Archive for July 2012

ESMA ETF guidelines ‘strongly welcomed’ by EDHEC-Risk Institute

Jul 31st, 2012 | By
ESMA ETF guidelines strongly welcomed by EDHEC-Risk Institute

EDHEC-Risk Institute, a financial research facility of the respected EDHEC business school, has ‘strongly welcomed’ the UCITS ETF guidelines released last week by the European Securities and Markets Authority (ESMA). According to EDHEC-Risk Institute, the guidelines are consistent with both the conclusions of their own research on ETF risks and ESMA’s consultation paper. However, the institute notes that the guidelines go further than the consultation document in two notable areas: securities lending and financial indices.



BlackRock Canada debuts suite of minimum volatility iShares ETFs

Jul 31st, 2012 | By
BlackRock Canada launches new suite of minimum volatility iShares ETFs

BlackRock Canada has announced that its iShares business has launched a suite of five minimum volatility ETFs to the Canadian marketplace. Mary Anne Wiley, Head of iShares, BlackRock Canada, said the funds “offer investors a unique opportunity to retain equity exposure in their portfolio while seeking to reduce the overall equity risk in these turbulent times.”



European regulator ESMA publishes UCITS ETF guidelines

Jul 30th, 2012 | By
European regulator ESMA publishes UCITS ETF guidelines

After a period of consultation, ESMA has published its guidelines on UCITS ETFs. Despite the potential for higher compliance costs and curtailment of profitable securities lending activities, the guidelines have broadly been welcomed by ETF providers and represent a positive step towards ensuring investors better understand the risks and attributes associated with exchange-traded products (ETPs).



Emerging markets ETFs expected to outperform as IFAs shun Europe

Jul 30th, 2012 | By
Emerging markets ETF redux by David Stevenson

Research from Legal & General Investments shows emerging markets to be the most popular geographical investment destination in the next six months, with two fifths (40%) of independent financial advisers (IFAs) choosing it as the likely best performer in the short term. When it comes to emerging markets ETFs, investors are spoilt for choice with a huge range of ETFs offering broad, regional, country and sector exposure.



S&P reaffirms UK’s AAA rating; positive news for gilt-based ETFs

Jul 30th, 2012 | By
S&P reaffirms the UK's AAA rating; positive news for gilt-based ETFs

Standard & Poor’s has reaffirmed the UK’s ‘AAA’ credit rating. The stable outlook reflects the expectation that the UK government will continue to consolidate public finances, enabling government debt as a percentage of GDP to stabilise by 2014 before declining in 2016 and beyond, and that an economic recovery will begin to gain traction. The news is encouraging for gilt-based ETFs, which have proved popular with investors seeking protection from the ongoing turmoil in the Eurozone.



Passive investing gaining momentum; beneficial for IFAs, says Defaqto

Jul 30th, 2012 | By
MSCI reports all factor indices positive for third consecutive month

Passive investing is gaining greater traction in the UK as the adviser community becomes frustrated with the performance and cost of many active funds, says Defaqto. The independent financial research company also suggests that product development from passive fund groups, recent new entrants to the market and cost pressures imposed by regulation, all point to further growth of passive investments such as ETFs.



Huntington Strategy Shares rolls out Huntington US Equity Rotation Strategy ETF (HUSE)

Jul 30th, 2012 | By
AdvisorShares announces the launch of the Pring Turner Business Cycle ETF (DBIZ)

US-based Huntington Asset Advisors has announced the launch of a second actively managed ETF through its new ETF family, Huntington Strategy Shares. The Huntington US Equity Rotation Strategy ETF (HUSE) has been listed on the NYSE Arca and seeks capital appreciation in any given market environment by overweighting industry sectors or segments the adviser believes to offer the best potential, while underweighting those that are expected to underperform.



S&P Dow Jones launches S&P Target Date Style Index Series

Jul 30th, 2012 | By
Outcome-oriented investment approaches driving institutional ETF adoption

S&P Dow Jones Indices has launched a series of target date indices. The S&P Target Date Style Index Series is designed to help defined contribution plan sponsors screen, select and monitor target date funds by providing separate performance comparisons for “to” versus “through” glide paths. Glide path refers to the tendency of a target date fund’s asset allocation to become more conservative as the fund’s target date approaches.



S&P Dow Jones collaborates with Goldman Sachs to create S&P GIVI China A-Share

Jul 24th, 2012 | By
S&P Dow Jones collaborates with Goldman Sachs to create S&P GIVI China A-Share

S&P Dow Jones Indices has announced the launch of the S&P GIVI China A-Share, the first index of its kind in the Chinese market to combine low volatility and an alternative weighting scheme that weights a stock by intrinsic value, rather than market-capitalisation. The index, created in collaboration with Goldman Sachs, seeks to provide investors with better risk-adjusted exposure to the Chinese A-share equity market.



Source Physical Gold ETC (SGLD) hits $2.5 billion in assets

Jul 24th, 2012 | By
Gold ETFs set to benefit as 'fear trade' intensifies, reports World Gold Council

Source has announced that its physical gold ETC has crossed $2.5 billion in assets. The Source Physical Gold P-ETC (SGLD), which is secured by physical metal held in JP Morgan’s London vaults, is now among the largest exchange-traded physical gold products globally. Stefan Garcia, head of commodity ETC sales at Source, said, “Investors look to precious metals as both an investment opportunity and a safe haven. The concept of a physical holding, coupled with the ability to access it in times of crisis, is part of their appeal.”