FTSE Group, a London-based global index provider, has revealed that assets under management in exchange-traded funds (ETFs) linked to the FTSE EPRA/NAREIT Global Real Estate Index Series have surpassed $10 billion. The index series is one of the most widely followed gauges of property and real estate investment trust (REIT) performance and has been adopted by numerous ETF sponsors, including iShares, Lyxor, Deutsche Bank and First Trust.
Alternatives / Multi-Asset
Global short and leveraged exchange-traded product (ETP) assets rose by $4.4bn in the first four months of 2013, to $48.5bn, according to data released by Boost ETP. The growth in assets is a reflection, in part, of the increased breadth and depth of products available, improved education and understanding, and a general move by investors towards more transparent, exchange-traded products.
IndexIQ, a US-based specialist provider of exchange-traded funds (ETFs), best known for its hedge fund-style products, has surpassed $1 billion in assets under management. Adam Patti, IndexIQ’s chief executive officer, said: “In a few short years, liquid alternatives have gone from a novelty to playing an important role in a diversified investment portfolio and we’ve seen strong interest in our offerings from the institutional and retail advisor channels.”
Stoxx, a leading index provider, has introduced the Euro Stoxx 50 BuyWrite 100% Index. The index measures the performance of a buy-write or covered-call strategy based on the Euro Stoxx 50 Index, the eurozone’s leading blue-chip equity index. The new index, which has been designed to underlie index-linked financial products such as exchange-traded funds (ETFs), represents a hypothetical portfolio of a long position in the Euro Stoxx 50 and a sold – or written – call option based on the same index.
By David Stevenson – My old Uncle Fred was nothing if not brutally honest – every week I’d pop along to see him in his wonderfully clean care home and tell him my latest idea that would change the world. He’d snort loudly and derisively, draw deeply on the 28th fag of the day and then warn me that just because you think it’s a good idea and say so loud enough regularly, doesn’t mean anyone will actually do anything about it! Uncle Fred’s brutal pessimism still lingers in my mind as I survey the vaulting ambitions of the ETF industry.
The price of carbon has plunged in value after the European parliament rejected a plan to revive the Emissions Trading System, the European Union’s carbon trading programme, by shoring up the price of emissions permits. The sell-off has been mirrored in exchange-traded products (ETPs) indexed to emissions permits, with ETF Securities’ LSE-listed ETFS Carbon ETC (CARP) down around 43% since the vote and Barclays’ NYSE-listed iPath Global Carbon ETN (GRN) off some 46%.
Credit Suisse has added to its range of innovative exchange-traded notes (ETNs) with the launch of the Credit Suisse Silver Shares Covered Call ETN (SLVO), an ETN providing exposure to a covered call strategy on iShares Silver ETF (SLV). The new product, which is designed to pay out variable monthly coupons, is the second precious metals covered call strategy launched by Credit Suisse and follows the January launch of GLDI, an ETN tracking a similar strategy on gold.
Direxion, a leading US-based provider of alternative exchange-traded funds (ETFs), has launched two new leveraged equity ETFs on the NYSE Arca, the Direxion Daily Brazil Bull 3x Shares ETF (BRZU) and Direxion Daily South Korea Bull 3x Shares ETF (KORU).
First Trust Advisors, an investment management firm perhaps best known for its range of AlphaDEX ETFs, has filed a preliminary prospectus with the securities regulatory authorities in Canada for its first suite of Canadian domiciled exchange-traded funds (ETFs). The US-headquartered firm also recently revealed plans to expand into Europe, to be kicked off with the launch of three AlphaDEX ETFs on the London Stock Exchange, subject to regulatory approval.
Boost ETP, a leading provider of short and leveraged exchange-traded products (ETPs), has announced that its three-times leveraged long and short DAX products have been listed in sterling on the London Stock Exchange. The new GBP listings complement the products’ existing EUR listings, making them more accessible to UK investors, with tighter relative spreads. The listing follows a similar move last week, which saw the provider’s oil, gold and silver products also gain new GBP trading lines.