Archive for January 2014

Regulatory approval of non-transparent ETF structure edges closer

Jan 24th, 2014 | By
Regulatory approval of Eaton Vance's new active ETF structure edges closer

Eaton Vance has filed a second amended application with the US Securities and Exchange Commission seeking exemptive relief to permit the offering of exchange-traded managed funds (ETMFs), a form of non-transparent actively managed exchange-traded fund (ETF). Eaton Vance is seeking to launch a family of ETMFs that mirror existing Eaton Vance mutual funds and to license the underlying technology to other fund groups through its affiliate Navigate Fund Solutions.

Euronext introduces multi-currency trading service for ETFs

Jan 24th, 2014 | By
Euronext launches multi-currency trading service for ETFs

Euronext has announced the launch of a multi-currency trading service for exchange-traded funds (ETFs), including for the first time on a US or European exchange, the Chinese Yuan Renminbi (CNY) and the Hong Kong Dollar (HKD). The new service will allow international investors to trade any Euronext-listed ETFs in 20 different currencies. By offering investors the possibility of buying an ETF in multiple currencies, Euronext is simplifying access to the international markets, reducing currency exchange risk and foreign exchange costs, and providing investors broader investment opportunities.

DeAWM expands currency-hedged ETF lineup

Jan 23rd, 2014 | By
DeAWM expands currency-hedged equity ETF lineup

Deutsche Asset & Wealth Management (DeAWM) has expanded its lineup of currency-hedged exchange-traded funds with the launch of three new db X-trackers ETFs on the NYSE Arca. Martin Kremenstein, Head of Passive Asset Management for DeAWM Americas, said: “In the current market environment, investors are looking for products to help them manage exposure to currency risk in their international investments. For this reason, we continue to expand our hedged equity platform to include countries and regions where the management of currency risk can strengthen a global equity portfolio.”

Institutional uptake of smart beta ETFs increasing

Jan 23rd, 2014 | By
Invesco PowerShares to launch multi-strategy alternative ETF in partnership with Morgan Stanley

One in four institutional investors report using smart beta ETFs, and adoption among non-users is likely to accelerate in the near future, according to a new study conducted by Cogent Research, a division of Market Strategies International. The results reveal that nearly half (46%) of institutional decision-makers not currently using smart beta ETFs indicate they are likely to start using the products over the next three years, particularly institutional investors with assets in excess of $500 million.

Warburg Pincus acquires majority stake in European ETP provider Source

Jan 23rd, 2014 | By
Source assets surge on back of Warburg Pincus deal

Global private equity firm Warburg Pincus has acquired a majority stake in Source, a leading European provider of exchange-traded products (ETPs). The deal will see new money injected into the London-based provider to help it enhance its product offering, develop distribution capabilities and expand through acquisitions. Lee Kranefuss, currently an executive-in-residence at Warburg Pincus, will join the firm as executive chairman. Kranefuss was formerly global CEO of ETF giant iShares.

PowerShares launches NYSE Century ETF

Jan 22nd, 2014 | By
PowerShares launches NYSE Century ETF

Invesco PowerShares, a leading global sponsor of exchange-traded funds, and NYSE Euronext, an exchange operator and index provider, have announced the launch of the PowerShares NYSE Century Portfolio ETF (NYCC). The ETF, which has been listed on the NYSE Arca, is the first to be based on the NYSE Century Index, an index composed of American companies that have been incorporated in the US for at least 100 years, maintain a current US listing and have a market capitalization of at least $1 billion.

AdvisorShares partners with Sage on active cash management ETF

Jan 22nd, 2014 | By
S&P DJI reports over $1tn in ETP assets linked to its indices

AdvisorShares, a US-based sponsor of exchange-traded funds, has partnered with Sage Advisory Services, an Austin, Texas-based asset manager, to launch its latest actively managed ETF. The AdvisorShares Sage Core Reserves ETF (HOLD), which has been listed on the NYSE Arca, aims to preserve capital while maximizing income. It seeks to achieve this objective by investing in a broad range of fixed-income securities and US dollar denominated investment grade debt securities, with an average duration of less than one year.

Market Vectors launches short duration high-yield municipal bond ETF

Jan 22nd, 2014 | By
Spotlight on US municipal bond ETFs

Market Vectors, the exchange-traded funds brand of Van Eck, has announced the launch of the Market Vectors Short High-Yield Municipal Index ETF (SHYD), an NYSE Arca-listed ETF providing exposure to the shorter end of the municipal yield curve. The fund is linked to the Barclays Municipal High Yield Short Duration Index, a market value weighted index composed of publicly traded municipal bonds that cover the US dollar-denominated high yield short-term tax exempt bond market.

RBC unveils four income-oriented ETFs

Jan 22nd, 2014 | By
RBC launches seven new ETFs

RBC Global Asset Management (RBC GAM), a division of the Royal Bank of Canada, has launched four new exchange-traded funds (ETFs) designed to meet investors’ demand for investments generating regular monthly income. The ETFs, all of which have been listed on the Toronto Stock Exchange, include three dividend-focused equity funds and one short- to mid-term fixed income fund.

Horizons introduces leveraged and inverse MSCI Japan ETFs

Jan 22nd, 2014 | By
WisdomTree: Abe's landslide means Japanese equities deserve higher PE

Horizons ETFs, a global provider of exchange-traded funds, has introduced a pair of products on the Toronto Stock Exchange offering short and leveraged exposure to the Japanese equity market. The Horizons BetaPro MSCI Japan Bull Plus ETF (HPU) and Horizons BetaPro MSCI Japan Bear Plus ETF (HPD) provide investors with exposure to two times the daily long and two times the daily inverse performance, respectively, of the MSCI Japan Index.