Boost unveils triple inverse US Treasury ETP on LSE

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Boost unveils triple inverse US Treasury ETP on LSE

Boost, a leading European provider of short and leveraged exchange-traded products and a division of US ETF sponsor WisdomTree, has added a further inverse fixed income ETP to its growing armoury of products, this time with the launch of a product linked to US government bonds. Listed on the London Stock Exchange, the newly launched Boost US Treasuries 10Y 3x Short Daily ETP (3TYS) provides triple inverse exposure to the BNP Paribas US Treasury Note 10Y Future Index, an index reflecting the performance of intermediate-term US Treasuries.

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Latest news

ETFs off to a strong start in second half of year ETPs off to a strong start in second half of year

The second half of the year got off to a strong start as global ETP flows reached $32.0bn in July, according to the latest ETP Landscape Report from BlackRock, the parent of iShares. Ursula Marchioni, Head of ETP Research EMEA at iShares, said: “The industry is maintaining a healthy pace and inflows so far this year are broadly in line with what they were this time last year. On a year-to-date basis, the global ETP market is growing at an annualized rate of 17%, and the European market at 24%. The European ETP industry has gathered more than $42bn this year.”

Source unveils third JP Morgan Macro Hedge volatility ETF Source unveils third JP Morgan Macro Hedge volatility ETF

Source, a leading European provider of exchange-traded funds, has launched its third volatility ETF in collaboration with investment bank JP Morgan. Listed on the London Stock Exchange, the Source JP Morgan Macro Hedge Dual Vega Target 4% TR UCITS ETF (MHVT) aims to provide cost-effective exposure to volatility and is designed for sophisticated investors. The fund switches from long to long/short US equity exposure depending on market conditions. During times of market stress, it adds long exposure to European equity volatility.

Boost launches 3x short UK government bond ETP on LSE Boost launches 3x short UK government bond 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 inverse fixed income ETP. Listed on the London Stock Exchange, the Boost Gilts 10Y 3x Short Daily ETP (3GIS) will provide a return comprised of three times the inverse daily performance of the BNP Paribas Long Gilt Future Index, plus the interest revenue earned on the collateralised amount. The BNP Paribas index tracks front-month long-Gilt futures, which are traded on LIFFE and deliver UK government bonds with 8.75-13 years to maturity.

FTSE introduces new global factor indices FTSE introduces new global factor indices

FTSE, a leading provider of indices to the exchange-traded funds industry, has announced the launch of the FTSE Global Factor Index Series, a new suite of indices designed to represent the performance of specific factors. A factor can be thought of as any characteristic relating a group of securities that is important in explaining their return and risk. The new indices are derived from the market capitalisation-weighted FTSE Developed and FTSE Emerging stock universes and are constructed to achieve a controlled exposure to the following factors: liquidity, momentum, quality, size, value and volatility.

Equities

Compass EMP introduces downside hedged US small-cap ETF Compass EMP introduces downside hedged US small-cap ETF

Compass Efficient Model Portfolios has launched its fourth “smart beta” exchange-traded fund on the Nasdaq stock market. The listing follows last month’s ETF debut by the Tennessee-based investment adviser. Compass EMP’s latest ETF, the Compass EMP US Discovery 500 Enhanced Volatility Weighted Index ETF (CSF), is designed to offer investors US small-cap exposure while ameliorating downside risks by reducing equity exposure in the event of a market decline. Stephen Hammers, Chief Investment Officer of Compass EMP Funds, said: “It’s exciting to introduce our latest, innovative smart beta product that seeks to outperform both traditional indexes as well as active ETFs over the long-term.”

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

Source and Pimco cross-list short maturity ‘MINT’ ETFs on SIX Swiss Exchange Source and Pimco cross-list short maturity ‘MINT’ ETFs on SIX Swiss Exchange

Source, a European provider of exchange-traded funds, and Pimco, a global investment manager, have cross-listed two of their most popular ETFs on the SIX Swiss Exchange: the Pimco Euro Short Maturity Source UCITS ETF (PJS1) and Pimco US Dollar Short Maturity Source UCITS ETF (MINT). Fabrizio Palmucci, Fixed Income Product Specialist at Source, said: “Since their launch, the two funds have grown to become the largest actively managed fixed income ETFs in all of Europe…The combination of a proven fixed income manager, a successful investment strategy, a relatively low level of risk, all offered in a transparent and highly liquid structure is clearly meeting the needs of European investors.”

Alternatives / Multi-Asset

Direxion rolls out new leveraged US equity and treasury bond ETFs Direxion rolls out new leveraged US equity and Treasury bond ETFs

Direxion Investments, a leading provider of short and leveraged exchange-traded funds, has listed three new 2x leveraged ETFs on the NYSE Arca, offering exposure to the NYSE 7-10 Year Treasury Bond, S&P Mid Cap 400 and Russell 2000 indices. Brian Jacobs, President of Direxion Investments, said: “These three ETFs are part of our effort to build up our suite of 2x leveraged funds and provide as many options as possible for experienced traders to achieve risk-managed returns regardless of market conditions, or their preferred amount of leverage.”

ETF and Index News

Outcome-oriented investment approaches driving institutional ETF adoption Outcome-oriented investment approaches driving institutional ETF adoption

Cerulli Associates, a Boston-based asset management research firm, has published research noting that interest in specific investment outcomes will play a major part in driving institutional exchange-traded fund adoption. Outcome-oriented investment approaches typically ignore conventional benchmarks and instead focus on achieving a particular goal. “Smart beta” strategies appear to have a growing roll in this investment approach. One ETF sponsor told Cerulli that institutional use of smart beta will be a key driver of institutional asset management mandates over the next three years and that exposure will likely come via ETFs.