Archive for June 2014

BlackRock UK awarded RQFII license, precursor to China ETF

Jun 27th, 2014 | By
BlackRock launches global aggregate bond ETF

BlackRock, the asset manager behind the iShares brand of exchange-traded funds, has been awarded its second Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission. The licence has been awarded to BlackRock’s UK registered business, enabling the firm to invest in domestic capital markets in China including the A-Share equity and onshore bond markets. BlackRock will now apply for investment quotas, which should ultimately lead to the launch of a London-listed ETF from iShares providing physical exposure to China.



MSCI launches new China A and All Share indices

Jun 27th, 2014 | By
ChinaAMC licenses MSCI China A Index for new China A Shares ETF

MSCI, a major provider of indices to exchange-traded funds, has launched two new indices for the China equity market – the MSCI China A International Index and the MSCI China All Shares Index. Both indices are designed for international investors with QFII/RQFII quotas and can be used as benchmarks or as the basis of index-linked products such as ETFs. The MSCI China A International Index, which currently contains 221 securities, represents the A-share component of the MSCI China All Shares Index, which combines A, B and H Shares with Red and P Chips.



LSE to acquire Russell, creating major player in ETF indexing space

Jun 26th, 2014 | By
VanEck launches two new ETFs in London

London Stock Exchange Group (LSE) has been successful in its bid to acquire the Frank Russell Company. The board of LSE believes the acquisition is a rare opportunity to acquire a high quality US business with a leading global indexing brand – Russell Indexes. The acquisition comes at a time when passive index-linked investing – particularly via exchange-traded funds – is fast taking market share from traditional active strategies. The combination of Russell Indexes with FTSE, LSE’s existing index brand, creates a global leader in index services and the number three provider of indices to ETFs globally.



Active ETFs on growth trajectory

Jun 26th, 2014 | By
ETFs reveal valuable insights into market conditions, finds Vanguard.

Actively managed exchange-traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, according to a paper released by investment services provider SEI. This upward trend further demonstrates the attractiveness of active ETFs to both financial advisors and investors due to their lower costs, increased transparency and liquidity, and potential tax efficiency when compared to mutual funds.



Investors want more ETFs as smart beta stirs interest

Jun 26th, 2014 | By
Investors want more ETFs as smart beta stirs interest

Even with a perceived proliferation of exchange-traded funds on the market today, two-thirds of investors say there is room for more, according to a new study by retail broker Charles Schwab. Among them, nearly 60 percent say more ETFs will lead to increased competition and lower prices, and that continued product innovation is necessary to keep up with a changing market and economy. More than a quarter say that more product choice is the industry trend that has most benefited investors in the past few years, while forty percent are particularly keen to learn more about ‘smart beta’ and how these innovative products can best be harnessed.



Lyxor builds out small and mid-cap equity ETF offering

Jun 26th, 2014 | By
Amundi lists distributing share class of Euro Stoxx 50 ETF on Xetra

Lyxor Asset Management, Europe’s third largest provider of exchange-traded funds, has built out a comprehensive suite of small and mid-cap equity ETFs. With recent new launches, Lyxor becomes the first ETF provider to offer a complete range of European small and mid-cap equity ETFs both regionally and by country. The suite enables investors to capture the risk premium from small and mid-cap equities over the long term. In Europe, small-caps stocks have outperformed large-cap stocks by 4.8% on an annualised basis over the last 10 years.



Morgan Stanley introduces smart beta ETF on LSE

Jun 24th, 2014 | By
Morgan Stanley settles charges related to misselling of inverse ETFs

Morgan Stanley has introduced its debut exchange-traded fund, the MS Scientific Beta Global Equity Factors UCITS ETF (GEF). The ETF, which was unveiled on the London Stock Exchange earlier this month, provides exposure to the Scientific Beta Developed Multi-Beta Multi-Strategy Equal Weight Index and is the first ETF to be launched between Morgan Stanley and smart beta index provider ERI Scientific Beta. Rolled out under the investment bank’s FundLogic platform, the fund aims to meet the growing demand from institutional investors to access smart beta indices and factor indices through liquid and transparent products.



Source slashes price of S&P 500 ETF to just 0.05%

Jun 23rd, 2014 | By
Amundi to launch S&P 500 buyback ETF

Source, one of Europe’s leading providers of exchange-traded funds, has slashed the management fee on its S&P 500 ETF. At just 0.05%, or five basis points, the Source S&P 500 UCITS ETF (SPXS) is now one of the most aggressively priced ETFs globally. Already one of the most efficient S&P 500 ETFs in Europe, the cut in management fee will further contribute towards the fund’s accurate and stable performance versus the index. Listed on the London Stock Exchange, SIX Swiss Exchange and Deutsche Börse, the fund has already attracted substantial inflows and is now approaching $1 billion in assets.



Better platform access and more education needed to increase ETF usage, shows poll

Jun 23rd, 2014 | By
Better platform access and more education needed to increase ETF usage, shows poll

Vanguard Asset Management, one of the world’s leading providers of exchange-traded funds, has released the findings of a poll showing that better access on UK platforms and more education are seen as key to determining future allocation to ETFs. Nick Blake, Head of Retail for Vanguard in Europe, said: “We are seeing increased appetite for ETFs as many more advisers are recommending them for clients’ portfolios. However, it comes as no surprise that more education and better availability on UK platforms is needed to encourage greater usage.”



Lyxor to convert three blue-chip ETFs to physical replication

Jun 23rd, 2014 | By
Lyxor to convert three blue-chip ETFs to physical replication

Lyxor, Europe’s third largest provider of exchange-traded funds, has announced that three of its largest ETFs are to be converted to physical replication. The ETFs in question are linked to the CAC 40, IBEX 35 and DAX indices and have approximately €5 billion in assets. Arnaud Llinas, global head of ETFs and indexing at Lyxor, said: “Our strategy is to offer our clients the most efficient ETFs by selecting the most appropriate replication method for each index. We believe we can now offer a better product on the CAC 40, IBEX 35 and DAX by using a direct replication method”.