFs complement many portfolios well within the strategic asset allocation and contribute to improved diversification,” said Dag Rodewald, Head of UBS ETFs for Germany and Austria. “They can also be used tactically, as the form of the factor premiums does not remain constant over time. Our range of ETFs on various factors and for two of the world’s most important economic regions provides investors with the greatest possible flexibility.”
The great commodity bear market continues to endure with many long broad-market commodities exchange-traded products encountering their fifth consecutive year of price declines. This year alone, the ETFS All Commodities ETC (AIGC LN), which tracks the Bloomberg Commodity Index, is down 13.9% as of 14 August, having fallen 45.5% over four years. Amid the gloom, however, plenty of profits can still be had on the long side, with buying opportunities often driven by commodity-specific issues such as supply concerns. Two commodities which have bucked the downward trend recently are coffee and cotton, with ETPs linked to these softs enjoying impressive rallies.
FlexShares, the exchange-traded funds arm of Northern Trust, has introduced the FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) offering exposure to long-maturity US corporate bonds complemented by a credit evaluation process. The strategy is designed to provide investors with the yield benefits of longer maturity (10+ years) investment grade corporate bonds, while offering a method of capital protection through credit evaluation and improved liquidity. “The FlexShares Credit-Scored US Long Corporate Bond Index Fund provides investors with a contemporary approach to optimising credit risk, with improved transparency and liquidity relative to legacy corporate bond benchmarks,” said Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group.
Direxion Investments, a US-based provider of short and leveraged exchange-traded funds, has launched two pairs of ETFs which seek to deliver 2x long and 2x inverse exposure to the cyber security and pharmaceutical industries. “Traders and investors continue to express keen interest in the cyber security and pharmaceutical sectors,” said Sylvia Jablonski, Managing Director at Direxion. “Our new leveraged ETFs enable traders to benefit from exposure to these industries, regardless of market conditions and sector performance, in a flexible way.”
The Shanghai Stock Exchange and China Securities Index have announced the launch of the first China index targeting carbon-efficient companies: the SSE 180 Carbon Efficient Index. The new index enables investors to track the performance of low carbon-emitting Chinese companies and can also be used as the basis for index-linked products such as exchange-traded funds. There has been a surge in demand for environmental, social and governance (ESG) indices this year, with MSCI recently reporting a 30% rise in ETF assets tracking ESG indices to $1.8bn. Considering China’s economic development strategy, which increasingly emphasises the need for green and low-carbon growth, the index is well placed to benefit from this structural shift in the economy.