The London Stock Exchange (LSE) has slashed fees for market makers in exchange-traded funds (ETFs) in a bid to grow trade volumes and enhance liquidity. Gillian Walmsley, Head of fixed income products at the London Stock Exchange, said: “By lowering the volume thresholds for discounts and reducing the fees for registered market makers, our aim is to further grow trading volumes and support liquidity on our market, and to continue to attract issuers and investors from around the world to London.”
‘ ETF Securities ’
Clients of Barclays Stockbrokers, a leading UK-based execution broker, are increasingly using exchange-traded funds (ETFs) and exchange-traded commodities (ETCs) to capitalise on movements in key UK FTSE equity indices and precious metals markets, according to new analysis. Data for April 2013 revealed that FTSE-related ETFs accounted for four of the top ten most traded exchange-traded products for the month, with ETCs based on gold and silver accounting for three and two of the top ten spots, respectively.
By David Stevenson – Despite all the grim news surrounding gold, I find myself looking afresh at gold mining equity funds and wondering whether now is the time to start quietly increasing my exposure. In essence, investors face two equally dismal choices. Do they focus on investing with an active fund manager who will “know” which miners to back or do they invest in a passive ETF? The second equally lethal choice is whether they should back larger lower-cost miners or junior miners where the rewards could be huge?
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.
Standard Life recently revealed plans to enhance its wrap platform aimed at UK financial advisers. One of the key upgrades scheduled over the next 12 months is to deliver improved access to exchange-traded funds (ETFs). The move to enhance access to ETFs is reflective of the growing interest in the product since the introduction of the Retail Distribution Review (RDR).
Despite price gains across a range of commodities last week, many commodity investors remain deeply cautious and indeed bearish. This has led many to allocate capital to specialist short exchange-traded products (ETPs), which last week enjoyed one of their best ever weeks on record, in terms of asset flows. London-headquartered ETF Securities saw particularly strong inflows into its gold and copper-based products.
ETF Securities believes that the commodity super-cycle is far from over, despite recent falls in commodity prices which have wiped billions off the firm’s assets under management. The London-headquartered exchange-traded product (ETP) provider asserts that the main fundamental drivers of the super-cycle are still in force and that recent commodity price weaknesses are more related to business-cycle fluctuations and short-term commodity-specific supply increases than a change in structural fundamentals.
Expectations of a recovery for gold are mixed, according to a survey of Barclays Stockbrokers clients. Just under a third of respondents think the value of gold will bounce back above $1,500/oz in the next six months, while more than a quarter expect it to drop below $1,300/oz. The broker also revealed that the top five traded exchange-traded commodities (ETCs) in the week following the metal’s dramatic fall were all related to precious metals, comprising three gold ETCs – led by ETF Securities’ ETFS Physical Gold (PHAU) – and two silver ETCs.
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%.
Exchange-traded funds (ETFs) and related exchange-traded products (ETPs) linked to the inverse performance of the gold price have surged over the past few weeks as the precious metal has tumbled following downgrades from a number of prominent research houses. One of the best performing ETPs in this space is the London-listed Boost Gold 3x Short Daily ETP (3GOS), which provides triple short exposure to the gold price. It is up 48.5% month-to-date on the back of the dramatic sell-off.