Archive for June 2015

China Construction Bank and Commerbank launch RMB-denominated MM ETF in Paris

Jun 30th, 2015 | By
Commerzbank launches STOXX Europe 600 ETF on Deutsche Börse

Euronext, the European stock exchange, has welcomed the arrival of the first European-listed, renminbi-denominated money market to its Paris market. The Commerzbank CCBI RQFII Money Market UCITS ETF, which has been listed to trade in renminbi or euros, offers exposure to the interbank bond market in Mainland China. The move highlights the growing activity of offshore renminbi trading in Europe. The ETF is the result of a collaboration between Commerzbank and China Construction Bank, with the management of the fund being undertaken by the latter.

Research from Source shows how investors are using ETFs

Jun 30th, 2015 | By
Source lists debut US ETF

A new survey from London-based exchange-traded fund provider Source points to continued demand for ETFs, particularly as a method of gaining broad market exposure, with growth in smart beta strategies also expected to be strong. Of the 559 professional investors and advisers interviewed, 71% were currently invested in passive tracker ETFs, with 37% of respondents expecting to increase their allocation in 2015.

Direxion debuts inverse China A-Shares ETF

Jun 30th, 2015 | By
Direxion debuts inverse China A-Shares ETF

Direxion Investments, a US-based provider of short and leveraged exchange-traded funds, has launched the first ever US-listed ETF providing short exposure to the Chinese A-Share market. The Daily CSI 300 China A Share Bear 1X ETF (NYSE Arca: CHAD) tracks the inverse return of the CSI 300 Index, a market-capitalisation weighted reference of the performance of the 300 largest China A-Share companies. The recent volatility in Chinese equity prices has highlighted the need for more flexible tools when investing in these markets.

Greece ETF slumps as Athens Stock Exchange remains closed

Jun 30th, 2015 | By
Russell Indexes downgrades Greece to emerging market

The Global X FTSE Greece 20 ETF (GREK), the only pure-play Greece-focussed ETF, lost 19% of its value during early trading on Monday on the NYSE Arca. The ETF, which tracks the FTSE-ATHEX Custom Capped Index, slumped as investors came to terms with an official Greek default, the first ever default on an IMF loan from a Western country. Sovereign borrowing costs, especially the 2-year rate, soared as the near-term future of the Hellenic economy looked increasingly dire. Several key markets around the world were also affected, with Euro Stoxx 50 ETFs also taking a hit.

Confidence in smart beta ETFs high, reveals EDHEC-Risk

Jun 30th, 2015 | By
EDHEC-Risk Institute criticises IOSCO’s stance on ETF index principles

A quarter of investors are using smart beta strategies according to the 2014 EDHEC Risk Institute survey of ETF usage, with half of those employing ETFs to implement these strategies. The survey, produced with the support of Amundi, a leading European ETF provider, provides an optimistic outlook for the smart beta industry. The results point to significant growth in assets under management and product launches in the coming years, driven by a belief that these strategies can beat market capitalisation-weighted indices and the evolution of their role in the portfolio construction process.

WisdomTree launches currency-hedged ETF providing exposure to non-US dividend-paying firms

Jun 30th, 2015 | By
WisdomTree launches China equity and global balanced income ETFs

WisdomTree, a leading global provider of exchange-traded funds (ETFs) have launched the Global ex-US Hedged Dividend ETF (DXUS), providing investors exposure to non-US dividend-paying firms, while mitigating the effects of unfavourable movements in exchange rates. WisdomTree proposes that this ETF provides a more favourable reach into dividend-related investing, including offering a tasty income stream, as international firms have historically paid larger dividends than US firms. It is also argued that currency-hedging has provided a better risk-return profile historically than leaving such products exposed to currency movements.

Blair Hull’s new actively managed ETF targets hedge fund-like returns

Jun 26th, 2015 | By
Market Wizard Blair Hull's new actively managed ETF targets hedge fund-like returns

Investment advisor Hull Tactical Asset Allocation has announced the launch of the Hull Tactical US ETF (HTUS), an actively managed exchange-traded fund designed to deliver hedge fund-like returns by timing exposure to the S&P 500. “Investing in the S&P 500 can be an uncertain game, but a disciplined and systematic approach can help you to outperform on a risk-adjusted basis,” said Blair Hull, Founder of Hull Tactical Asset Allocation.

US active managers struggle to beat passive fund returns

Jun 26th, 2015 | By
Morningstar reports strong 7.5% quarterly growth in ETF Managed Portfolios

Morningstar, a leading provider of independent investment research, has introduced the Active/Passive Barometer, with the inaugural reading showing that US active managers have struggled to outperform passive funds over the past decade. The active-versus-passive debate stretches back years, with many academics finding strong evidence that active managers fail to add value after fees. The strong inflows into exchange-traded funds seen over the past decade, which has seen global ETF AUM surge beyond the $3 trillion milestone, appear to suggest investors are in agreement.

BlackRock launches iShares Convertible Bond ETF on BATS Exchange

Jun 26th, 2015 | By
Investors turn to ETFs during Tuesday’s market volatility, finds BlackRock

BlackRock has announced the launch of the iShares Convertible Bond ETF (ICVT), providing exposure to US dollar-denominated convertible bonds. The ETF has been listed on BATS Exchange and seeks to track the performance of the Barclays US Convertibles Cash Pay Bond > 250m Index. The fund captures the benefits of convertible bond investing in a cost-efficient manner and will appeal to investors looking to benefit from potential upside gains in equity markets while wanting to limit the downside risk of investing in equities.

S&P DJI indexed assets surpass $3tn led by growth of ETFs

Jun 25th, 2015 | By
S&P Dow Jones announces aggressive expansion of fixed income index business

S&P Dow Jones Indices (S&P DJI), one of the world’s leading index providers, estimates that $3.05 trillion is now directly invested in products based upon their equity and fixed income indices, with recent growth being powered by ETFs. Alex Matturri, CEO of S&P DJI, commented: “Investor interest in index products based upon S&P DJI indices continues to grow and be met by our leading family of US stock market indices and increasingly by our growing family of fixed income indices. While market cap-weighted indices remain at the core of our offerings, we are now seeing strong growth in smart beta-based index strategies amongst all of our client segments throughout the world.”