Archive for December 2013

BlackRock: Time to “squeeze more juice” out of risk assets

Dec 9th, 2013 | By
iShares expands actively managed factor ETF offering

Risk assets such as stocks and corporate bonds have further to run in 2014, even as a global tide of easy money slows, according to the BlackRock Investment Institute’s 2014 Investment Outlook. BlackRock is the parent of iShares, the world’s largest provider of exchange-traded funds (ETFs). The outlook, “Squeezing Out More Juice,” considers key factors—such as the gradual exit from quantitative easing in the United States, tentative signs of a weak European recovery, Japan’s growth plan and China’s reform agenda – and their potential to create upside surprises or unforeseen downside risks.


DeAWM to convert 18 synthetic ETFs into physical products

Dec 8th, 2013 | By
Deutsche to introduce quality screening to euro STOXX dividend ETF

Deutsche Asset & Wealth Management (DeAWM) has revealed plans to convert the index tracking methodology of a swathe of db X-trackers exchange-traded funds. The 18 ETFs affected by the decision are currently implemented using a swap-based (also known as “synthetic”) approach. Between 6 January 2014 and 30 June 2014 these funds will transition to a physically replicated (or “physical”) approach. The conversions are expected to take total assets under management in physical db X-trackers ETFs to approximately €9.5 billion, making DeAWM the second largest provider of physical ETFs in Europe.


ETF and ETP assets outstrip hedge funds

Dec 8th, 2013 | By
Demand for low volatility ETFs pushes global smart beta AUM to record high

Assets invested in ETFs and ETPs have surpassed (or at least are on course to do so soon) the level of assets invested in hedge funds, despite hedge funds having been around for triple the number of years. That’s according to ETFGI, a London-based consultancy headed up by industry veteran Deborah Fuhr. ETFGI notes that assets invested in ETFs/ETPs have been growing at a compound annual growth rate of 29.6% over the past 10 years, a rate which far exceeds that of hedge funds.


ETF strategies for rising interest rates

Dec 8th, 2013 | By
ETF strategies for interest rate rises

By David Stevenson. It is, of course, one of the least well kept secrets within the shady world of international finance, that at some stage our collective national pension scheme pots will be mutilated by a substantial fall in the value of government securities particularly, and bonds generally, following an interest rate increase. Fortunately for investors there’s a whole host of innovative ETFs out there to help mitigate portfolios from such a scenario.


Global ETF and ETP assets continue to surge

Dec 6th, 2013 | By
Global X launches USD money market ETF on HKEX

Global exchange-traded fund (ETF) and exchange-traded product (ETP) assets hit yet another record high at the end of November, as the combination of $17.0 billion in net inflows and positive market performance pushed assets to $2.4 trillion, according to preliminary data from ETFGI, a London-based consultancy. Equity ETFs/ETPs gathered the largest net inflows with $18.2 billion, followed by fixed income ETFs/ETPs with $1.1 billion, while commodity ETFs/ETPs experienced the largest net outflows with $1.7 billion.


FinEx adopts Curex FX benchmarks for currency-hedged ETFs

Dec 6th, 2013 | By
First Trust to launch actively managed currency ETF on London Stock Exchange

FinEx ETF, a London-headquartered provider of exchange-traded funds (ETFs) with a strong presence in Russia, has signed an agreement with Curex Group, a provider of foreign exchange management capabilities, to embed patented Curex FX systems and FX execution audit technologies into its line-up of currency-hedged share class ETFs.


SSgA SPDR launches “beyond BRIC” ETF on NYSE

Dec 6th, 2013 | By
Deutsche launches Latin America ex-Brazil ETF in US

State Street Global Advisors (SSgA), sponsor of the SPDR line-up of exchange-traded funds, has announced that the SPDR MSCI Beyond BRIC ETF (EMBB) has begun trading on the NYSE Arca. The ETF tracks the MSCI Beyond BRIC Index, offering investors an opportunity to access emerging market economies that have not received as much attention as the BRICs (Brazil, Russia, India and China), which represent more than 40 percent of the MSCI Emerging Markets Index.


WisdomTree’s small-cap dividend ETF surpasses $1 billion in assets

Dec 6th, 2013 | By
WisdomTree’s ETF model portfolios now available through Envestnet Wealth Management platform

The WisdomTree SmallCap Dividend ETF (DES) has surpassed $1 billion in assets. Listed on the NYSE Arca, the fund tracks the WisdomTree SmallCap Dividend Index, a fundamentally weighted index that measures the performance of the small-capitalization segment of the US dividend-paying market. Luciano Siracusano, WisdomTree Chief Investment Strategist, said: “By weighting the US small-cap market by the dividends companies pay, WisdomTree has been able to create a potential source of income for investors looking for alternatives in today’s low-interest rate environment.”


FTSE introduces FTSE UK Digital Services Index

Dec 6th, 2013 | By
FTSE introduces FTSE UK Digital Services Index Series

FTSE, the third largest provider of equity indices to exchange-traded funds (ETFs), has announced the launch of the FTSE UK Digital Services Index Series, which will act as a reference and benchmark of UK companies operating in the digital sector. A company is eligible for the index series if it derives more than 50% of its revenues from either digital or online services, or if it is considered to be engaged in providing services that are integral and critical for the functioning of digital services.


Industry experts welcome abolition of stamp duty on UK ETFs

Dec 5th, 2013 | By
Industry experts welcome abolition of stamp duty on UK exchange-traded funds (ETFs)

The Chancellor has announced that the UK government will abolish the stamp duty on purchases of shares in exchange-traded funds (ETFs) that would currently apply if an ETF were domiciled in the UK. Monica Gogna, a partner at Pinsent Masons, said: “It is heartening to hear the Chancellor’s move to support the financial services sector demonstrated by the move to abolish stamp duty for ETFs. This is surely another sign that the ETF industry in Europe is set to grow and compete with the much larger ETF sector in the USA.”