Archive for February 2014

DeAWM to create ultra low cost suite of physical ETFs

Feb 10th, 2014 | By
DeAWM to create low cost suite of physical ETFs

Deutsche Asset & Wealth Management (DeAWM) is to create a range of low cost, physically replicated exchange-traded funds linked to the DAX, FTSE 100, EuroStoxx 50, and MSCI USA indices, featuring total expense ratios of just 0.09% per annum. Reinhard Bellet, DeAWM’s Head of Passive Asset Management, said: “With this range of low TER ETFs we aim not just to enhance our offering to current investors, but also to broaden our investor base. The combination of low TERs, intraday liquidity, visibility and transparency offered by our ETFs should make them appeal to an even wider cross-section of the investor community.”


Global ETF and ETP assets suffer 3.2% decline in January 2014

Feb 10th, 2014 | By
Demand for low volatility ETFs pushes global smart beta AUM to record high

Global ETF/ETP assets fell by 3.2% to $2.32 trillion in January 2014 based on negative market performance and net outflows of $7.6 billion, according to preliminary findings from ETFGI’s January 2014 Global ETF and ETP industry insights report. “Concerns about economic uncertainty and unrest in emerging markets, a fear that US stocks are over bought and uncertainty over the impact of Fed tapering caused investors to take net outflows of $7.6 billion from ETFs/ETPs in January 2014”, said Deborah Fuhr, Managing Partner at ETFGI.


Amundi rolls out Russell 2000 ETF on NYSE Euronext Paris

Feb 6th, 2014 | By
ETF satisfaction at very high levels, according to EDHEC-Risk Institute

Amundi ETF, the exchange-traded funds division of asset management giant Amundi, has expanded its lineup of ETFs with the launch of the Amundi ETF Russell 2000 UCITS ETF (RS2K) on the NYSE Euronext in Paris. The fund is linked to the Russell 2000, a leading index of US small capitalisation stocks. Valérie Baudson, Global Head of ETF and Indexing at Amundi, commented: “This new ETF is another example of our commitment to launch competitively-priced products and offers a new allocation brick for US equities.”


iShares expands lineup of currency hedged ETFs

Feb 6th, 2014 | By
iShares expands lineup of currency hedged ETFs

iShares, the exchange-traded fund business of investment giant BlackRock, has launched three new currency hedged ETFs designed to reduce the impact of currency fluctuations on returns when investing in foreign countries. Daniel Gamba, Head of iShares Americas Institutional Business at BlackRock, said: “Today’s volatile global currency rates are causing investors with international portfolios to pay closer attention to how they can manage currency fluctuations. iShares Currency Hedged ETFs offer an efficient and cost-effective solution in a single transaction, so investors don’t have to manage complex currency hedging strategies.


WisdomTree launches floating rate Treasury bond ETF

Feb 6th, 2014 | By
MSCI: What Fed monetary policy has meant for factors

WisdomTree, a leading provider of exchange-traded funds, has announced the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR), an ETF providing exposure to floating rate notes issued by the US Treasury. The new fund, which has been listed on the NYSE Arca and is linked to the Bloomberg US Treasury Floating Rate Bond Index, represents an effective way for investors to help reduce their exposure to rising interest rates while generating income payments that are backed by the full faith and credit of the US government.


Another good year for ETF inflows

Feb 6th, 2014 | By
Tradeweb reports strong trading activity for fixed income ETFs during February

Thanks to their non-complex structure, transparency and low costs, exchange-traded funds (ETFs) have managed to weather the financial crisis and see their assets consistently grow year after year. As at end of November 2013, global ETF assets reached $2,211 billion, $457 billion up from end of December 2012, according to data from ETFGI, a London-based consultancy. The US was the driving force behind this increase with $365 billion, while the European ETF market grew by a more modest $57 billion (ETFGI data).