Latest news

Bond ETF flows hit by hawkish central banks, reports Lyxor

Flows into Europe-listed bond ETFs hit by hawkish central banks, reports Lyxor

European-listed ETF market flows remained steady in July with net new assets (NNA) over the month totalling €8.7 billion, according to monthly flows analysis from Lyxor. However, fixed income flows decreased to €2.3bn, close to the lowest monthly level of the year.

Boost ETP co-founders announce launch of new white-label ETF platform

Industry veterans launch European white-label ETF platform

European ETF industry veterans Hector McNeil and Nik Bienkowksi have announced the launch of HANetf, Europe’s first independent “white label” UCITS ETF platform. The platform, which is not linked to any existing issuer, will provide third-party asset managers from around the world with the infrastructure to build and launch ETFs into Europe without having to establish their own full-service business. The pair aim to disrupt the market by lowering the barriers to entry for prospective new ETF issuers.

Vanguard changes indices underlying three bond ETFs

Vanguard changes indices underlying three bond ETFs

Vanguard has announced a change in indices underlying three of its government bond ETFs. The changes, which are due to take place during the fourth quarter of 2017, will see the ETFs’ underlying indices transition to pure Treasury indices. The move is expected to provide more targeted exposure to segments of the US government bond market and may potentially reduce bid-ask spreads.

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.

Ryan Issakainen, senior vice president, exchange-traded fund strategist at First Trust Advisors.

First Trust becomes largest provider of actively managed ETFs in US

First Trust has become the largest provider of US-listed actively managed ETFs, based on AUM and number of funds offered –
according to data from Morningstar, as of the end of July, First Trust had $9.9bn invested across 29 US-listed actively managed ETFs. Ryan Issakainen, ETF strategist at First Trust, said: “First Trust has been highly selective in developing a diversified line-up of actively managed ETFs, focusing on categories where we believe active management offers competitive advantages over passive benchmark indices.”

First robotics and automation ETF hits $1bn in assets

First robotics and automation ETF hits $1bn in assets

The ROBO Global Robotics & Automation Index ETF (Nasdaq: ROBO) recently surpassed $1 billion in assets under management (AUM). Launched in October 2013, the ETF was the first to offer thematic equity exposure to companies involved in the production and use of robotics, automation and related technologies.

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 P-E” 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.

Equities

Deutsche launches two strategic beta min vol ETFs

Transamerica launches new suite of strategic beta ETFs

Transamerica Asset Management has launched four new strategic beta ETFs designed to provide core equity strategies with an embedded risk management feature. Called the Deltashares By Transamerica suite, the new ETFs are the first to track the S&P Manged Risk 2.0 Index Series, which offers exposure to a given segment of the equity market while seeking to control volatility.

SPDR ETFs: Three reasons why eurozone stocks have room to run

SPDR ETFs: Three reasons why eurozone stocks have room to run

By Matthew Bartolini, head of SPDR Americas research, State Street Global Advisors.

After a strong rally, eurozone stocks have lost momentum since May, hurt by a strengthening euro. In the past two months, the EURO Stoxx 50 Index has registered negative return in local currency and underperformed the S&P 500 Index by 5%, while flows into European equity ETFs have slowed to their lowest level since March.

Commodities

ETF Securities cross-lists two broad commodity ETFs on Deutsche Börse

ETF Securities cross-lists two broad commodity ETFs on Deutsche Börse

London-based ETF Securities has cross-listed two broad commodity ETFs on Deutsche Börse, 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.

Oil investors take profits on price rise reports ETF Securities

Oil investors take profits on price rise, reports ETF Securities

ETF Securities has reported that the 6% oil price rise seen during the week beginning 24 July 2017 has led to outflows of $53 million as ETF/ETP investors took profits. The recent US inventory drawdown was much greater than expected, providing the catalyst for the recent price appreciation.

Fixed Income

Deutsche launches smart beta emerging markets bond ETF on Deutsche Börse

Deutsche introduces currency hedging for smart beta EM bond ETF

Deutsche Asset Management has unveiled the db x-trackers iBoxx USD Emerging Sovereigns Quality Weighted EUR-hedged UCITS ETF (XQUE) on Deutsche Börse’s Xetra and Frankfurt exchanges. The fund provides smart beta exposure to high quality emerging market government bonds while mitigating currency risk between the US dollar-denominated bonds and the ETF’s trading currency – the euro.

BlackRock reports near-record flows into bond ETFs during Q2 2017

BlackRock reports near-record flows into bond ETFs during Q2 2017

The global bond ETF industry attracted $43.3 billion of net inflows in Q2 2017, just short of the industry record of $44.5bn set in Q1 2017, according to BlackRock’s Q2 Global ETF industry report. Stephen Cohen, head of fixed income beta at BlackRock, writes that the firm’s own ETF arm – iShares – captured $21.0bn (or 48.5%) of these net new assets with flows “driven by investor appetite for investment grade credit, emerging market debt and government bond funds.”

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

WisdomTree cross-lists three UCITS ETFs into Mexico

WisdomTree cross-lists three UCITS ETFs into Mexico

WisdomTree has cross-listed three UCITS-compliant ETFs into Mexico. The new listings, which include two broad equity funds and one broad commodity fund, bring the total number of WisdomTree ETFs listed on Bolsa Mexicana de Valores (BMV) to 42, made up of 32 US-listed ETFs and ten UCITS ETFs.

Blue Tractor files amended SEC application for ‘shielded alpha’ ETF structure

Blue Tractor files amended SEC application for ‘shielded alpha’ ETFs

Blue Tractor Group has filed a third amended application with the US SEC for a new fund structure called a ‘Shielded Alpha ETF’. The proposed structure is an extension of a traditional actively managed ETF that does not require full portfolio disclosure on a daily basis. Consequently, Shielded Alpha ETFs allow active managers to fully obscure their proprietary alpha generation strategy from the market.

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.