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).
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As more and more investors lose faith in active managers, they are increasingly turning to a compelling alternative – smart beta. Combining elements of both active and passive management, smart beta strategies have enjoyed significant inflows in the past few years and continue to see growing interest from investors. The latest evidence for this comes from FTSE, a global index provider, which has announced that assets under management in ETFs linked to the fundamentally weighted FTSE RAFI index series have topped $5 billion.
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.
For providers of exchange-traded products (ETPs), 2013 is fast becoming a vintage year. Year-to-date net inflows reached a record $107 billion through the end of May 2013, a whopping 31% higher than the $82 billion seen during the same period last year, according to data from ETFGI. When added to the existing ETP pile, total assets under management in the industry now stand at an all-time high of $2.14 trillion across some 4,849 products from more than 200 providers.
WisdomTree has expanded its product line-up with the launch of the WisdomTree US Dividend Growth ETF (DGRW). The fund has been listed on the Nasdaq Stock Market and provides exposure to dividend-paying stocks with growth characteristics. In keeping with the firm’s fundamental indexing approach, the fund will track the proprietary WisdomTree US Dividend Growth Index, a dividend-weighted index which blends characteristics of both active and passive investment styles.
The Bank of Japan (BoJ) has approved a massive multi-asset purchase programme, including the purchase of billions of dollars worth of exchange-traded funds (ETFs), designed to stimulate the Japanese economy. The BoJ will purchase Topix and Nikkei 225 ETFs so that the amount outstanding will increase at an annual pace of 1 trillion yen – approximately $10.5 billion per year.
The global exchange-traded products (ETP) industry has recorded its best first quarter on record, amassing inflows of $70.1 billion, according to the latest ETP Landscape report from BlackRock. Russ Koesterich, Global Chief Investment Strategist at BlackRock, said: “Rather than the much-discussed ‘great rotation’ from bonds into equities, the first quarter showed investors moving cash from the sidelines into equities, and preparing for a rise in interest rates by rotating within fixed income into short-term and floating-rate ETFs.”
Vanguard has revealed plans to introduce the Vanguard Total International Bond Index ETF, a new fixed income exchange-traded fund (ETF) offering exposure to international bond markets. The ETF is scheduled to make its debut before the end of the second quarter. Bill McNabb, Vanguard CEO, said: “International bonds can serve as an important diversifier, especially for US investors who currently have modest exposure to the asset class.”
WisdomTree has launched a new actively managed ETF on the Nasdaq market. Sub-advised by Western Asset, the WisdomTree Global Corporate Bond ETF (GLCB) invests in corporate fixed income securities from around the world. The ETF maintains at least 55% in investment grade assets, with the ability to also invest in US and international high yield as well as emerging market corporate debt. With an intermediate duration target and a bias towards high-quality bonds, the fund is positioned as a core fixed income holding.
WisdomTree has revealed that the WisdomTree Japan Hedged Equity ETF (DXJ) has surpassed $2 billion in assets, more than doubling its assets in under a month. Understandably popular with investors, the fund is designed to offer broad exposure to the Japanese equity market – with a tilt toward the exporters, who may stand to benefit from a depreciating yen – while hedging fluctuations in the value of yen relative to the dollar.