WisdomTree, a leading provider of exchange-traded funds (ETFs), has listed an additional 12 ETFs on the Mexican stock exchange, the Bolsa Mexicana de Valores (BMV). All 12 equity ETFs are listed in the special international section of the BMV, the Sistema Internacional de Cotizaciones (SIC).
‘ Latin America ’
Last week, Brazil officially eliminated a tax that affected foreign buyers of Brazilian government bonds. The elimination of the tax represents positive news for exchange-traded funds (ETFs) with exposure to Brazilian government debt. And while there isn’t yet a pure-play Brazilian government bond ETF on the market, a number of funds are set to benefit, most notably those that provide access to emerging markets local currency debt.
S&P Dow Jones has expanded its Latin American product offering with the launch of the S&P MILA Financials and S&P MILA Resources indices. The indices are designed to measure the primary equity sectors represented on the MILA (or Mercado Integrado Latino Americano) market. The MILA is a regional equity trading platform integrating the main stock exchanges of Chile, Colombia and Peru.
Exchange-traded funds (ETFs) linked to frontier markets, such as the db X-trackers S&P Select Frontier UCITS ETF, present an enticing proposition for investors. Inherently a long-term investment opportunity, they not only offer potential for strong returns, but also provide an ideal means of portfolio diversification. With 22% of the world’s population, of which almost 60% is under 30 years of age, abundant natural resources and low labour costs, frontier markets are “too significant to ignore”, says Tim Drinkall of Morgan Stanley Investment Management.
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).
Market Vectors, the fifth-largest provider of exchange-traded products in the US and the eighth-largest globally, has added six of its NYSE Arca-traded ETFs to the list of depository receipts based on Market Vectors ETFs currently available to Qualified Investors in Mexico. Deutsche Securities Casa de Bolsa in Mexico will act as local sponsor and filing agent for the depositary receipts.
UBS has expanded its range of exchange-traded funds (ETFs) listed on the London Stock Exchange (LSE) with the introduction of three new funds. The additional funds, which provide exposure to ‘socially responsible’ companies and Brazil, reflect the Swiss firm’s commitment to the London market and come just three months after it made its ETF debut on the exchange.
Market Vectors ETFs, the fifth largest provider of exchange-traded products in the US and the eighth largest provider globally, has signalled its global ambitions by partnering with Australian Index Investments (Aii) to launch Market Vectors Australia. Meanwhile, in a further demonstration of the firm’s international expansion plans, five NYSE Arca-traded Market Vectors ETFs have been added to the growing list of Market Vectors ETFs currently available to Qualified Investors in Mexico.
US-based ETF provider Direxion has announced plans to remove the leverage capacity built in to its suite of dynamic ‘Risk-Control Volatility Response’ ETFs. During times of low, below-target volatility, the exposure to equities will, as of 14 June, be capped at 100%, compared to the current level of 150%. The funds affected are the Direxion S&P 1500 RC Volatility Response Shares (VSPR), the Direxion S&P 500 RC Volatility Response Shares (VSPY) and the Direxion S&P Latin America 40 RC Volatility Response Shares (VLAT).
JP Morgan has been appointed by Pimco, a leading global investment management firm, to offer two of its US-registered ETFs, the Pimco 0-5 Year High Yield Corporate Bond Index ETF (HYS) and the Pimco 25+ Year Zero Coupon US Treasury Index ETF (ZROZ), on the international segment of the Mexican Stock Exchange, Bolsa Mexicana de Valores. The two ETFs are in addition to the existing five PIMCO ETFs previously sponsored by JP Morgan on the same exchange.