Archive for July 2014

Outcome-oriented investment approaches driving institutional ETF adoption

Jul 31st, 2014 | By
Outcome-oriented investment approaches driving institutional ETF adoption

Cerulli Associates, a Boston-based asset management research firm, has published research noting that interest in specific investment outcomes will play a major part in driving institutional exchange-traded fund adoption. Outcome-oriented investment approaches typically ignore conventional benchmarks and instead focus on achieving a particular goal. “Smart beta” strategies appear to have a growing roll in this investment approach. One ETF sponsor told Cerulli that institutional use of smart beta will be a key driver of institutional asset management mandates over the next three years and that exposure will likely come via ETFs.



MSCI scores with ETF issuers and investors

Jul 29th, 2014 | By
MSCI scores with ETF providers and investors

MSCI, a leading index provider to the exchange-traded funds industry, has released data highlighting the continuing strength of its brand within the ETF market. According to the provider, ETF investors directed a larger proportion of new funds into ETFs based on its indices than any other index provider during the first six months of 2014. The provider also noted that ETF issuers launched more new funds based on its indices than those of any other provider. Baer Pettit, Managing Director and Global Head of MSCI’s index business, said: “We are delighted with these numbers which are further evidence of MSCI’s strength in the ETF market”.



Boost introduces short & leveraged copper and palladium ETPs on Borsa Italiana

Jul 29th, 2014 | By
Amundi cross-lists five ETFs to Borsa Italiana

Boost, a leading European provider of short and leveraged exchange-traded products, has launched Italy’s first triple-leveraged long and short copper ETPs and the country’s first ever short and leveraged palladium ETPs (of any leverage factor). They are linked to sub-indices of the Nasdaq Commodity Benchmark Index. The launch takes the total number of Boost ETP listings in Europe, across the London Stock Exchange, Borsa Italiana and Xetra, to 72.



DeAWM builds out low cost “core” offering with launch of MSCI World ETF

Jul 28th, 2014 | By
Deutsche introduces GBP-hedged MSCI World ETF to Switzerland

Deutsche Asset & Wealth Management (DeAWM), the asset manager behind the db x-trackers brand of exchange-traded funds, has added to its range of low cost “core” ETFs. The latest addition to the range is the physically replicated db x-trackers MSCI World Index UCITS ETF (DR) (XDWD), listed on the London Stock Exchange. The fund provides exposure to the MSCI World Index, a benchmark capturing the performance of large and mid-cap stocks in 23 developed market countries.



Market Vectors launches China A-Share ETF investing in SME and high growth stocks

Jul 27th, 2014 | By
China A-shares ETFs see little relief from news of Shenzhen-Hong Kong Stock Connect

Market Vectors, a US-based provider of exchange-traded funds, has announced the launch of the Market Vectors ChinaAMC SME-ChiNext ETF (CNXT), an innovative new fund providing direct physical A-Share exposure to SME and high growth stocks listed in China. Launched in collaboration with ChinaAMC, one of China’s largest asset managers, the fund is linked to the SME-ChiNext 100 Index, an index tracking the performance of the 100 largest and most liquid stocks listed and trading on the Small and Medium Enterprise (SME) Board and the ChiNext Board of the Shenzhen Stock Exchange.



S&P Dow Jones expands smart beta offering; unveils S&P Quality Indices

Jul 27th, 2014 | By
S&P Dow Jones expands smart beta offering; unveils S&P Quality Indices

S&P Dow Jones Indices, one of the world’s leading providers of indices to ETFs, has unveiled the S&P Quality Indices, a new family of indices tracking “high quality” stocks. The indices are designed to measure the performance of stocks which score well on three fundamental measures of quality: return on equity, accruals ratio and financial leverage ratio. Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices, said: “The launch of the S&P Quality Index family provides investors with a factor-based benchmark that captures the characteristics of high quality companies.”



First Trust, DWA roll out international “Focus Five” ETF

Jul 26th, 2014 | By
First Trust, DWA roll out international “Focus Five” ETF

First Trust has teamed up once again with relative strength experts Dorsey Wright & Associates (DWA), this time to launch an international equity ETF. Listed on Nasdaq, the First Trust Dorsey Wright International Focus 5 ETF (IFV) is based on a systematic momentum strategy index designed to provide exposure to the five First Trust international equity ETFs identified to offer the greatest potential to outperform. Tom Dorsey, President & CEO of DWA, said: “I am excited that we have collaborated with First Trust to bring a second ETF that captures the Dorsey Wright Focus Five methodology and now provides investors with a tactical international equity strategy.”



Canada’s ETF industry set for continued growth

Jul 26th, 2014 | By
Canada’s ETF industry set for continued growth

The Canadian exchange-traded fund industry stood at $70.1 billion in assets under management at the mid-way point of the year, according to a report from BMO Global Asset Management. Assets are up 11.1 percent from year-end 2013, led by fixed income ETFs with more than $2.5 billion of inflows. Rajiv Silgardo, Co-CEO, BMO Global Asset Management: said: “We expect the momentum into ETFs to continue at a rapid pace, as more investors use more ETFs to build better portfolios.”



HuaAn unveils China’s first DAX ETF

Jul 18th, 2014 | By
HuaAn unveils China’s first DAX ETF

HuaAn Asset Management has introduced the HuaAn Germany DAX 30 ETF, China’s first locally domiciled exchange-traded fund to provide exposure to the DAX Index. The ETF, which has been listed on the Shanghai Stock Exchange, means Chinese investors can now access the performance of leading German companies for the first time. Li Qing, CEO of HuaAn, said: “[The fund] opens the door to invest in Germany and EU for China investors. The era of global asset allocation has come to China, and HuaAn aims to be the leading asset management company at home and abroad.”



Smart beta specialist Ossiam hits $2bn AUM milestone

Jul 17th, 2014 | By
Smart beta specialist Ossiam hits $2bn AUM milestone

Ossiam, a leading European provider of smart beta exchange-traded funds, has revealed that assets under management have surpassed $2 billion. The Paris-based firm, which is an affiliate of Natixis Global Asset Management, was founded 2010 and has quickly established itself as one of the foremost providers of alternative beta strategies. Bruno Poulin, CEO of Ossiam, said: “The alternative-weighted index ETF market has developed considerably since our first fund launches in 2011. This is likely to be a long-term trend. Institutional and retail investors and their advisers have come to realise that alternative beta funds, including ETFs, can add value to their investment portfolios.”