Latest news

Brexit: Reading between the lines when UK PLC and the UK economy don’t match

Brexit: Reading between the lines when UK PLC and the UK economy don’t match

By Dr. Jan-Carl Plagge, Head of Research – STOXX

Recent political events such as the US and the French election were found to have had a major impact on stock markets. While the impact of such events may often be short-lived, Brexit will remain on the agenda as the country is negotiating its withdrawal from the European Union over the next two years. In this context, investors face a number of challenges when considering such political events in their portfolio management.

Short USD ETF flows jump as hopes of Trump bump policies slump, reports ETF Securities

Short USD ETF flows jump as hopes of Trump bump slump

ETF Securities has reported a rise in flows into its short US dollar ETFs in its latest weekly flows analysis for the week starting 14 August 2017. Morgane Delledonne, fixed income strategist at ETF Securites, identified the unclear commitments of Trump’s administration around pro-growth policies as the driver behind the flows.

Nikko: Japan’s inflation and monetary policy outlook

Indxx launches smart beta Japan dividend index

Indxx, an index provider headquartered in New York, has launched the Indxx Dominant Dividend Japan Index. The smart beta index gives exposure to 50 high dividend paying stocks domiciled in Japan. Indxx has indicated the index is suitable for use as the underlying for ETF creation.

BlackRock cuts fees on iShares ESG and bond ETFs

Investors should favour low-cost passive funds, finds Morningstar

Morningstar has released its latest Active/Passive Barometer, a semi-annual report that measures the performance of US active funds against passive peers, such as ETFs, in respective Morningstar categories. The key takeaway from the report is that the average dollar invested in passive funds typically outperforms the average dollar invested in active funds.

Martin L. Flanagan, president and CEO of Invesco

Invesco completes acquisition of ETF provider Source

Invesco has announced it has completed its acquisition of European ETF provider Source. The transaction sees Invesco add Source’s $26 billion in assets under management to Invesco’s own existing global ETF AUM of approximately $120bn. Martin L. Flanagan, president and CEO of Invesco, commented: “The addition of Source’s specialist expertise and product innovation to Invesco’s strong and diversified range of investment capabilities will further enhance our ability to meet the investment needs and outcomes our clients seek.”

Nizam Hamid , ETF strategist at WisdomTree in Europe.

WisdomTree: India one of the most exciting opportunities in emerging markets

By Nizam Hamid , ETF strategist at WisdomTree in Europe.

The Indian equity market, we believe, represents one of the most exciting opportunities in emerging markets with a dynamic, fast growing economy underpinned by structural reforms. Improving the business climate is a priority of government policy, with a focus on ease of doing business, bridging the skills gap through training, a domestic investment initiative and reducing bureaucracy.

Virtus to close two actively managed multi-asset ETFs

Virtus to close two actively managed multi-asset ETFs

Virtus ETF Solutions has announced it is to close two of its funds, the Tuttle Tactical Management US Core ETF (Nasdaq: TUTT) and the Tuttle Tactical Management Multi-Strategy Income ETF (Nasdaq: TUTI). Both funds are actively managed and provide multi-asset exposure.

Equities

VanEck: A wide moat is only half the battle

VanEck: A wide moat is only half the battle

Torsten Hunke, chief operating officer, VanEck Europe, discusses the investment process behind the Morningstar Wide Moat Focus Index, used to underlie the VanEck Vectors Morningstar US Wide Moat UCITS ETF (LON: MOAT). Hunke explains that identifying stocks with wide economic moats (sustainable competitive advantages) is only half the battle; ascertaining which are trading below their fair values is equally as important.

Brian Wesbury, chief economist at First Trust Advisors.

First Trust: US bull market still has long way to go

By Brian Wesbury, chief economist at First Trust Advisors.

For many years now a relatively large contingent of analysts, investors and journalists has been convinced the stock market was in a bubble because the “Shiller PE” ratio was just too high. Back in August 2013, in our Monday Morning Outlook, we made our case that the Shiller model was too pessimistic. Now that looks like a pretty good call.

Commodities

Investors flock to gold amid geopolitical tensions, reports ETF Securities

Investors flock to gold amid geopolitical tensions, reports ETF Securities

London-based ETF Securities has reported that its gold ETPs attracted $63.2 million of net new assets in the week ending Friday 11 August 2017. The strong asset gathering, reportedly in response to demand for portfolio protection amid rising geopolitical tensions, marked the third consecutive week of positive net inflows for the yellow metal.

Investors lured to gold’s defensive traits, reports ETF Securities

7IM gold exposure hits record high

Seven Investment Management (7IM) has reported that its gold exposure is currently at its highest ever level due to the firm’s “risk off” positioning as a result of perceived elevated risks in the stock market. 7IM’s gold holdings (15.4 tonnes) is now greater than a number of countries including Ireland, United Arab Emirates and the Czech Republic. The discretionary fund manager uses physically backed exchange-traded commodities (ETCs) from Source and iShares to obtain gold exposure in its range of funds and managed portfolios.

Fixed Income

Deutsche Asset Management is to cross-list the db X-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS (EUR Hedged) ETF (XQUE) on the SIX Swiss Exchange.

Deutsche to cross-list emerging markets quality bond ETF on SIX

Deutsche Asset Management is to cross-list the db X-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS (EUR Hedged) ETF (XQUE) on the SIX Swiss Exchange. The fund provides currency-hedged exposure to US dollar (USD) currency denominated tradable debt (bonds) issued by governments or central banks in emerging market countries.

Sylvia Jablonski, managing director at Direxion

Direxion launches triple leveraged emerging market bonds ETF

Inverse and leveraged ETF provider Direxion has launched the Direxion Daily Emerging Markets Bond Bull 3X Shares (NYSE Arca: EMBU), providing triple-leveraged exposure to the performance of US dollar-denominated bonds issued by 55 emerging market countries. Sylvia Jablonski, managing director at Direxion, commented: “Emerging market bonds can offer the opportunity to gain higher yield and return, which has been the case recently.”

Alternatives / Multi-Asset

Currency Trading

First Trust launches first active FX ETF in Europe

London-based ETF issuer First Trust Global Portfolios has launched the First Trust FactorFX UCITS ETF (LON: FTFX), Europe’s first actively managed exchange-traded fund investing in foreign exchange markets. The ETF will primarily seek to earn alpha through the implementation of multiple carry trades, a strategy which seeks to capitalise on the interest rate differential between various currencies.

SIX Switzerland Swiss Real Estate Property

SIX launches SXI Swiss Real Estate All Shares Index

SIX Swiss Exchange has introduced the SXI Real Estate All Shares Index, tracking the performance of companies operating within the real estate sector with a primary listing on SIX. The index is an extension of the existing SXI Real Estate Index family and is suitable to underlie future investment products including ETFs.

ETF and Index News

Launching a successful ETF

Launching a successful ETF

By John Jacobs and Richard Keary, ETF BILD Project

The industry has done a commendable job of explaining how to launch an ETF; we want to delve into the important activities that are a must for creating a successful ETF after it has been launched.

Europe-listed ETFs gather €7.8bn in July, finds Morningstar

Europe-listed ETFs gather €7.8bn in July, finds Morningstar

Europe-listed ETFs saw net inflows of €7.8 billion in July 2017, bringing the total for 2017 to €65bn, according to data from Morningstar. While flows into Europe-listed equity ETFs posted a solid reading of €4.9bn, fixed income ETFs saw tepid demand during the month, recording flows of just €1.6bn, the second lowest monthly flows this year.

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.