Derek Fulton, CEO at First Trust Global Portfolios

Latest news

First Trust Eurozone AlphaDEX ETF passes €100m milestone

The First Trust Eurozone AlphaDEX UCITS ETF (FEUZ LN) has grown to over €100 million in AUM three years after launch. The ETF, which provides smart beta exposure to eurozone stocks with growth and value characteristics, has also been awarded a coveted five-star Morningstar Rating based on a risk- and cost-adjusted analysis of fund performance compared to similar eurozone large-cap equity funds. Derek Fulton, CEO at First Trust Global Portfolios, commented: “We believe this demonstrates the true flexibility of the ETF structure to deliver alpha for investors.”

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Latest news

John Hancock unveils multi-factor small cap ETF

John Hancock unveils multi-factor small cap ETF

John Hancock Investments has launched the John Hancock Multifactor Small Cap ETF (JHSC US) on NYSE Arca. Andrew G. Arnott, president and CEO of John Hancock, commented: “Our firm’s momentum in the ETF space has been strong, and we now have $1 billion in ETF assets under management.”

ETF flows chasing fee cuts, reports FactSet

ETF flows chasing fee cuts, reports FactSet

ETF flows have started to chase the fund fee cuts that have become a staple of the industry in recent months, according to new research released by FactSet. The report comes in the wake of numerous announcements in the last few months of fee reductions and new ultra-low-cost funds from major players, including Charles Schwab, State Street Global Advisors, Franklin Templeton, Deutsche Asset Management and Invesco PowerShares.

Global ETF inflows hit €500bn for 2017, reports Amundi

Global ETF inflows hit €500bn for 2017, reports Amundi

Exchange-traded funds recorded €52.6 billion of inflows during October, taking the global total for 2017 to €500bn, according to research by Amundi. In Europe, inflows totalled €6.8bn for October (€80.6bn since January), with €5.8bn flowing into equity products and €1bn into fixed income products.

Edward Rosenberg, senior vice president and head of ETFs for American Century

American Century licenses Precidian’s ActiveShares ETF structure

American Century Investments has entered into an agreement with Precidian Investments to license the firm’s ActiveShares methodology in support of the potential launch of actively-managed, semi-transparent ETFs. The Precidian model allows ETF issuers to deliver actively-managed investment strategies in an ETF vehicle without disclosing holdings on a daily basis. Edward Rosenberg, senior vice president and head of ETFs for American Century, commented: “Our long-term plan is to leverage our established active-management capabilities to bring clients our investment strategies in an ETF format.”

WisdomTree comments on how currency fluctuations impact ETF returns

WisdomTree comments on how currency fluctuations impact ETF returns

By Wisdomtree’s economic research team.

Investors looking to invest in ETFs may notice there are different currencies associated with the instrument. These currencies can have a significant impact on the return of the product, and therefore it’s important to understand how they work and why they fluctuate. This article seeks to offer some clarity to investors and traders around how currencies in ETFs work.

LGIM to buy ETF Securities’ European ETF platform

LGIM to buy ETF Securities’ European ETF platform

Legal & General Investment Management (LGIM) has agreed to buy ETF Securities’ European ETF platform known as Canvas. The news comes two days after WisdomTree announced a deal to buy ETF Securities’ European ETP business. Graham Tuckwell, founder and chairman of ETF Securities, commented, “Combining the ETF expertise and capabilities of Canvas with the scale and reach of LGIM should be transformative for existing and new customers.”

SSGA switches core US equity ETFs to in-house indices

SSGA switches core US equity ETFs to in-house indices

State Street Global Advisors (SSGA) has changed the underlying indices for three of its core US equity ETFs – those providing exposure to the large-cap, small-cap, and total-cap segments of the market – by dropping incumbent index provider FTSE Russell in favour of SSGA in-house indices, calculated by NYSE.

Equities

Jonathan Krane, CEO of KraneShares

KraneShares releases further commentary on China Environment ETF

KraneShares has released further commentary on its recently launched thematic ETF – the KraneShares MSCI China Environment ETF (KGRN US) – which provides access to Chinese companies involved in producing environmentally beneficial products and services. Speaking about the investment case for the ETF, Jonathon Krane, CEO of KraneShares, said, “We believe Chinese companies focused on contributing to a more environmentally sustainable economy may potentially benefit from this focused initiative.”

Direxion launches 3x leveraged pharmaceuticals ETF

Direxion launches 3x leveraged pharmaceuticals ETF

Direxion, the US-based leveraged and inverse ETF specialist, has launched the Direxion Daily Pharmaceutical Bull 3X Shares (PILL US). The ETF seeks to achieve 300% of the daily performance of the Dynamic Pharmaceutical Intellidex Index, an index composed of 30 US pharmaceutical companies identified by NYSE’s Intellidex methodology as having the greatest potential for capital appreciation.

Commodities

WisdomTree to acquire ETF Securities’ European business

WisdomTree to acquire ETF Securities’ European ETP business

WisdomTree has entered into a definitive agreement to buy the European exchange-traded product operations of London-based ETF Securities, comprising 307 ETPs, including commodity, currency, and short & leveraged exposures, with over $17.6 billion of AUM combined. Graham Tuckwell, founder and chairman of ETF Securities, commented: “I believe this combination creates a uniquely positioned firm which will flourish in the years ahead, continuing to deliver huge value for customers and stakeholders.”

Gold demand down 9% as gold ETF flows slow, reports World Gold Council

Gold demand down amid dampened ETF flows, reports World Gold Council

Global gold demand was 915 tonnes during Q3 2017, a fall of 9% compared to the same quarter last year, due in part to gold ETF inflows being substantially lower than in 2016. These were the findings of the World Gold Council’s (WGC) Gold Demand Trends for Q3 2017.

Fixed Income

Vanguard ETF Total Corporate Bond

Vanguard launches US corporate bond ETF of ETFs

Vanguard has launched the Vanguard Total Corporate Bond ETF (VTC US) on Nasdaq, providing exposure to the broad US investment grade corporate bond market through a single fund.

UBS cross-lists six GBP-hedged equity ETFs on SIX

UBS launches three bond ETFs on Xetra

UBS has launched three new fixed income ETFs on Deutsche Börse’s Xetra and Frankfurt exchanges, providing access to emerging market corporate bonds, as well as different maturity segments of the inflation-linked euro government bond universe.

Alternatives / Multi-Asset

VanEck cross-lists ETFs on Deutsche Börse’s Xetra

VanEck cross-lists two ETFs on Xetra

VanEck has cross-listed two ETFs on Xetra – the VanEck Vectors Preferred US Equity UCITS ETF (PRF1 GR) and the VanEck Vectors Natural Resources UCITS ETF (HAP1 GR) – providing exposure to US preferred shares and global natural resources equities respectively.

Fannie Wurtz, managing director at Amundi ETF, indexing & smart beta

Amundi unveils European multi-factor market neutral ETF

Amundi has launched the Amundi European Equity Multi Factor Market Neutral ETF (MKTN FP) on Euronext Paris, providing a means for investors to gain access to the long-term potential of factor risk premia without being exposed to the direction of European equity markets. Fannie Wurtz, managing director at Amundi ETF, commented: “In today’s low yield environment, investors are on the lookout for new ways to generate return and diversify their portfolios. This new ETF shows our ongoing determination to give investors transparent and effective investment solutions.”

ETF and Index News

Look beyond ADV and AUM for ETF liquidity, says Deutsche AM

There’s more to ETF liquidity than AUM and ADV, says Deutsche

A new research note from Deutsche Asset Management argues that the most commonly used measures to assess an ETF’s liquidity may not give investors the full picture.

Quality best performing factor in 2017, reports FTSE and OpenheimerFunds

Quality best-performing factor in 2017, reports FTSE and OpenheimerFunds

Quality has replaced value as the factor driving US large-cap equities in 2017 so far, according to new research from FTSE Russell and OppenheimerFunds.