Archive for August 2012
Aug 7th, 2012 |
By Simon Smith, CFA
Two relative newcomers to the US ETF game, Russell Investments and FocusShares, have signalled their retreat, reflecting the intense competitive pressures within the US market as ETF giants iShares, SPDR and Vanguard monopolise inflows. Meanwhile, elsewhere, US-based Direxion, Europe-based Lyxor and Canada-based Horizons have announced the pending closure or delisting (of secondary listings) of some of their less popular funds.
Posted in ETF and Index News |
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Tags: Direxion, ETF and Index News, ETF Industry News, Europe, FocusShares, Horizons, Leveraged and Inverse ETFs, Lyxor, Russell, Russell Indexes, United States and Canada
Aug 6th, 2012 |
By Simon Smith, CFA
Problems at market-maker Knight Capital (NYSE:KCG) appear to have had a negative impact on spreads for thinly traded ETFs. For less liquid ETFs, typically those ETFs that trade fewer than 50,000 shares per day, market-makers like Knight ensure that trades get executed at prices within an acceptable bid/ask range. However, the average spread for the 549 less liquid ETFs for which Knight acts as lead market-maker widened threefold in the aftermath of the error, according to IndexUniverse.
Posted in ETF and Index News |
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Tags: ETF and Index News, ETF Industry News, United States and Canada
Aug 6th, 2012 |
By Simon Smith, CFA
ETF Securities, one of Europe’s leading providers of Exchange Traded Products (ETPs), has revealed that net inflows into its physically-backed gold products have surpassed the $1 billion mark for the year, as investors look to hedge against continued financial, economic and political turmoil. ETF Securities listed the world’s first exchange-traded gold product in 2003. Today, more than $17 billion of the firm’s assets reside in products that track gold.
Posted in Commodities |
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Tags: DWS Xtrackers, ETF Industry News, ETF Securities, ETNs and ETCs, Europe, Global, Gold and Precious Metals, iShares, Source
Aug 6th, 2012 |
By Simon Smith, CFA
Total inflows into the European ETF market in the second quarter (Q2) of 2012 were just $139 million as the ongoing eurozone crisis weighed heavily on investor sentiment in the region. Although European ETFs fared relatively better in Q2 than other investment products such as mutual funds and hedge funds, they were outperformed by the ETF market in the US, which appears on track for its best ever year.
Posted in ETF and Index News |
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Tags: Credit Suisse, ETF and Index News, ETF Industry News, Europe
Aug 2nd, 2012 |
By Simon Smith, CFA
With interest rates at historic lows and ongoing credit concerns and market volatility driving ever increasing cash levels, investors would be wise to rethink their cash allocations. In this ‘new normal’, investors should take a more sophisticated approach to the management of their cash portfolios and consider the creation of ‘liquidity tiers’ to better match asset duration to cash liabilities. As part of this approach, short-maturity ETFs can enhance portfolio returns while preserving capital and maintaining daily liquidity.
Posted in Fixed Income |
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Tags: Europe, Fixed Income, Guggenheim, High Income, Pimco, Source, Themes and Strategy, United Kingdom, United States and Canada
Aug 1st, 2012 |
By Simon Smith, CFA
iShares has announced the launch of a GBP currency-hedged ETF that provides access to the Japanese equity market whilst reducing currency risk for sterling-referenced investors. Listed on the London Stock Exchange, the iShares MSCI Japan Monthly GBP Hedged ETF (IJPH) offers exposure to over 300 of the largest companies in Japan, representing approximately 85% of the entire listed Japanese equity market. The fund is physically-backed and, due to the composition of the Japanese economy, has a focus on industrial, consumer discretionary, financial, and technology companies.
Posted in Equities |
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Tags: Asia Pacific, Currencies, Equities, ETF Industry News, ETF Launch, iShares, MSCI
Aug 1st, 2012 |
By Simon Smith, CFA
FTSE Group has leveraged its combined index and analytics experience to launch a series of indices aimed at delivering reduced index volatility. The newly launched FTSE Global Minimum Variance Index Series provides investors with a broad, diversified and investable portfolio incorporating a low volatility/variance objective, thereby offering potential improvements to the risk/reward trade-off versus conventional indices. The index series will compete against similar products from MSCI, S&P, Stoxx and Russell and could form the basis for future ETF launches.
Posted in ETF and Index News |
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Tags: Equities, ETF and Index News, ETF Industry News, FTSE, Global, Invesco, iShares, Lyxor, MSCI, Ossiam, Russell, Russell Indexes, S&P Dow Jones, STOXX, Volatility