Invesco has entered into a definitive agreement to acquire European ETF issuer Source. The transaction will add Source’s $25 billion in assets under management to Invesco’s existing global ETF AUM of approximately $110 billion (as of 31 December 2016). “We’re excited about this opportunity to build on Invesco’s 40 years of factor investing experience and our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world,” said Martin L. Flanagan, president and CEO of Invesco.[continue reading...]
- Invesco to acquire ETF issuer Source
- ETF Securities sees inflection point for global interest rates
- ESG integration improving returns, finds SSGA study
- VanEck Vectors EM local currency bond ETF launched on Xetra
- Deutsche to close five US-listed ETFs
- State Street reaches $2 trillion in ETF assets under administration
- Horizons switches 12 commodity ETFs to Solactive indices
- US-listed ETFs/ETPs gather $44bn during March
- Cheapest ETFs not always the best, say industry experts
- VanEck wide moat ETF passes $1bn AUM
- MarketGrader and CSI partner on smart beta China A-shares indices
- VanEck lowers fees on EM local currency bond ETF
- ETF Securities analyses Trump’s first 100 days as President
- SEC to review Winklevoss bitcoin ETF ruling
By James Butterfill, head of research and investment strategy at ETF Securities
A major inflection point for global interest rates will be reached during 2017. After almost a decade of artificially low rates, central banks might finally be able to pursue a more balanced approach to setting interest rates without fretting over major political and economic instability.
According to a global study conducted by State Street Global Advisors, the asset manager behind the SPDR range of ETFs, 68% of 475 institutions surveyed reported that the integration of an environmental, social and governance strategy had significantly improved returns. ESG-based strategies have underscored one of the most significant trends in ETF product development in recent years.
VanEck has rolled out the VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF on Deutsche Börse’s Xetra and Frankfurt exchanges (Ticker: G2X1). The fund tracks the JP Morgan GBI-EMG Core Index, a reference for the performance of bonds issued in local currencies by 16 emerging market governments.
Deutsche Asset Management has announced that it will be closing and liquidating five of its US-listed ETFs due to insufficient investor demand. The five ETFs, which cover US and international exposures and include funds tracking equities and alternative investments, collectively account for just 0.1% of the $13.6bn invested across Deutsche’s US ETF platform.
State Street, a custodian and fund administrator, has announced that ETF assets under its administration have exceeded $2 trillion. The Boston-headquartered bank services 55% of the global industry’s ETF and ETP assets, according to analysis from ETF industry consultants ETFGI. Its biggest client iShares, the world’s largest ETF issuer, accounts for most of the assets.
Canada-based Horizons ETFs has introduced new indices for twelve of its commodity-tracking exchange-traded funds. Each fund will henceforth track an index designed and calculated by German index provider Solactive. The ETFs’ names, objectives and fee structures will remain unchanged.
The VanEck Vectors Morningstar Wide Moat ETF (NYSE: MOAT) is celebrating five years since its launch along with passing the $1bn assets under management threshold for the first time.
Cloud Atlas Investing, a South Africa-based ETF issuer, has launched the Cloud Atlas Big50 Ex-SA ETF (Johannesburg: AMIB50), providing access to an emerging markets equity investment of 50 companies listed across 15 countries in Africa, excluding South Africa.
Direxion has lifted the temporary suspension on creation units for the Daily Junior Gold Miners Index Bull 3X Shares ETF (NYSE: JNUG) that had been in place since 13 April.
The VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) has become too big for its index, resulting in issuer VanEck and index provider MVIS Indices having to expand the coverage of the ETF’s underlying index to avoid breaching regulatory thresholds.
VanEck has lowered the fees charged for its London- and NYSE-listed VanEck Vectors JP Morgan EM Local Currency Bond ETFs. The total expense ratios have been trimmed from 0.47% to 0.44%.
China Securities Index (CSI) will launch the CSI 5-Year Target Duration CDB Bond Index on 22 May 2017. Designed to provide an investable benchmark for fixed income investors, the index will constitute China Development Bank (CDB) bonds with a term to maturity of 1-10 years, and can serve as the underlying for future investment products including ETFs.
Charles Stanley has launched a new managed portfolio service aimed at clients with less than £150,000. The offering, called the Personal Portfolio Service (PPS), has been developed as a high value, cost-effective alternative to the firm’s bespoke discretionary managed portfolios, according to Christopher Aldous, head of asset management at Charles Stanley.
Online trading firm IG Group has entered the digital wealth management space with the unveiling of its IG Smart Portfolios suite, a range of model investment portfolios constructed solely with iShares ETFs and using asset allocation insights from BlackRock.
Assets invested in exchange-traded funds and exchange-traded products listed in the United States have reached a new record high of $2.798 trillion at the end of Q1 2017, following strong net inflows of $44.4 billion during March, according to ETF industry consultant ETFGI.
Investors should avoid looking exclusively at fund fees when selecting exchange-traded funds, according to a panel of industry experts who addressed an event held by HSBC last week. The speakers explained that while choosing an ETF with a competitive fee structure is undoubtedly important, investors should not discount the tracking precision of the fund.