Latest news

Income ETFs in focus as global dividends hit record highs

Income ETFs in focus as global dividends hit record highs

The world’s largest 1,200 companies distributed a third-quarter record of $328.1 billion (£248bn) in dividends, according to research from Janus Henderson, putting a new full-year record for 2017 comfortably within reach. The dividend windfall is likely to enhance the appeal of equity income ETFs to yield-seeking investors.

Stretched equity valuations triggering gold inflows, says ETF Securities

Stretched equity valuations triggering gold ETF inflows

Stretched equity valuations have prompted the fourth consecutive week of inflows into gold ETFs, according to the latest ETF Securities’ fund flows report – a weekly analysis of capital flows across the firm’s entire ETF range.

Wei Li, head of iShares EMEA investment strategy at BlackRock

BlackRock highlights six portfolio ideas for global growth

Wei Li, head of iShares EMEA investment strategy at giant ETF issuer BlackRock, has commented on six potential ideas for investors’ portfolio allocations in the face of increasing global economic expansion.

The rise of the ETF Managed Portfolio

US equity growth ETF switches from active to passive

In a move that provides a curious imitation of trends seen in the wider asset management industry, the Innovator IBD 50 Fund (FFTY US) has switched from being actively managed to passively replicating an index. The ETF, launched in April 2015, will now track the IDB 50 Index which had previously been used as the ETF’s benchmark.

Invesco cross-lists PowerShares Preferred Shares ETF on SIX

Invesco cross-lists PowerShares Preferred Shares ETF on SIX

Invesco has cross-listed the PowerShares Preferred Shares UCITS ETF (PRFD SW) on SIX Swiss Exchange. PRFD provides exposure to fixed rate US dollar denominated preferred securities issued in the US domestic market.

Connor O'Brien, CEO of O'Shares

O’Shares to close two currency-hedged quality dividend ETFs

Boston-based ETF issuer O’Shares Investments has announced the closing of two ETFs which provide currency-hedged exposure to high quality dividend-paying equities listed in Europe and Asia Pacific. Connor O’Brien, CEO of O’Shares, commented: “The decision has been made to close the funds so we can direct resources to developing new O’Shares ETFs to meet investors’ demand for different strategies.”

Hang Seng launches three Hong Kong Stock Connect indices

Hang Seng launches three ‘southbound’ Hong Kong Stock Connect indices

Hang Seng Indexes has launched three indices tracking Hong Kong- and China-based equities listed on the Hong Kong Stock Exchange that are accessible through the southbound trading link of the Stock Connect Hong Kong (SCHK) schemes.

Equities

Derek Fulton, CEO at First Trust Global Portfolios

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.”

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.”

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

Paul Syms, head of fixed income product management at Invesco PowerShares

Invesco launches three PowerShares fixed income ETFs in Europe

Invesco has launched three PowerShares-branded fixed income ETFs in Europe. The funds track Bloomberg Barclays indices and provide exposure to bonds from USD-denominated corporates, EUR-denominated corporates, and emerging market sovereigns. Paul Syms, head of fixed income product management at Invesco PowerShares, commented: “There is strong demand from investors for low-cost, simple, transparent and well-structured fixed income solutions. Invesco PowerShares is determined to be the leading provider of such ETFs in Europe.”

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.

Alternatives / Multi-Asset

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.

ProShares Inverse Retailers ETF

ProShares unveils inverse ETFs targeting bricks-and-mortar retailers

ProShares has launched the ProShares Decline of the Retail Store ETF (EMTY) on NYSE Arca, the first ETF specifically designed to benefit from the decline of US-listed bricks-and-mortar retail firms. Investors looking for an alternative play on this theme – simultaneously capturing the increasing popularity of online retailing – may wish to consider the ProShares Long Online/Short Stores ETF (CLIX US) which also launched today.

ETF and Index News

Sector ETFs set to be impacted by changes to GICS

MSCI and S&P Dow Jones Indices have announced changes to the Global Industry Classification Standard (GICS) that will see the telecommunication services sector being broadened and renamed as communication services. The changes are set to affect ETFs that provide exposure to the telecoms, technology and consumer discretionary sectors, and will take effect in September 2018.

Solactive launches bricks-and-mortar retail index

Solactive launches bricks-and-mortar retail index

Solactive has launched the Solactive-ProShares Bricks and Mortar Retail Store Index, which tracks US retail companies that rely principally on in-store sales. The recently-launched ProShares Decline of the Retail Store ETF (EMTY US) provides inverse exposure to the index.