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Financials top MSCI’s sector indices during June

MSCI has released its index performance report for June 2017, breaking down the best and worst performing equity indices over this period by country, factor and sector. The index provider, which is one of the leading providers of equity indices to the exchange-traded fund industry, reports the highest index returns in June were achieved by financials, for sector exposure, while Canada and enhanced value topped the lists of country and factor exposures respectively.

Toronto Stock Exchange 500 ETFs

TSX reaches record 500 ETFs on exchange

Toronto Stock Exchange has announced that it has reached a significant milestone with 500 ETFs listed on its exchange. This number has more than doubled in the past five years, bringing the total market capitalization of listed ETFs to approximately $130 billion as of 30 June 2017.

Record Q2 UK dividends puts spotlight on income ETFs

Record Q2 dividends puts spotlight on UK income ETFs

UK companies distributed an all-time record £33.3 billion in dividends in the second quarter, comfortably beating the previous record of £29.1bn set in Q2 last year, according to research from Capita. The dividend windfall highlights the income-generating potential of UK stocks and is likely to enhance the appeal of UK income ETFs to yield-seeking investors.

BlackRock launches iShares emerging markets ex China ETF

BlackRock launches iShares emerging markets ex China ETF

BlackRock has unveiled the iShares MSCI Emerging Markets ex China ETF (Nasdaq: EMXC), providing broad exposure to large- and mid-cap emerging market equities while excluding stocks from China.

Jeremy Schwartz, director of research at WisdomTree.

WisdomTree: Japan is leading dividend growth in international markets

By Jeremy Schwartz, director of research at WisdomTree.

Once a year, WisdomTree conducts a rebalance of its dividend-weighted stock indices which adjusts positions based on changes in relative valuations. We measure these relative valuations by examining stock price movements versus fundamentals in international markets, primarily utilising a company’s dividend stream in our broad-based index strategies. At this year’s May rebalance, we noticed how Japan is leading the international markets in terms of underlying dividend growth.

ESG Environmental Social Governance

Thomson Reuters updates ESG ratings and indices

Thomson Reuters, in partnership with boutique index provider S-Network Global Indexes, has announced changes to the methodology underlying its corporate responsibility ratings and index suite. The range also been rebranded the Thomson Reuters/S-Network ESG Best Practices Ratings & Indices to better reflect the change.

Woon Khien Chia, senior portfolio manager, Nikko Asset Management

Nikko: China’s deleveraging – when and how will it end?

By Woon Khien Chia, Senior Portfolio Manager, Nikko Asset Management.

China’s deleveraging campaign has been underway for more than three years, starting with the real sector and progressing to the financial sector. While excesses in key industrial sectors have been reduced and the overheated bond and currency markets have also corrected sharply, the country’s aggregate debt ratios are still not declining.

Equities

BlackRock cross-lists EUR hedged smart beta ETF on Deutsche Börse

BlackRock cross-lists iShares EUR-hedged smart beta ETF

BlackRock has cross-listed the iShares Edge S&P 500 Minimum Volatility UCITS ETF EUR Hedged (IS31) on Deutsche Börse. The euro-hedged share class of the fund offers investors hedged exposure to a US large-cap equity portfolio that offers a similar return to the S&P 500 Index with lower overall volatility.

PowerShares unveils S&P 500 Minimum Variance ETF

PowerShares unveils S&P 500 Minimum Variance ETF

Invesco PowerShares has launched the PowerShares S&P 500 Minimum Variance ETF (Bats: SPMV), providing exposure to select constituents from the bellwether S&P 500 Index while producing lower volatility characteristics compared to the broader US large-cap equity market.

Commodities

ETF Securities rolls out new Bloomberg commodity ETFs

ETF Securities rolls out new Bloomberg commodity ETFs

London-based ETF Securities has listed two new broad commodity ETFs on the London Stock Exchange, tracking two indices from the Bloomberg Commodity Index family. The ETFS All Commodities GO UCITS ETF tracks a broad index of front month commodity futures while the ETFS Longer Dated All Commodities Ex-Agriculture and Livestock GO UCITS ETF tracks an index of longer-dated commodity futures on energy and metals.

Three new iShares equity and bond ETFs launched on Xetra

UBS launches Bloomberg commodity ex-agriculture ETF on Xetra

UBS has launched the UBS CMCI Ex-Agriculture SF UCITS hedged to EUR ETF (UIQ1) on Deutsche Börse’s Xetra and Frankfurt exchanges, offering currency hedged exposure to a broad basket of commodity futures contracts, excluding those tracking soft (agricultural) commodities.

Fixed Income

Lyxor rolls out three fixed income ETFs on Borsa Italiana

Lyxor rolls out three fixed income ETFs on Borsa Italiana

Lyxor has launched three new fixed income ETFs on Borsa Italiana, the Lyxor BofAML EUR Short Term High Yield UCITS ETF (HYS), Lyxor BofAML $ Short Term High Yield Euro Hedged UCITS ETF (HYSTH) and the Lyxor $ Float Rate Note EUR Hedged UCITS ETF (FLOTH).

BlackRock slashes fees on iShares MBS ETF

BlackRock slashes fees on iShares MBS ETF

BlackRock has reduced the fees charged on the iShares MBS ETF (NYSE Arca: MBB) from 0.27% to just 0.09%. MBB tracks the Bloomberg Barclays US Mortgage Backed Securities Index, composed of a broad range of investment-grade mortgage-backed pass-through securities issued and/or guaranteed by US government agencies such as Ginnie Mae, Fannie Mae, and Freddie Mac.

Alternatives / Multi-Asset

First Trust to launch actively managed currency ETF on London Stock Exchange

First Trust to launch actively managed currency ETF on LSE

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

Rob Thorpe, head of UK intermediary, BMO Global Asset Management

BMO launches enhanced income covered call ETFs

BMO Global Asset Management has launched a suite of enhanced income ETFs on London Stock Exchange. The three ETFs – tracking UK, eurozone and US equities – provide exposure to stocks with sustainable dividend yields and also utilise a covered call option overlay strategy. Rob Thorpe, head of UK intermediary, BMO Global Asset Management (EMEA), said: “Investors’ search for yield is as strong as ever, as is their focus on ensuring their portfolios are protected on the downside, minimising volatility risk.”

ETF and Index News

Eastern Europe ETFs among best performing emerging markets

Eastern Europe ETFs showing strong 1-year returns

ETFs tracking Eastern Europe equities have delivered strong returns over the past year following robust economic growth in the countries within this bloc. The iShares MSCI Eastern Europe Capped UCITS ETF (LON: IDEE) is up 20.9% over the past year.

Euros Currency Cash Money Net Inflows

European ETF industry adds €8.5bn in net new assets during June

Net new assets (NNA) added to the European ETF industry during June 2017 totalled €8.5 billion with fixed income ETF net inflows (+€4.5bn) outstripping those for equity ETFs (+€4.0bn) for the first time since September 2016. These were the findings according to European ETF provider Lyxor’s monthly flows analysis.

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.