Latest news

New active ETF structure draws interest from big asset manager names

Precidian’s non-transparent ETF structure draws interest from active managers

A new type of actively managed ETF, which avoids disclosing the holdings of funds’ portfolios, has drawn interest from several major asset managers who have filed applications with the SEC to use the technology. Designed by Precidian Investments, a minority investment of Legg Mason, the ‘ActiveShares’ structure is being sought after by JPMorgan Chase, BlackRock, Capital Research, as well as Legg Mason affiliates ClearBridge and Royce.

Columbia Threadneedle closing active ETF suite

Columbia Threadneedle closes four ETFs

Global asset manager Columbia Threadneedle has announced it is closing four of its ETFs, currently trading on NYSE Arca, including both of its actively managed funds, the Columbia Core Bond ETF (GMTB) and the Columbia Intermediate Municipal Bond ETF (GMMB).

Michael Kovacs, CEO at Harvest Portfolios Group.

Harvest Portfolios changes name of US Buyback Leaders ETF

Harvest Portfolios Group has announced it has changed the name of the US Buyback Leaders ETF (HUL) to the US Equity Plus Income ETF, which took effect on the Toronto Stock Exchange as of 22 June 2017. Michael Kovacs, CEO at Harvest, commented: “To specifically title the fund on the corporate share repurchase programs that are part of the investment criteria was narrow and didn’t give enough credit to the overall stock portfolio choices being made and the overall quality of the portfolio.”

Markets “intensely relaxed”, reports S&P Dow Jones

Markets “intensely relaxed”, reports S&P Dow Jones

A note from S&P Dow Jones Indices (S&P DJI) looking at the levels of volatility indicators such as the VIX Index, aka the ‘fear gauge’, shows that the market is “intensely relaxed” as most volatility measures are down, and several to unusually low levels. Investors wishing to protect their portfolios from a future upturn in the VIX however, may wish to consider one of several ETF-based approaches.

Eng Tech Tan, senior portfolio manager – Asian equity at Nikko Asset Management

Nikko AM: China A-Share inclusion represents new milestone

By Eng Teck Tan, senior portfolio manager – Asian equity at Nikko Asset Management.

Following four years of intense consultation and three failed attempts, MSCI has just added China A-Shares into its international indices. We view this as expected and in some ways, long overdue. Although the initial size of the inclusion is symbolic in nature, the implications are far reaching.

First Trust launches California municipal high income ETF

First Trust launches California municipal high income ETF

First Trust Advisors has launched the First Trust California Municipal High Income ETF (Nasdaq: FCAL), providing income that is exempt from regular federal income taxes and California state income taxes with long-term capital appreciation as a secondary objective.

VictoryShares launches US minimum volatility ETF

VictoryShares launches US minimum volatility ETF

Ohio-based asset manager Victory Capital has launched the VictoryShares US Multi-Factor Minimum Volatility ETF (Nasdaq: VSMV), giving exposure to US equities while tilting the portfolio towards a series of factors that historically have provided superior risk-adjusted returns.

Equities

Nikko AM releases Japan equity outlook

Nikko AM releases Japan equity outlook

By the Nikko Asset Management Japan equity team.

In the Japanese equities market, high dividend strategies have significantly outperformed other strategies. We believe that – in a low growth, low interest rate environment where investors yearn for yield – these strategies will continue to outperform.

First Trust launches actively managed municipal bond ETF

First Trust launches US and international equity ETFs

First Trust has launched a series of new ETFs on NASDAQ. Six of the new funds are smart beta equity strategies and one invests in California municipal debt.

Commodities

UBS launches Bloomberg commodity ETF on London Stock Exchange

UBS launches Bloomberg commodity ETF on LSE

UBS Asset Management has launched the UBS Bloomberg Commodity CMCI UCITS ETF (BCCU) on the London Stock Exchange. The fund offers exposure to the performance of a basket of commodity futures contracts, as represented by the constituent weights of the widely followed Bloomberg Commodity Index, while pursuing an advanced futures rolling methodology.

WisdomTree cross-lists Boost inverse and leveraged oil ETPs on LSE

Rising rates could boost oil ETFs finds S&P DJI

Analysis from S&P Dow Jones Indices ahead of the rate announcement by the Federal Reserve on 14 June assesses the historical impact of rising interest rates on various commodities. 

Fixed Income

Matthew Bartolini, head of SPDR Americas research at SSGA.

SPDR ETFs’ Bartolini encourages investors to look beyond “Agg”

Investors looking for US broad aggregate fixed income exposure may wish to look beyond ETFs tracking the Bloomberg Barclays US Aggregate Bond Index (“Agg”), according to Matthew Bartolini, head of SPDR Americas research at SSGA.

VanEck: Why is China excluded from global bond indices?

VanEck: Why is China excluded from global bond indices?

By Fran Rodilosso, head of fixed income ETF portfolio management at VanEck.

A somewhat incredible fact of global bond markets is that the third largest market in the universe is not included in any major index. The reason for this is that the onshore Chinese bond market was, until several years ago, closed to foreign investors. However, a very deliberate, and sustained liberalisation will lead to changes for onshore Chinese bonds.

Alternatives / Multi-Asset

Edith Southammakosane, multi-asset strategist at ETF Securities

Inverse sterling ETFs in demand following UK election result

Investors reacted to the UK election on 9 June 2017 by increasing their exposure to short GBP ETPs, according to ETF Securities’ weekly ETF/ETP flows analysis.

Solactive and Panthera Solutions launch global market portfolio index

Solactive and Panthera Solutions launch global multi-asset index

Frankfurt-based index provider Solactive and asset allocation consultancy Panthera Solutions have launched the Solactive Panthera World Market Portfolio Index, a multi-asset allocation tracking the performance of 11 asset classes through a combination of ETFs and minor cash positions.

ETF and Index News

MSCI to include China A shares in EM and ACWI indices

MSCI to include China A shares in EM and ACWI indices

MSCI has announced that it will include China A shares in its widely followed MSCI Emerging Markets and MSCI ACWI indices from June 2018. Remy Briand, Managing Director and Chairman of the Index Policy Committee at MSCI, said, “International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion.”

Ossiam adds ESG screening to US minimum variance ETF

Ossiam adds ESG screening to US minimum variance ETF

Smart beta ETF provider Ossiam has announced it is implementing changes to the Ossiam US Minimum Variance ETF to include ESG screening and switch from synthetic to physical replication. As a result, the name of the ETF will change to Ossiam US Minimum Variance ESG ETF (LON: USMV).

FTSE Russell – IFA Video Series

Building portfolios with ETFs

Building portfolios with ETFs

Building portfolios with ETFs, Darren Smith, IFA, 2Plan Wealth Management, Irene Bauer, Chief Investment Officer, Twenty20 Investments, Amanda Robello, Head of Passive Distribution, UK, Ireland & Channel Islands, Deutsche Asset Management and Andrew Keegan, Portfolio Strategist, Multi-Asset Strategies Group, BlackRock.

ETF Trading & Execution

ETF Trading & Execution

ETF Trading & Execution, with Roger Tull, IFA, Positive Solutions, Chris Foxon, Trader, Jane Street, Patrick Ingram, Retirement and Investment Specialist, Parmenion and David Abner, Head of Europe, WisdomTree.