Archive for February 2012

Bill Gross’s Pimco Total Return ETF (TRXT) set to be ‘bellwether’ active ETF

Feb 29th, 2012 | By
PIMCO swaps management team on flagship active bond ETF

The launch of the actively managed Pimco Total Return ETF (TRXT) will be a bellwether product for the nascent active ETF sector, predicts Strategic Insight, a fund data provider. Its success could inspire more firms to launch active ETFs. “Pimco’s Total Return ETF will be the first brand-name active ETF with a well-known fund manager behind it, and so it will be an important test case for the potential popularity of the ‘active ETF’ product structure,” says Loren Fox, head of ETF research at Strategic Insight.



ETF Securities expands Brent crude ETC range as geopolitical tensions rise

Feb 29th, 2012 | By
ETF Securities expands Brent crude ETC range as geopolitical tensions rise

ETF Securities has listed four new exchange-traded commodity (ETC) products on the London Stock Exchange, in recognition of Brent Crude’s growing importance as the new global benchmark for oil. The new products provide investors with long, leveraged, short and forward exposures to Brent Crude and add to the issuer’s existing range of 1-month, 1-year, 2-year and 3-year exposure products.



Vanguard urges investors to consider impact of fees as ISA season approaches

Feb 29th, 2012 | By
Vanguard urges investors to consider impact of fees as ISA season approaches

With investors losing far more in ‘silent killer’ management fees than they gain in ISA tax benefits, investors and advisers are being urged to look beyond their ‘favourite’ fund and focus on overall net returns. Nick Blake, Head of Retail at Vanguard Asset Management, says, “Increasingly, investors are searching out investments with low fees to control the impact of charges. The less the fund manager takes the more the investor keeps.”



SSgA launches new emerging markets and global equity SPDR ETFs

Feb 28th, 2012 | By
SSgA launches new emerging markets and global equity SPDR ETFs

State Street Global Advisors (SSgA) has announced the launch of two new SPDR funds on the NYSE, the SPDR MSCI EM 50 ETF (EMFT) and the SPDR MSCI ACWI IMI ETF (ACIM), tracking emerging market and global equities respectively. The SPDR MSCI EM 50 ETF provides investors with precise access to 50 of the largest MSCI Emerging Markets Index constituents, while the SPDR MSCI ACWI IMI ETF delivers exposure to a diversified All Country World portfolio of almost 9,000 stocks.



SSgA expands range of high yield ‘Dividend Aristocrats’ SPDR ETFs

Feb 28th, 2012 | By
SSgA expands range of high yield 'Dividend Aristocrats' SPDR ETFs

S&P Indices has announced the launch of the S&P UK High Yield Dividend Aristocrats and S&P Euro High Yield Dividend Aristocrats Indices. Both indices have been licensed to SSgA for the creation of SPDR ETFs, the SPDR S&P UK Dividend Aristocrats ETF (UKDV) and the SPDR S&P Euro Dividend Aristocrats ETF (EUDV). The funds are designed to track the performance of the highest dividend-yielding UK and eurozone companies, respectively, within the S&P Europe Broad Market Index.



Carbon-related ETPs outperform as carbon permit prices spike

Feb 28th, 2012 | By
Carbon and clean energy ETPs outperform on rising carbon prices

Exchange-traded products related to carbon have enjoyed a strong start to the year, driven in part by rising energy prices, but also by a spike in the price of carbon. The Barclays iPath Carbon ETN (GRN), for example, which tracks the performance of carbon emission permits, is up almost 30%. With climate change and rising carbon prices widely anticipated to impact the profitability of companies and portfolios over the coming decades, we highlight a number of specialist ETPs that can provide a hedge.



Two thirds of IFAs say cost ‘most important factor’ when choosing passive

Feb 28th, 2012 | By
Two thirds of IFAs say cost 'most important factor' when choosing passive

New research among IFAs by Legal & General Investments has shown that cost is the most important factor when choosing a passive investment provider, according to two thirds (65%) of advisers. Simon Ellis, Managing Director of Legal & General Investments, says: “The result of this research highlights how important cost has become in a period of significant market volatility and straightened times.”



iShares debuts two new dividend-focused equity ETFs

Feb 24th, 2012 | By
iShares debuts two new dividend-focused equity ETFs

iShares, the world’s largest manager of ETFs, has launched two new dividend-focused equity funds designed to provide access to high-yielding income stocks in fast-growing emerging markets and Asia/Pacific developed markets. Listed on the NYSE, the funds are the iShares Emerging Market Dividend Index ETF (DVYE) and the iShares Asia/Pacific Dividend 30 Index ETF (DVYA). The funds are expected to appeal to investors looking to combine international growth potential with the value characteristics of dividend-paying companies.



Guggenheim to close eight sub-scale ETPs in routine product rationalisation

Feb 23rd, 2012 | By
Guggenheim closes eight sub-scale ETPs in routine product rationalisation

US-based Guggenheim has announced the forthcoming closure of eight sub-scale ETPs in a routine rationalisation of the company’s product line-up. The affected ETPs account for less than 1% of Guggenheim’s ETP assets under management. Among the closures is the Guggenheim Ocean Tomo Patent ETF, a specialist equity fund that track stocks with the greatest patent portfolio values, such as Microsoft.



PowerShares expands High Beta family of ETFs

Feb 22nd, 2012 | By
PowerShares expands High Beta family of ETFs

Invesco PowerShares has announced the forthcoming listing of two new ETFs that will provide investors with access to high-beta strategies covering emerging and international developed markets. Last year, PowerShares launched the first ETFs covering high beta and low volatility strategies for the US market. Today, with over $1.3bn in AUM, the suite of PowerShares Global Factor-Driven ETFs equips investors with a full range of tools for increasing beta or lowering volatility in their portfolios.