Archive for September 2015

SSE and CSI team up on carbon emission-based index for China investors

Sep 29th, 2015 | By
GreenHaven unveils coal ETF

The Shanghai Stock Exchange and China Securities Index have announced the launch of the first China index targeting carbon-efficient companies: the SSE 180 Carbon Efficient Index. The new index enables investors to track the performance of low carbon-emitting Chinese companies and can also be used as the basis for index-linked products such as exchange-traded funds. There has been a surge in demand for environmental, social and governance (ESG) indices this year, with MSCI recently reporting a 30% rise in ETF assets tracking ESG indices to $1.8bn. Considering China’s economic development strategy, which increasingly emphasises the need for green and low-carbon growth, the index is well placed to benefit from this structural shift in the economy.



FlexShares introduces credit-scored US corporate bond ETF

Sep 29th, 2015 | By
UBS broadens range of fixed income ETFs with new medium duration offering

FlexShares, the exchange-traded funds arm of Northern Trust, has introduced the FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) offering exposure to long-maturity US corporate bonds complemented by a credit evaluation process. The strategy is designed to provide investors with the yield benefits of longer maturity (10+ years) investment grade corporate bonds, while offering a method of capital protection through credit evaluation and improved liquidity. “The FlexShares Credit-Scored US Long Corporate Bond Index Fund provides investors with a contemporary approach to optimising credit risk, with improved transparency and liquidity relative to legacy corporate bond benchmarks,” said Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group.



ETF Securities brings cyber security ETF to Europe

Sep 28th, 2015 | By
Yahoo hack exposes potential for cyber security ETFs

ETF Securities, a London-based issuer of exchange-traded funds, has partnered with US-based index provider ISE ETF Ventures to launch the ETFS ISE Cyber Security GO UCITS ETF, Europe’s first locally listed ETF to offer pure-play exposure to the fast-growing cyber security sector. Listed on the London Stock Exchange, the ETF is based on a UCITS-compliant version of the index behind the hugely successful NYSE Arca-listed PureFunds ISE Cyber Security ETF, known colloquially by its exchange ticker code “HACK”, which attracted in excess of $1.1bn in assets under management in its first 10 months of trading.



iShares launches MSCI Saudi Arabia ETF on NYSE

Sep 28th, 2015 | By
iShares expand single-country ETF range with industry’s first Saudi Arabia fund

iShares has unveiled the iShares MSCI Saudi Arabia Capped ETF (NYSE Arca: KSA), offering investors an opportunity to gain direct exposure to Saudi Arabian equities. The fund tracks the performance of the MSCI Saudi Arabia IMI 25/50 Index and is the first western-listed ETF to track Saudi Arabia’s stock market. Gerardo Rodriguez, senior emerging markets strategist at BlackRock, said: “Investors are increasingly looking to emerging and frontier markets for diversification in their global portfolios. As the largest economy and equity market in the Middle East, Saudi Arabia’s recent opening could represent a compelling opportunity for those looking to broaden their exposures.”



S&P DJI unveils comprehensive China index

Sep 28th, 2015 | By
New db x-tracker ETF seeks to capture price differential between China A- and H-shares.

S&P Dow Jones Indices, a leading index provider, has introduced the S&P China 500 Index, covering all Chinese share classes including A-shares and offshore listings. “Despite the short-term challenges impacting the market, Chinese equities remain a key part of long-term investment strategies for many global investors given the size and importance of the Chinese economy and stock market,” said Michael Orzano, Director of Global Equity Indices at S&P Dow Jones Indices. “By introducing the S&P China 500 Index, we are proud to reaffirm our commitment to the Chinese market and to further expand the toolkit of China indices available to global investors.” The index has been licensed to ICBC Credit Suisse Asset Management for ETF development.



Euronext introduces the Euronext BeNe 40 Equal Weight Index

Sep 28th, 2015 | By
PowerShares Source rolls out new euro bond ETF in partnership with PIMCO

Euronext, a leading European exchange operator and index provider, has launched the Euronext BeNe 40 Equal Weight Index, an alternatively weighted index tracking the 40 most traded companies in the BEL 20 and AEX indices. The index is designed to act as the basis for index-linked products such as exchange-traded funds and structured products. Paris-based asset manager Natixis, parent of smart beta ETF specialist Ossiam, has already licensed the index for the creation of structured notes.



Northern Trust’s FlexShares introduces US quality large-cap ETF

Sep 25th, 2015 | By
Northern Trust reduces fees for six FlexShares ETFs

FlexShares, the exchange-traded funds brand of Northern Trust, has introduced the FlexShares US Quality Large Cap Index Fund (QLC), a multi-factor smart beta ETF investing in US large-cap equities that exhibit discernible quality, value and momentum characteristics. The ETF is designed to outperform the broader US large-cap universe through factor tilts that have historically provided excess returns over market-cap weighted indices. “The FlexShares Quality Large Cap Index fund offers targeted exposure to value and momentum factors providing investors with an efficient multi-factor core equity portfolio holding,” said Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group.



UBS launches smart beta factor ETFs

Sep 25th, 2015 | By
UBS introduces gender equality ETF

UBS Global Asset Management, a leading European exchange-traded fund issuer, has rolled out a suite of smart beta equity ETFs that allow investors to target specific factor exposures within the eurozone and the US. “The new UBS factor ETFs complement many portfolios well within the strategic asset allocation and contribute to improved diversification,” said Dag Rodewald, Head of UBS ETFs for Germany and Austria. “They can also be used tactically, as the form of the factor premiums does not remain constant over time. Our range of ETFs on various factors and for two of the world’s most important economic regions provides investors with the greatest possible flexibility.”



Goldman Sachs joins smart beta revolution with launch of “ActiveBeta” ETF

Sep 25th, 2015 | By
Goldman Sachs launches hedge fund strategy ETF

Goldman Sachs Asset Management has made their direct entry into the fast-growing exchange-traded fund space with the launch of the ActiveBeta US Large Cap Equity ETF (GSLC) on the NYSE Arca. The fund is the first in a series of so-called “ActiveBeta” ETFs that will track GSAM’s smart beta indices offering systematic multi-factor exposure to well-established drivers of long-term outperformance. “We are excited to enter the ETF market,” said Tim O’Neill, Global Co-Head of the Investment Management Division, which includes GSAM. “Our approach to ETFs continues our legacy of investment innovation and at a cost that makes them accessible to all investors.”



Reaves Asset Management launches actively managed utilities ETF

Sep 24th, 2015 | By
Utilities ETFs are no safe haven if eurozone crisis escalates

Reaves Asset Management, a New Jersey-based investment company specialising in the coverage of utility and infrastructure companies, has launched its first exchange-traded fund: the actively managed Reaves Utilities ETF (UTES). Listed on Nasdaq, the ETF provides transparent exposure to the lower volatility profile of the US utility sector via active stock selection. “Utilities provide an element of stability in investment portfolios due to their defensive nature, steady earnings, dividend growth, and quarterly dividend payments”, said John Bartlett, co-portfolio manager at Reaves Asset Management.