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.
‘ Global ’
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.
SPDR ETFs, the exchange-traded funds platform of State Street Global Advisors (SSgA), has expanded its equity income line-up with the launch of global and pan-Asian ‘Dividend Aristocrats’ ETFs on the London Stock Exchange and Deutsche Börse (Xetra). Scott Ebner, head of global product development at SSgA, said: “Our approach to dividend investing at SPDRs has been centred around indices that not only favour high-yielding stocks, but also focus on the sustainability of yield”.
Global inflows into exchange-traded products (ETPs) slowed a little in April 2013 to $10.3 billion, according to the latest ETP Landscape report from BlackRock. However, as of April month end, ETPs have seen inflows of $79.9 billion in the year to date, which is more than $13 billion ahead of the $66.3 billion of inflows collected during the same period last year. This is despite a major setback for gold ETPs, which have been hit with outflows of almost $18 billion.
FTSE Group, a leading global index provider, has launched the FTSE ET100 Index, an index measuring the performance of companies whose core business is in the development and operation of environmental technologies. There are now 21 indices in the wider FTSE Environmental Markets Series, a number of which are linked to by investment products, such as the Euronext Paris-listed EasyETF FTSE Environmental Opportunities 100.
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.
Smart beta is a term that seems to have suddenly emerged out of nowhere to describe the rise of a new form of ‘passive’ investing. The very words themselves conjure up a certain egg-headed technical prowess, implying that all the other beta trackers out there are just “back of the class” dullards, market capitalisation based, one-trick ponies that don’t do all the clever stuff that smart beta trackers can accomplish with their quantitative prowess. Scratch beneath the surface though and we discover a slightly more honest admission by the ETF industry.
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.
Northern Trust has expanded its line-up of FlexShares exchange-traded funds (ETF) with the launch of three dividend-oriented equity funds that pursue income potential and long-term capital growth from a universe of international developed and emerging market stocks. The new funds complement the provider’s existing ‘quality dividend’ suite, creating a diversified set of strategies.
Stoxx, a leading provider of financial market indices, has introduced the Stoxx Global 3D Printing Tradable Index. The new index tracks the performance of companies that generate revenues directly from 3D printing, described by US President Barack Obama as “the next revolution in manufacturing”. The index has been specifically designed to underlie exchange-traded funds (ETFs) and other investable products, and will enable investors to participate in the performance of the booming 3D-printing industry.