Lyxor, Europe’s third largest provider of exchange-traded funds, has extended its fixed income line-up with the launch of double short ETFs linked to the government bonds of the United States, the United Kingdom and Japan.
The ETFs are two times inversely linked to the performance of each country’s benchmark 10-year government bond and thus provide investors with a tool to help protect their portfolios from rising interest rates. The products could also be used for short-term trading purposes by investors anticipating a rate rise.[continue reading...]
- Lyxor introduces double short ETFs on Treasuries, gilts and Japanese government bonds
- Fixed income ETFs poised for bigger role in institutional portfolios
- Boost lists new short and leveraged ETPs on Borsa Italiana
- SSgA SPDR introduces short-term TIPS ETF
- iShares expands actively managed factor ETF offering
- WisdomTree’s European small-cap dividend ETF surpasses $1 billion in assets
- S&P Dow Jones launches equal weight version of S&P Europe 350
- European ETF industry staging comeback, says Cerulli
- PowerShares International BuyBack Achievers ETF goes live on Nasdaq
- ETF dedicated to LGBT equality and inclusion lists on NYSE
- DeAWM offers interest rate hedged access to popular fixed income ETFs
- Assets under management surge at Boost ETP
Fixed income exchange-traded funds (ETFs) are poised to take on a bigger role in institutional portfolios, according to a new report from Greenwich Associates, a financial services industry research firm. Institutional investors are making sweeping changes to their fixed income portfolios in response to the post-crisis regulatory changes in the bond markets, current interest-rate environment and expectations of future rate increases. The report suggests that these responses could provide a significant boost to ETF use by institutions.
Boost, a specialist provider of short and leveraged exchange-traded products (ETP), has listed a further six ETPs on Borsa Italiana. The new listings take the total number of Boost products on the Milan-based exchange to 20. The new products are linked to the Nasdaq 100, Russell 1000, Nasdaq Commodity Silver and Nasdaq Commodity Natural Gas indices, and provide a mix of double and triple long and short exposures.
State Street Global Advisors (SSgA) has enhanced its fixed income product suite with the launch of the SPDR Barclays 0-5 Year TIPS ETF (SIPE) on the NYSE Arca. The fund, which is linked to the Barclays 0-5 Year US Government Inflation-linked Bond Index, offers investors a potential opportunity to protect their portfolios from inflation and diversify their fixed income allocations to prepare for rising interest rates.
iShares, the exchange-traded funds business of BlackRock, has expanded its factor ETF line-up with the launch of two “enhanced” international equity ETFs on the NYSE Arca. The iShares Enhanced International Large-Cap ETF (IEIL) and iShares Enhanced International Small-Cap ETF (IEIS) seek to provide competitive risk-adjusted returns compared to broad international large-cap or small-cap indices, respectively. Rather than tracking an index, the new ETFs are actively managed using BlackRock research.
WisdomTree, an exchange-traded fund sponsor and asset manager, has announced the WisdomTree Europe SmallCap Dividend Fund (DFE) recently surpassed $1 billion in assets. The NYSE Arca-listed ETF, which made its debut in June 2006, is designed to provide exposure to the small-capitalization segment of the European dividend-paying market. Assets under management in the fund have benefited from positive flows and strong market performance.
AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), has unveiled an industry-first suite of ETFs providing gold exposure in different currency terms. Listed on the NYSE Arca and launched in partnership with Dennis Gartman, editor and publisher of The Gartman Letter, and Treesdale Partners, a New York-based registered investment advisor with expertise in managing currency/commodity-based investment products, the ETFs seek to provide positive returns by utilizing liquid, non-US dollar currencies to invest in the gold market.
Deutsche Asset & Wealth Management (DeAWM) has launched a range of interest rate hedged fixed income ETF share classes. The range includes a rates hedged version of its highly successful ETF providing exposure to higher yielding Eurozone sovereign debt, which generated significant inflows in 2013. The new share classes, which have been listed on the Deutsche Börse, are designed for investors who wish to maintain full credit exposure to underlying bond markets while hedging the interest rate risk.
Assets under management at Boost ETP, Europe’s only issuer of exchange-traded products dedicated to short and leveraged exposures, have surged to $75 million, equivalent to a notional leveraged-adjusted value of $209 million. Consistent with rising AUM has been a significant increase in on-exchange traded volumes, with traded volumes of the firm’s products on the London Stock Exchange and Borsa Italiana recently averaging around $10 million per day.
An evolving distribution landscape and an increasingly cost-conscious investor base could revive the fortunes of the European exchange-traded funds industry following a dramatic fall in growth in 2013, according to a report from Cerulli Associates, a research firm specializing in the financial services industry. Last year, net new flows to European ETFs slumped 25% to €13.8 billion, down from the €19 billion seen in 2012. It was a far cry from the heady days of 2008 when inflows hit more than €52 billion.