Archive for January 2012

Vanguard’s Gus Sauter calls for responsible ETF innovation

Jan 31st, 2012 | By
Vanguard CIO calls for responsible ETF innovation

During a speech at the recent IndexUniverse “Inside ETFs” conference, Vanguard Chief Investment Officer Gus Sauter said that the ETF industry has been characterised by “growth and innovation” which has largely been good news.

However, Sauter noted that ETFs have been blamed for a wide range of problems and, though fully rebutting the criticism, he challenged the ETF industry to be responsible in developing new products and called for greater efforts to educate investors.

AdvisorShares expands active ETF range with launch of country rotation strategy

Jan 31st, 2012 | By
AdvisorShares expands active ETF range with launch of country rotation strategy

AdvisorShares has added to its range of active ETFs with the launch of the AdvisorShares Accuvest Global Opportunities ETF. The fund implements a global country rotation strategy that seeks long-term capital appreciation in excess of global equity benchmarks. The strategy utilises a country ranking model to sort single-country ETFs from most attractive to least attractive based on a range of fundamental, technical and valuation factors.

ESMA outlines future regulatory framework for UCITS ETFs

Jan 30th, 2012 | By
ESMA, EBA warning highlights benefits of short and leveraged ETFs and ETPs over CFDs

After much anticipation, the European Securities and Markets Authority (ESMA) has published draft guidelines on the future regulatory framework of UCITS ETFs. The guidelines come after repeated concerns have been raised about the transparency and suitability of certain exchange-traded products – most notably relating to swap-based structures and securities lending – following dramatic growth and innovation in the ETF industry over the past few years.

Amundi lists strictly “AAA rated” eurozone bond ETF

Jan 30th, 2012 | By
PowerShares cross-lists PIMCO eurozone high yield ETF on SIX

Amundi has launched an ETF based on the EuroMTS Highest Rated Government 1-3 Index, an index which provides exposure to only the highest-grade eurozone sovereign bonds. Reviewed on a monthly basis, the index is composed of government bonds with a maturity of 1-3 years issued by eurozone member states with at least two equivalent ratings of “AAA” from either S&P, Moody’s or Fitch. Constituents currently include Austria, France, Finland, Germany and the Netherlands.

ProShares launches first US-listed ETF focused on German sovereign debt

Jan 27th, 2012 | By
German election results likely to have muted impact on ETFs

ProShares has launched the ProShares German Sovereign/Sub-Sovereign ETF, the first US-listed ETF focused on sovereign and sub-sovereign debt from Germany. Germany has the world’s third-largest public debt market and is widely recognised for its fiscal strength. The fund’s constituents include only investment grade debt, the majority of which currently has the highest rating from Standard & Poor’s, Moody’s and Fitch, with none currently rated lower than AA.

Africa ETFs: Investors warm to Africa

Jan 25th, 2012 | By
Africa’s emerging middle class is catching investors’ eyes, ahead of commodities and natural resources.

Institutional investors intend to make their first significant step into Africa over the next five years, says a report by the Economist Intelligence Unit. According to Mohammed Al Hashemi, head of asset management at Invest AD, the commissioner of the report, “over the next five years, the bulk of the investors will have an allocation into Africa”. He attributed this increase in investment into Africa to urbanisation, greater consumer spend and the rise of the middle class.

Gold Mining ETFs: Analysts tip gold equities to outperform in 2012

Jan 24th, 2012 | By
US Global Investors launches precious metal miners ETF

Gold prices have risen substantially over the past 10 years, but gold equities haven’t kept up. Shares of gold mining companies have now underperformed gold bullion to such an extent that sector P/E and EV/EBITDA ratios are near 20-year lows. Consequently, gold equities are among analysts’ top picks to outperform in 2012, with banks including Deutsche Bank, Morgan Stanley and Nomura all bullish on the sector.

Eurozone crisis demonstrates value of index investing, says Vanguard

Jan 24th, 2012 | By
Peter Westaway, Chief Economist, Europe, at Vanguard.

Vanguard’s European Chief Economist argues that the ongoing uncertainty in the eurozone demonstrates the value of an index investing approach. Peter Westaway, whose experience includes lengthy stints at the Bank of England and HM Treasury, says that markets may have priced in risks correctly, or they may have underpriced or overpriced risk, but by owning the entire market investors can ensure that they receive the market return (less expenses) regardless of how the crisis unfolds.

BATS wins first primary listings as iShares debuts ETFs

Jan 24th, 2012 | By
Joe Ratterman, Chairman and CEO of BATS Global Markets

BATS Global Markets has announced that the iShares MSCI Norway Capped Investable Market Index ETF has begun trading on the BATS Exchange, with other iShares funds set to follow soon. Luring iShares to BATS as a destination for primary listings constitutes a major success for the seven-year-old alternative trading system as it aims to take market share from larger rivals.

iShares expands commodity range with four new ETFs

Jan 23rd, 2012 | By
iShares expands commodity range with four new ETFs

iShares has expanded its commodity range with the launch of four new ETFs offering diversified exposure to agriculture, energy, industrial metals and the broad commodity market. The four funds have been listed on the London Stock Exchange and track sectors of the S&P GSCI Dynamic Roll Index. By using the ‘dynamic roll’ version of the S&P GSCI, iShares hopes to alleviate the negative impact of rolling into contango and potentially limit volatility exposure to the commodity market.