Source, a London-based provider of exchange-traded funds (ETFs), has announced the launch of the Source Morningstar US Energy Infrastructure MLP UCITS ETF on the London Stock Exchange. The ETF is linked to the Morningstar MLP Composite Index and is the first in Europe to offer dedicated exposure to US energy infrastructure Master Limited Partnerships (MLPs), which are booming as a result of the development of unconventional energy sources such as shale gas, tight oil and tar sands.
‘ ETNs and ETCs ’
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.
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.
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.
Alerian, the index provider to the JPMorgan Alerian MLP Index ETN (AMJ) and Alerian MLP ETF (AMLP), has unveiled two new indices tracking the North American energy infrastructure and Master Limited Partnership (MLP) sectors. The newly launched Alerian Energy Infrastructure Index and the Alerian MLP Equal Weight Index provide investors with new benchmarks encompassing a broader range of capitalisation, asset, and geographic exposure.
VelocityShares, a US-based provider of exchange-traded products best known for its VIX ETNs, has rolled out three exchange-traded funds (ETFs) providing exposure to various emerging markets via American Depositary Receipts and Global Depositary Receipts. The funds, which have been listed on the Nasdaq Stock Market and are linked to BNY Mellon DR Indices, provide access to broad emerging markets, emerging Asia, and Russia.
Fund managers are increasingly confident in the outlook for the dollar, according to the latest BofA Merrill Lynch Fund Manager Survey. This month registered the highest level of dollar bullishness in the survey’s history with a net 72% of respondents expecting the US currency to appreciate over the next year. The overwhelming bullishness for the dollar bodes well for exchange-traded funds offering long exposure to the currency, such as the Pimco US Dollar Short Maturity Source ETF (MINT).
Boost ETP, a London-based provider of exchange-traded products (ETPs), has added new GBP trading lines to a number of its London-listed products. Prior to now, Boost’s products were only tradable in the base currency of their underlying index, which for many of the products is either USD or EUR. The addition of GBP trading lines for non-GBP-linked products should make them more accessible and cost-effective to UK investors.