Archive for December 2012

Short-duration bond ETFs offer protection against rising interest rates

Dec 19th, 2012 | By
Short-duration bond Exchange Traded Fund (ETFs) offer protection against rising interest rates as Fitch warns of bond bubble

Declining bond yields have created the potential for a ‘bond bubble’ under which rising interest rates could result in significant losses for fixed income investors, according to Fitch Ratings. So how should investors handle this? One option is to get out of bonds altogether. But, considering the diversification role bonds play and the income they offer, this is not entirely sensible or indeed practicable. A more moderate response would be to focus on shorter-duration bonds, which are less sensitive to interest rate rises.



Product innovation and commodities demand drive growth at ETF Securities

Dec 19th, 2012 | By
ETF Securities launches white-label ETF service

ETF Securities, one of the world’s leading providers of Exchange-Traded Commodities (ETCs), has seen its global assets under management appreciate by more than 22% between January and November 2012 to reach $30.2 billion. Net new inflows accounted for half of the $5.5 billion increase, driven by resilient investor demand for commodity exposure and an active product development programme involving 52 new ETP launches and some 70 ETC cross-listings on various exchanges around the world.



MSCI expands smart beta offering with launch of MSCI Quality Indices

Dec 19th, 2012 | By
WisdomTree and IQCIO launch ETF model portfolios

MSCI, a leading provider of financial market indices, has introduced the MSCI Quality Indices, a series of smart beta equity indices designed to reflect the performance of a quality growth strategy. The alternatively-weighted indices identify quality growth companies as represented by high returns on equity, stable earnings that are uncorrelated with the broad business cycle, and strong balance sheets with low financial leverage.



AdvisorShares launches Pring Turner Business Cycle ETF (DBIZ)

Dec 18th, 2012 | By
AdvisorShares announces the launch of the Pring Turner Business Cycle ETF (DBIZ)

AdvisorShares, a US-based sponsor of exchange-traded funds (ETF), has announced the launch of the AdvisorShares Pring Turner Business Cycle ETF (DBIZ), an actively managed ETF that seeks long-term growth and capital appreciation across all economic and market cycles through the application of fundamental, technical and business cycle analysis.



New index combines emerging market growth with developed market liquidity

Dec 17th, 2012 | By
Stoxx Global 1800 EM Exposed Index

Stoxx has introduced the Stoxx Global 1800 EM Exposed Index, a new index that represents those companies within the Stoxx Global 1800 Index that derive a substantial part of their revenues from emerging market countries. Designed to act both as a proper benchmark for actively managed funds and as an underlying to exchange-traded funds (ETFs) and other investable products, the index combines the benefits of higher growth rates associated with emerging markets with the superior liquidity, transparency, and lower trading costs of development markets.



Boost begins roll-out of triple-leveraged ETPs on London Stock Exchange

Dec 17th, 2012 | By
Boost celebrates anniversary as AUM tops $50m

Boost, Europe’s newest exchange-traded product (ETP) provider, has begun to roll out an initial line-up of ETPs on the London Stock Exchange. The first batch of products provide triple-leveraged long and short exposure to key European, UK, German and US equity markets. Aimed at sophisticated and experienced investors, leveraged long and short ETPs provide instant leverage to underlying markets in one single trade, making it possible to accentuate and exploit opportunities in sideways-trending markets.



db X-trackers lists its first physically replicated ETFs

Dec 17th, 2012 | By
db X-trackers lists first physically replicated ETFs

db X-trackers, Deutsche Bank’s exchange-traded funds (ETF) platform, has listed its first direct replication ETFs tracking major equity benchmarks. The listings follow last month’s announcement that is was to launch a range of physically replicated ETFs alongside its existing swap-based line-up. The new funds, which have been launched on the London Stock Exchange, track the FTSE 100, the EURO STOXX 50 and the EURO STOXX 50 ex Financials.



Vanguard launches dedicated ETF education microsite ahead of RDR

Dec 17th, 2012 | By
Source introduces new CPD-accredited ETP webinars

Vanguard Asset Management has launched a new educational ETF website designed to help UK financial advisers develop their knowledge of the exchange-traded fund (ETF) market ahead of December’s Retail Distribution Review (RDR) deadline. The website offers a range of interactive Continuing Professional Development (CPD) approved modules, as well as informative and useful tools to aid adviser learning.



S&P GSCI Cash Copper to serve as basis for Mirae Asset ETF

Dec 17th, 2012 | By
ETF Securities’ short commodity ETPs enjoy record inflows

S&P Dow Jones Indices has announced that its S&P GSCI Cash Copper Index, a commodity-based benchmark tracking the value of copper, has been licensed to Mirae Asset Global Investments to serve as the basis for an exchange-trade fund (ETF) to be listed on the Korea Exchange. The index is part of the S&P GSCI family, which is one of the most widely recognised series of commodity measures to represent the global commodity market beta.



Market Vectors’ High-Yield Municipal Bond ETF (HYD) surpasses $1bn milestone

Dec 17th, 2012 | By

The Market Vectors High-Yield Municipal Index ETF (HYD) has surpassed $1 billion in assets. The fund becomes the first high-yield municipal bond ETF, and one of five municipal bond ETFs overall, to pass this threshold. This milestone puts the entire Market Vectors suite of six municipal income ETFs over $2 billion in assets under management.