Investors should avoid looking exclusively at fund fees when selecting exchange-traded funds, according to a panel of industry experts who addressed an event held by HSBC Global Asset Management last week. The speakers explained that while choosing an ETF with a competitive fee structure is undoubtedly important, investors should not discount the tracking precision of the fund as ETFs which do not perform well by this second metric potentially run the risk of consistently lagging their underlying indices by a notable degree.[continue reading...]
- Cheapest ETFs not always the best, say industry experts
- Markets react bullishly to French election first round results
- Record quarterly inflows for globally-listed bond ETFs
- Global ETFs/ETPs gather record $66bn in net new assets during March
- Lyxor rolls out Stoxx Europe 600 ETF with euro hedging
- ETF market maker Virtu to acquire rival KCG
- Direxion lifts creation ban on leveraged junior gold miners ETF
- VanEck launches emerging markets local currency bond ETF in Europe
- VanEck’s junior gold miners ETF to broaden index coverage
- ETF industry gets its own ETF!
- BNP Paribas unveils two Brent crude oil ETCs on Deutsche Börse
- iShares smart beta ETFs launched on Xetra
- UBS reduces fees on US TIPS ETF
- Mackenzie Investments to launch active global high yield ETF
French equity markets reacted bullishly to the first round of Presidential elections with the Lyxor CAC 40 UCITS ETF (Euronext: CAC) gaining 4.2% the day after the results were announced. With polls indicating Macron, the pro-Europe centre-left candidate, has a 20-point lead over leader of the far-right National Front Le Pen in the two-way run-off, France looks set to have a pro-business, moderate president next month.
The global bond ETF industry achieved its best quarter on record with $44.5 billion of inflows during Q1 2017, according to analysis by BlackRock. Stephen Cohen, head of fixed income beta at BlackRock, highlighted some of the global trends seen in the space since the start of the year, including strong appetite for investment grade credit, emerging market debt and Treasury bond funds.
ETFs and ETPs listed globally experienced record net inflows of $66.3 billion during March, according to research from ETF industry consultant ETFGI. The strong net gatherings marked the 38th consecutive month of positive net inflows within the space.
Lyxor has launched a new ETF, offering currency-hedged exposure to the Stoxx Europe 600 Index, on Deutsche Börse’s Xetra and Frankfurt exchanges. The Lyxor Stoxx Europe 600 UCITS ETF Monthly Hedged D-EUR (STXH) tracks the most liquid, large, mid and small-cap companies in European industrialised countries while minimising the effect of fluctuations between index component currencies and the euro.
Market maker Virtu Financial has announced it has entered into a definitive agreement to acquire KCG Holding. The deal, worth around $1.4 billion, has been unanimously approved by the directors of each company.
Direxion has lifted the temporary suspension on creation units for the Daily Junior Gold Miners Index Bull 3X Shares ETF (NYSE: JNUG) that had been in place since 13 April. The suspension and subsequent return to normal trading were linked to recent regulatory issues surrounding the MVIS Global Junior Gold Miners Index, which underlies JNUG, and the VanEck Junior Gold Miners ETF (NYSE: GDXJ), which tracks the same index.
Toroso Investments and white label ETF platform Exchange Traded Concepts, have launched the ETF Industry Exposure & Financial Services ETF (NYSE: TETF), providing access to companies driving growth in the ETF industry. Mike Venuto, CIO of Toroso Investments, commented: “[The ETF] is aimed toward capturing not only the established leaders in each area, but also those firms that might be new to the space but are bringing exciting approaches that could resonate with investors and drive further growth of the industry itself.”
Two new smart beta equity ETFs from iShares, the iShares Edge MSCI World Minimum Volatility UCITS ETF and the iShares Edge MSCI World Multifactor UCITS ETF, have been made available on Deutsche Börse’s Xetra and Frankfurt exchanges. Both ETFs minimise the exchange rate risk between the US dollar and the euro by adopting a monthly currency hedge.
The VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) has become too big for its index, resulting in issuer VanEck and index provider MVIS Indices having to expand the coverage of the ETF’s underlying index to avoid breaching regulatory thresholds.
BNP Paribas has launched two new exchange-traded commodities on Deutsche Börse’s Xetra and Frankfurt exchanges, each providing exposure to the performance of Brent crude oil futures contracts. The ETCs offer a means of gaining relatively low-cost and convenient tactical exposure to crude oil, allowing investors to express their views on the market.
VanEck has launched the VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF (EMLC) on the London Stock Exchange, offering exposure to bonds issued in local currencies by emerging market governments. Uwe Eberle, head of international business development and distribution at VanEck, commented: “Local emerging markets economies have hstorically had higher yields than developed markets and potential for currency appreciation. Additionally, local currency bonds tend to have a lower correlation to the US dollar and thus provide a great way to diversify a portfolio.”
UBS Asset Management has reduced the total expense ratio (TER) on the UBS ETF Barclays TIPS 1-10 UCITS ETF (LON: UBTS) with the new pricing effective from 1 April 2017. The fund offers investors inflation risk mitigation by tracking US Treasury Inflation-Protected Securities (TIPS).
Charles Stanley has launched a new managed portfolio service aimed at clients with less than £150,000. The offering, called the Personal Portfolio Service (PPS), has been developed as a high value, cost-effective alternative to the firm’s bespoke discretionary managed portfolios, according to Christopher Aldous, head of asset management at Charles Stanley.
Online trading firm IG Group has entered the digital wealth management space with the unveiling of its IG Smart Portfolios suite, a range of model investment portfolios constructed solely with iShares ETFs and using asset allocation insights from BlackRock.
BlackRock Inc, the world’s biggest asset manager, on Wednesday reported double-digit profit gains as investors plowed money into lower-cost index funds, but the company’s share price slipped as revenue fell short of analysts’ expectations.
By Shigemasa Katayama, Head of Fixed Income, Japan at Nikko Asset Management.