Latest news

Lyxor launches multi-factor long/short equity ETF

Lyxor launches multi-factor long/short equity ETF

Lyxor has launched the Lyxor Scientific Beta Developed Long/Short UCITS ETF on Euronext Paris, London Stock Exchange, and Borsa Italiana. The smart beta fund provides exposure to an equity market neutral index that takes a long position in a number of portfolios designed to maximise exposure to different factors while shorting the broad cap-weighted market.

Dorsey Wright determines ‘relative strength’ by comparing the price performance, or momentum, between asset classes.

First Trust unveils multi-asset addition to Dorsey Wright ETF suite

First Trust Advisors has launched the First Trust Dorsey Wright DALI 1 ETF (DALI US) on Nasdaq Exchange. The fund dynamically adjusts its exposure across four broad asset classes based on price momentum signals analysed by relative strength specialist Nasdaq Dorsey Wright.

ETFs gaining popularity with Asian institutional investors, finds Greenwich Associates

Versatility drives greater ETF use among European institutions

ETFs deliver the versatility that European institutional investors want in the current fast-changing global market environment, according to a recent study by Greenwich Associates. “After multiple years of regular use, European institutions have found ETFs to be simple, versatile and cost-effective tools, and they are ramping up their investments at a rapid clip,” says Greenwich Associates managing director, Andrew McCollum.

Rafi Aviav, WisdomTree Head of Product Development in Europe

WisdomTree launches world’s first CoCo bond ETF

WisdomTree has launched the WisdomTree AT1 CoCo Bond UCITS ETF (CCBO LN) on London Stock Exchange, providing exposure to contingent convertible (CoCo) bonds issued by financial institutions from developed European countries. Rafi Aviav, WisdomTree head of product development in Europe, said, “This is a major development for investors globally who can now, for the first time, gain diversified exposure in a UCITS structure to the AT1 CoCo market with the ease and efficiency of trading an ETF.”

Alex Ashby, director of product development at Global X

Global X launches AI and big data ETF

Global X Funds has launched the Global X Future Analytics Tech ETF (AIQ US) on Nasdaq Exchange. The fund provides access to companies that are generating vast amounts of data and developing proprietary artificial intelligence (AI) systems to derive actionable insights from that data. Alex Ashby, director of product development at Global X, said: “Given AI’s potential to impact a variety of sectors, we believe it is poised to become one of the most significant technological innovations of the modern era.”

Four ETF trends show cautious optimism for 2018

Four ETF trends show cautious optimism for 2018

By Martin Small, head of US iShares at BlackRock.

Recent flows suggest that investors are priming for a rougher but hopeful future. Here’s where the money went and why.

Equities

Vanguard makes the case for a passive approach to China

Vanguard makes case for passive approach to China

While the volatility and inefficiencies of the Chinese equity market – inherent in most emerging market countries – lends itself to opportunities for active investment management, ETF provider Vanguard highlights that picking winners can be difficult over the long term. Instead, the asset management giant proposes that a low-cost and highly diversified indexing strategy is a good approach in any market, including China.

Passive sustainable funds continue to gain traction, says Morningstar

Passive sustainable funds continue to gain traction, says Morningstar

The proportion of passive funds within the global sustainable funds universe has increased from less than 6% five years ago to approximately 12% today, according to a report by investment research house Morningstar. The study notes this rise has been driven by the general trend towards passive investing and the development of more sophisticated indices on the back of better ESG data.

Fixed Income

DWS launches Xtrackers emerging markets bond ETF on Xetra

DWS launches Xtrackers emerging markets bond ETF on Xetra

DWS has launched the Xtrackers II USD Emerging Markets Bond UCITS ETF (XUEM GY) on Xetra, providing exposure to investment grade and high yield emerging market bonds denominated in US dollars. The fund’s reference index is composed of bonds issued by governments, regional governments, or government-related entities.

Source and Goldman Sachs expand range of smart beta ETFs

New provider Tabula to launch fixed income ETFs in Europe

Tabula Investment Management is preparing to make its debut with the launch of a range of fixed income ETFs in Europe. The firm’s first ETFs will provide exposure to credit default swap (CDS) indices from IHS Markit. Michael John (‘MJ’) Lytle, CEO of Tabula, commented, “Passive strategies account for only 5% of fixed income fund assets, compared to 30% for equities. We expect this gap to close, but how quickly will depend on how compelling the available funds are.” 

Alternatives / Multi-Asset

Retail Real Estate ETFs

Pacer introduces suite of real estate sector ETFs

Pacer ETFs has launched a suite of three new funds on NYSE Arca that provide access to real estate investment trusts (REITs) focusing on different sectors of the US property market. The ETFs target traditional bricks-and-mortar retail REITs as well as REITs standing to gain from the ongoing e-commerce revolution.

Lyxor confirms launch of physically-replicated ETFs

Societe Generale launches 74 inverse and leveraged ETPs on LSE

Societe Generale has launched a series of 74 inverse and leveraged ETPs on London Stock Exchange. The product suite provides investors with leveraged daily long and short exposures to commodities, currency pairs and mainstream equity indices.

Commodities

Gold ETFs increased AUM 3% ($3.1bn) in April.

Gold ETFs enjoy strongest inflows for over a year

Global gold-backed ETFs/ETPs (hereafter ETFs) enjoyed their strongest month of net inflows during April since early 2017, according to data from the World Gold Council. Despite a 1% drop in the gold price over the month, flows into gold ETFs remained steady throughout April leading to an increase in assets under management of 3% ($3.1bn).

Royal Canadian Mint offers alternative to gold ETCs

World Gold Council to launch new low-fee gold ETF

The World Gold Council (WGC) is anticipated to launch a new gold-backed ETF, reports Reuters. The WGC owns the world’s largest gold-backed ETF—the SPDR Gold Shares ETF (GLD US), which is marketed by ETF giant SSGA— but is creating a second gold offering with lower management fees.

ETF and Index News

Global ETP flows in April fueled by fixed income

Commenting on flows in the EMEA region, Wei Li, head of iShares EMEA investment strategy at BlackRock, said, “Fixed income flows returned to positive territory in April as $1.5bn flowed into EMEA-listed ETPs. Emerging market debt and investment grade ETPs continued to be unpopular, with outflows totalling $475m.”

Adriano Pace, managing director for equity derivatives at Tradeweb.

Tradeweb reports solid but weaker trade volumes in April

Trading activity on Tradeweb’s European-listed ETF marketplace remained solid in April with total traded volume at €16.7 billion. Europe Equities emerged as the month’s most heavily-traded ETF category. Adriano Pace, managing director for equity derivatives at Tradeweb, said: “April saw the return of the equity ETF buyer, reversing the sell-off that took hold of the market in the two preceding months.”