Archive for August 2012

ETF providers take action to improve transparency and safeguards around securities lending, finds Morningstar

Aug 24th, 2012 | By
Strategic beta ETPs underperformed during Covid-19

A comprehensive study into securities lending in physically-replicated exchange-traded funds (ETFs) by Morningstar has revealed that transparency and safeguards have generally improved following investor concern over counterparty and collateral risks. However, there is still room for improvement across the industry.


European Insurance ETFs | Nomura overweight sector, bullish on Aviva, Axa, L&G, Swiss Life and Zurich

Aug 22nd, 2012 | By
LGIM expands Paris-aligned ETF suite into emerging markets

Investors have unfairly penalised the European insurance sector by rating it the same as banks, yet earnings and dividend growth are markedly superior and the risk profile different, according to a report from investment bank Nomura. The investment bank finds the reluctance to own European insurance stocks hard to understand and believes the sector is due for a re-rating. An efficient way for investors to gain exposure to this sector is via a European insurance exchange-traded fund (ETF).


Deutsche Börse’s Xetra surpasses 1,000 ETF listings

Aug 22nd, 2012 | By
VanEck cross-lists ThinkCapital ETFs on Xetra

Five new ETFs from Deutsche Bank’s exchange-traded fund (ETF) platform, db X-trackers, mean that more than 1,000 ETFs are now tradable on Deutsche Börse’s Xetra. The exchange’s comprehensive ETF offering, together with an average monthly trading volume of €12 billion, makes Xetra one of the most important trading venues for ETFs in Europe.


Internet and social media ETFs surprisingly resilient despite slump in Facebook, Groupon, Zynga and Angie’s List

Aug 21st, 2012 | By
FTSE introduces FTSE UK Digital Services Index Series

Contrary to what you might expect, internet and social media exchange-traded funds (ETFs), such the PowerShares Nasdaq Internet Portfolio ETF (PNQI), the First Trust Dow Jones Internet Index ETF (FDN) and the Global X Social Media ETF (SOCL), have held up relatively well this year despite the slump in well-known names such as Facebook, Groupon, Zynga and Angie’s List.


S&P Dow Jones rolls out S&P Europe 350 Low Volatility Index

Aug 21st, 2012 | By
FTSE launches smart beta cyclical and defensive indices

S&P Dow Jones Indices has announced the launch of the S&P Europe 350 Low Volatility Index, which is designed to measure the performance of the least volatile stocks within the S&P Europe 350, an equity index drawn from 17 major European markets, covering approximately 70% of the region’s market capitalisation. The launch of the S&P Europe 350 Low Volatility index comes after interest from exchange-traded fund (ETF) providers and follows similar low volatility launches of indices covering emerging markets and developed countries ex-US.


BrokerTec and MTS to develop Euro Repo Index Series

Aug 21st, 2012 | By
Lyxor rolls out Stoxx Europe 600 ETF with euro hedging

BrokerTec, a global electronic fixed income trading platform owned by broker-dealer ICAP, and MTS, a fixed income trading venue in Europe, which is majority owned by London Stock Exchange Group, have announced plans to launch a daily repo index series for the euro. The indices could offer an alternative to the eurozone’s Eurepo index, compiled by the European Banking Federation, which also sets the Euribor rates that aim to track unsecured lending among the bloc’s banks.


AdvisorShares’ actively managed WCM/BNY Mellon Focused Growth ADR ETF marks two years

Aug 21st, 2012 | By
AdvisorShares’s actively managed WCM/BNY Mellon Focused Growth ADR ETF (AADR) marks two years of outperformance

AdvisorShares, a US-based sponsor of actively managed exchange-traded funds (ETFs), recently celebrated the two-year anniversary of its NYSE-listed international active ETF, the WCM/BNY Mellon Focused Growth ADR ETF (AADR).


Russell terminates passive ETFs to focus on active asset allocation ETFs

Aug 20th, 2012 | By
Russell terminates passive ETFs to focus on active asset allocation ETFs

Following a strategic review, Russell Investments has formally announced the termination and liquidation of the company’s US passively managed family of exchange-traded funds (ETFs). Russell will continue to focus on offering solutions in the actively managed, asset allocated ETF space, including maintaining the Russell Equity ETF (ONEF), as part of its core capability in investment strategy implementation as well as in the passive ETF space through its index licensing business.


US technology ETFs rally as tech sector bellwether Cisco (CSCO) beats expectations

Aug 20th, 2012 | By
US technology ETFs rally as tech sector bellwether Cisco (CSCO) beats expectations

US technology sector exchange-traded funds (ETFs) rallied last week as tech giant and sector bellwether Cisco Systems (CSCO) surged after the company reported positive earnings results and issued a cautiously upbeat financial forecast. The positive results come after S&P Capital IQ last month upgraded the technology sector and gave ‘overweight’ ratings to a number of technology-focused ETFs.


Motif Investing introduces suite of theme-based fixed income ETF baskets

Aug 17th, 2012 | By
US Treasury ETFs trend lower in anticipation of interest rate hikes

Motif Investing, a California-based online broker specialising in theme-based stock and exchange-traded fund (ETF) baskets, has expanded its product offering by introducing 10 new fixed income baskets (or ‘motifs’, as the company calls them) containing bond ETFs tied to certain macro-economic trends.