Archive for February 2012

China ETFs: Mark Mobius sees reasons to be optimistic on China

Feb 12th, 2012 | By
T3 Index unveils 'E8' emerging markets foreign exchange benchmark

Despite some slowdown in 2011, China remains one of the fastest-growing major economies in the world. Legendary investor Dr Mark Mobius sees numerous reasons to be positive. “With a population base of 1.3 billion people, consumerism has flourished in China. Rising per capita income and a strong demand for consumer goods and services mean the earnings growth outlook for stocks linked to this theme is positive.” Mobius also believes that the renminbi could become a global reserve currency by 2020.


Real Estate ETFs: Property stocks well-placed to outperform

Feb 10th, 2012 | By
UK REIT and Financial ETFs still at risk post Brexit?

Global real estate stocks are emerging from recession leaner, better financed, and well-placed to take advantage of the expected pick-up in demand for commercial property space when economic recovery gathers pace, according to a recent report from AXA Framlington. Plus, in a world where yield is hard to find, global real estate equities currently offer an attractive dividend yield in the region of 3%. Moreover, as fundamentals improve, average dividends should rise further.


ProShares rolls out 10-year long/short breakeven inflation ETFs

Feb 10th, 2012 | By
ProShares rolls out 10-year long/short breakeven inflation ETFs

ProShares, a US-based ETF provider best known for its leveraged and inverse funds, has launched the ProShares UltraPro 10 Year TIPS/TSY Spread ETF (UINF) and the ProShares UltraPro Short 10 Year TIPS/TSY Spread ETF (SINF), the first ETFs linked to 10-year breakeven inflation. Breakeven inflation is a widely followed measure of inflation expectations and aims to isolate the market’s expectation of inflation implied by the difference in yields between TIPS and Treasury bonds.


Global X Funds launches all-seasons multi-asset ETF

Feb 9th, 2012 | By
Global X Funds launches all-seasons multi-asset ETF

Global X Funds, a New York-based ETF provider, has launched the Global X Permanent ETF (PERM), a diversified multi-asset ETF designed to perform regardless of the prevailing economic environment. As an all-seasons ETF, intended to be held permanently, the fund is based on the premise that the average investor may not be properly diversified, which, in turn, may lead to underperformance, particularly when the market environment changes rapidly.


Fixed Income ETFs hit record levels

Feb 8th, 2012 | By
Cathay launches leveraged DJIA ETF in Taiwan

Global asset flows for exchange-traded products hit record levels during the month of January, newly-released data show. A breakdown of the data reveals that fixed income ETPs, in particular, had an especially strong month. According to the latest BlackRock Investment Institute “ETP Landscape” report, the global ETP industry had its best month of January ever with $34.1 billion of net inflows, representing a 144% increase in inflows over the previous record set in January 2011 and up 116% from December 2011.


VelocityShares launches suite of leveraged and inverse commodities ETNs

Feb 8th, 2012 | By
VelocityShares launches suite of leveraged and inverse commodities ETNs

Connecticut-based VelocityShares has launched a suite of eight commodities-related Exchange Traded Notes (ETNs) on the NYSE. The VelocityShares Crude Oil, Brent Crude, and Natural Gas ETNs represent the first suite of 3x leveraged long and 3x inverse energy-related ETNs to be listed in the US, while the VelocityShares Copper ETNs represent the first 2x leveraged long and inverse copper ETNs to be listed in the US.


ETF inflows surge as assets under management reach all-time high

Feb 7th, 2012 | By
Simplify launches options-enhanced Nasdaq 100 ETFs

US ETFs collected assets of $28.5 billion in January to mark the industry’s second-largest monthly inflow in three years and the eighth consecutive month of inflows, according to data released by Morningstar. Every asset class but alternatives had inflows, and the outflows for alternative ETFs were minor. Total assets under management for US ETFs reached an all-time high of $1.15 trillion. Invesco’s flagship ETF, the PowerShares QQQ, gathered almost $4 billion as investors backed the tech-heavy Nasdaq.


Asset Allocation: Barings multi-asset team ‘risk on’ for first time in over a year

Feb 7th, 2012 | By
ETF Strategy: Barings multi-asset team ‘risk on’ for first time in over a year

Barings’ Global Multi-Asset Group has been adding to risk assets across the board, upgrading equities and downgrading government bonds and cash. Within equities, the team has upgraded cyclical areas such as emerging markets, as well as Energy, Financials and Industrials. In the developed world, the team sees the US market as looking cheapest, with Europe appearing less attractive. In bonds, the team has upgraded emerging market local debt.


Van Eck’s municipal bond ETFs surpass $1bn in AUM

Feb 7th, 2012 | By
First Trust unveils actively managed municipal high income ETF

Investors’ search for yield has helped New York-based Van Eck Global’s range of municipal bond ETFs pass the $1 billion mark in combined assets under management. “Municipal bonds have emerged into the spotlight after long being one of the quieter corners of the investment landscape, and investors and advisers are seeing their current attractiveness as well as the potential benefits offered by investing through ETFs,” said Jim Colby, senior municipal strategist at Van Eck Global.


JP Morgan, Source launch London-listed volatility strategy ETF

Feb 6th, 2012 | By
JP Morgan launches London-listed volatility strategy ETF

JP Morgan and Source have further consolidated their partnership in the European ETF marketplace with the launch of the JP Morgan Macro Hedge US TR Source ETF. The ETF aims to provide cost-effective, long-term exposure to volatility via a systematic VIX futures strategy developed by JP Morgan. The fund tackles the crucial contango problem with an innovative two-pronged strategy: it takes both long and short exposure to futures, switching from long to long/short depending on the shape of the futures curve.