Archive for April 2012

Infrastructure ETFs provide a degree of certainty during market volatility

Apr 28th, 2012 | By
Lyxor launches US and European infrastructure ETFs

In an environment of high inflation and above average volatility, infrastructure ETFs offer a number of attractive characteristics. First, infrastructure assets can act as a portfolio risk reduction tool due to the sector’s low correlation with the broader global equity market. Second, infrastructure assets deliver a regular and dependable income stream. And third, infrastructure can act as a partial hedge against inflation due to the inelasticity of demand resulting from the near-monopolistic positions of many infrastructure assets.

ETF industry’s “position and prospects remain favourable”, says Moody’s

Apr 27th, 2012 | By
ETFs reveal valuable insights into market conditions, finds Vanguard.

The global ETF industry’s “position and prospects remain favourable”, according to a report by Moody’s Investors Services. “ETFs’ lower cost remains one of their most attractive attributes for investors, while many financial advisers have shifted to a fee-based from commission-based business model”, says Joanne Job, Moody’s analyst. Job also notes the poor performance of actively managed funds, an increasing awareness of ETFs as asset allocation tools, and product innovation as reasons for their growing popularity.

UBS lists next-generation commodity ETRACS ETN (BLND)

Apr 27th, 2012 | By
UBS lists next-generation commodity ETRACS ETN

UBS has launched the ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND), an exchange-traded note (ETN) providing exposure to the Dow-Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return. The index is constructed as an equally-weighted basket of the two-month, four-month and six-month forward versions of the Dow Jones-UBS Commodity Index. By diversifying exposure across multiple commodity futures maturities, the index seeks to limit concentration at any one point on the respective commodity futures price curve and mitigate the impact of negative roll yield.

SSgA debuts three active asset-allocation SPDR ETFs

Apr 26th, 2012 | By
First Trust launches SMID dividend achievers ETF

State Street Global Advisors (SSgA) has made its debut in the active ETF space with the introduction of three actively managed asset-allocation ETFs that provide investors with access to the firm’s institutional asset management expertise. The three funds, namely the SPDR SSgA Multi-Asset Real Return ETF (RLY), the SPDR SSgA Income Allocation ETF (INKM), and the SPDR SSgA Global Allocation ETF (GAL), use a fund-of-funds structure and are listed on the NYSE Arca.

iShares expands range of corporate credit quality bond ETFs

Apr 26th, 2012 | By
iShares augments suite of corporate credit quality bond ETFs

iShares has augmented its offering of corporate credit-rating segment bond ETFs with the launch of the iShares Baa–Ba Rated Corporate Bond ETF (QLTB) and the iShares B–Ca Rated Corporate Bond ETF (QLTC). The two new funds, both listed on BATS, are the first such ETFs designed to offer targeted exposure to the Baa–Ba and B–Ca credit-quality segments of the US corporate debt market. They follow the February launch, on the NYSE Arca, of the iShares Aaa–A Rated Corporate Bond ETF (QLTA).

Market Vectors rolls out Morningstar Wide Moat Research ETF (MOAT)

Apr 26th, 2012 | By
Morningstar reports strong growth in ETF Managed Portfolios

Van Eck Global has added to its line-up of ETFs with the launch of the Market Vectors Morningstar Wide Moat Research ETF (MOAT). The NYSE-listed ETF provides semi-active exposure to the US equity market. MOAT tracks the rules-based Morningstar Wide Moat Focus Index, an index which leverages research from Morningstar to identify companies with the potential to maintain long-term competitive advantages – so called ‘wide moats’.

Guggenheim expands suite of high yield defined-maturity BulletShares ETFs

Apr 26th, 2012 | By
iShares expands suite of target-maturity municipal bond ETFs

Guggenheim Investments has launched three new high yield corporate bond BulletShares ETFs on the NYSE Arca: the Guggenheim BulletShares 2016 High Yield Corporate Bond ETF (BSJG), the Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (BSJH) and the Guggenheim BulletShares 2018 Corporate Bond ETF (BSJI). The funds are part of Guggenheim’s suite of defined-maturity BulletShares ETFs, which now have over $1 billion in total assets.

Pimco to launch Global Advantage Inflation-Linked Bond Strategy ETF (ILB)

Apr 25th, 2012 | By
Pimco to launch Global Advantage Inflation-Linked Bond Strategy ETF (ILB)

Pimco has announced the forthcoming launch of the Pimco Global Advantage Inflation-Linked Bond Strategy ETF (ILB), an actively managed ETF designed to offer investors the potential for long-term returns above inflation. The fund, to be listed on the NYSE, will be managed by Mihir Worah and will actively invest in global inflation-linked bonds and currencies. ILB continues the expansion of Pimco’s range of actively managed ETFs, which marry Pimco’s experience managing fixed income investments with the tradability of an ETF vehicle.

Invesco Canada expands PowerShares offering with low volatility and high beta ETFs

Apr 25th, 2012 | By
Horizons launches Canadian equity smart beta ETF

Invesco has announced the listing of Canada’s first low-volatility Canadian equity index ETF, the PowerShares S&P/TSX Composite Low Volatility Index ETF (TLV), along with the country’s first high-beta index ETFs: the PowerShares S&P/TSX Composite High Beta Index ETF (THB) and the PowerShares S&P 500 High Beta (CAD Hedged) Index ETF (UHB).

Yorkville files to expand high income family of MLP ETFs

Apr 25th, 2012 | By
ETF Securities unveils US energy infrastructure MLP ETF

Yorkville ETF Advisors, a US-based provider of MLP investment products, has filed with the SEC to expand its rules-based series of ETFs, leveraging the firm’s research and asset management experience with master limited partnership (MLPs) investments. The filings include the Yorkville High Income Composite MLP ETF and the Yorkville High Income Infrastructure MLP ETF. The underlying indices to these funds are comprised of MLPs that meet certain criteria relating to current yield, coverage ratio and distribution growth.