FlexShares has introduced two new exchange-traded funds (ETFs), the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index ETF (TLTD) and the FlexShares Morningstar Emerging Market Factor Tilt Index ETF (TLTE), that focus on developed markets outside the US and emerging markets while seeking to counterbalance the inherent bias towards large-growth companies embedded in market-weighted strategies.

BMO InvestorLine, a Canadian online broker, has encouraged investors to consider including exchange-traded funds (ETFs) in their portfolios as part of a well-balanced investing strategy. “Investors looking for investment options that offer diversification and broad exposure to a variety of markets – at a low cost – should consider incorporating ETFs into their portfolio,” said Cesar Rainusso, Vice President, BMO InvestorLine.

Global ETFs and ETPs gathered $188 billion of net new assets year-to-date through the end of Q3 2012, setting a new record high and surpassing the prior record of $170 billion gathered in 2011, according to ETFGI LLP, an independent research and consulting firm. Boosted by these inflows, assets in global ETFs and ETPs reached an all-time high of $1.86 trillion at the end of Q3, surpassing the prior record of $1.76 trillion set at the end of August 2012.

IndexIQ, a leading US-based provider of alternative index-based exchange-traded funds (ETFs), has announced the launch of the IQ Hedge Market Neutral Tracker ETF (QMN). The latest addition to the firm’s hedge fund replication ETF family, QMN tracks the IQ Hedge Market Neutral Index, a proprietary index designed to offer investors liquid and transparent market neutral hedge fund exposure, by investing in a range of ETFs.

Exchange-traded products (ETPs) benchmarked to base metals have soared since the US Federal Reserve announced that it was extending its quantitative easing programme, so-called QE3. One of the reasons behind the surge is that the Fed’s asset-purchase programme is unsterilised, meaning the Fed is essentially printing new money. In this kind of environment, when new money is being created, real, hard assets are likely to do well.

The index-versus-active debate has been bubbling away for years. And with strong opinions on both sides, it is likely to remain a contentious issue. However, over the last decade, Standard & Poor’s has been serving as the de facto scorekeeper of this debate through the maintenance of its S&P Indices versus Active Funds Scorecard (SPIVA). The latest results show that the overwhelming majority of active funds underperformed their benchmark across all asset classes over the past five years.

UBS has expanded its range of exchange-traded funds (ETFs) listed on the London Stock Exchange (LSE) with the introduction of three new funds. The additional funds, which provide exposure to ‘socially responsible’ companies and Brazil, reflect the Swiss firm’s commitment to the London market and come just three months after it made its ETF debut on the exchange.

FTSE Group and the Nairobi Securities Exchange (NSE) have announced the launch of the FTSE NSE Kenyan Shilling Government Bond Index, the world’s first independently calculated benchmark tracking the principal Kenyan government bond market. The index is designed to provide investors with an accurate metric to measure the performance of Kenyan sovereign debt.

First Asset Exchange Traded Funds, a leading Canadian ETF provider, has announced that First Asset Morningstar Emerging Markets Composite Bond Index ETF (EXM) has commenced trading on the Toronto Stock Exchange. The fund provides exposure to the most liquid sovereign and corporate bonds issued in US dollars by governments and corporations in emerging markets.