Archive for September 2015

Source anticpates increased retail demand for ETFs

Sep 24th, 2015 | By
Source poised for increased retail demand for ETFs

Demand for exchange-traded funds in Europe has traditionally come from institutional investors, with retail investors less familiar with the product. But European ETF provider Source is forecasting a significant increase in demand from retail investors as understanding improves. Research conducted by the London-headquartered firm reveals that one in three IFAs expects clients to increase their exposure to ETFs over the next year, compared to one in twenty-five who predict it to fall. “In a poll of more than 100 IFAs in the UK, 14% of them said they do not fully understand ETFs, and 34% said that their clients do not fully understand them,” noted Lee Kranefuss, Chairman of Source.


ProShares launches S&P 500 ex-sector ETFs

Sep 24th, 2015 | By
Lyxor launches nine US equity sector ETFs

ProShares, a US-based provider of specialist exchange-traded funds, has launched a suite of four S&P 500 Ex-Sector ETFs. The ETFs each provide exposure to the S&P 500 minus a particular sector – either energy, financials, technology or health care. “S&P 500 ETFs force you to invest in a sector you might already have a desired level of exposure to or you may want to avoid,” said Michael L. Sapir, co-founder and CEO of ProShares. “Now, for the first time, you can invest in an S&P 500 ETF and leave behind the sector [energy, financials, technology or health care] you don’t want.”


Demand for ESG ETFs surges, reveals MSCI

Sep 22nd, 2015 | By
Goldman Sachs launches active US small-cap ETF

There has been a significant increase in interest in environmental, social and governance (ESG) exposures this year, according to index provider MSCI, with exchange-traded funds linked to such indices seeing a surge in demand. Baer Pettit, Managing Director and Global Head of Products at MSCI, said: “We’re actively addressing the challenges of integrating ESG factors into benchmarks, whether to meet the needs of investors who believe ESG data can enhance investment decisions or those who simply want to align their portfolios with their values.”


SIX Swiss Exchange celebrates 15th anniversary of first ETF listing

Sep 22nd, 2015 | By
SIX Swiss Exchange marks 15 year ETF listing milestone

The SIX Swiss Exchange has reached the 15-year milestone of hosting exchange-traded funds, having listed its first ETF back in September 2000. Commenting on the landmark, Alain Picard, Head Product Management at SIX Swiss Exchange, said: “We are proud of reaching this milestone, and we would like to thank our clients and partners for the good collaboration”. The success of exchange’s ETF segment is reflected across a range of data points, including trading turnover, the number of issuers and individual products, the range of authorised participants and market makers, the breadth of asset classes available and assets under management.


China “not all doom and gloom”, says Source

Sep 21st, 2015 | By
One AM launches small-cap China A shares ETF

China played no small role in August’s equity market sell off, but, according to a new report from European ETF provider Source, there are a number of positives to the country that may be being overlooked. “China is now one of the largest economies in the world, and its spending power helped drag the western world out of recession following the financial crisis. This appears to have come at a price, however, and the fallout is being felt not only in China but throughout capital markets worldwide. That said, as we looked more deeply into the data, we discovered that it was not all doom and gloom,” said Paul Jackson, Head of Source’s Multi-Asset Research.


MSCI expands Shariah-compliant index range

Sep 21st, 2015 | By
HSBC launches Europe’s first Shariah-compliant Sukuk bond ETF

MSCI, a leading provider of indices, has added to their Shariah-compliant index range with the launch of the Islamic M-Series Indices. “We have expanded the existing MSCI Islamic Index Family with the launch of the M-Series that addresses client demand for financial screening criteria based on market capitalisation,” said Rob Ansari, Executive Director and Head of Client Coverage at MSCI in the Middle East. “We are committed to developing relevant tools for Middle East investors.”


S&P Dow Jones launches climate change indices

Sep 21st, 2015 | By
SparkChange, HANetf partner on world's first physcially backed EUA ETP

As ETF assets tracking environmental, social and governance (ESG) exposures continue to grow, S&P Dow Jones Indices (S&P DJI), one of the world’s leading index providers, has announced the launch of three new climate change indices. “Many investors are trying to facilitate the transition to a low-carbon economy by financing projects in the renewable energy sector, avoiding high-carbon producing companies or minimising their exposure to fossil fuel companies. The three new S&P DJI indices are designed to provide alternative performance narratives to standard benchmarks, being comprised of those companies meeting the strict fossil fuel and carbon efficient standards set within each index series,” said Julia Kochetygova, Head of Sustainability Indices at S&P Dow Jones Indices.


Direxion unveils short and leveraged cyber security and pharmaceutical ETFs

Sep 18th, 2015 | By
ETFs profit as global markets rebound in April

Direxion Investments, a US-based provider of short and leveraged exchange-traded funds, has launched two pairs of ETFs which seek to deliver 2x long and 2x inverse exposure to the cyber security and pharmaceutical industries. “Traders and investors continue to express keen interest in the cyber security and pharmaceutical sectors,” said Sylvia Jablonski, Managing Director at Direxion. “Our new leveraged ETFs enable traders to benefit from exposure to these industries, regardless of market conditions and sector performance, in a flexible way.”


Oppenheimer moves into smart beta ETFs with RevenueShares acquisition

Sep 18th, 2015 | By
Oppenheimer makes move into smart beta with RevenueShares acquisition

Oppenheimer Funds, the global asset manager, has made a move into the growing smart beta space with the announcement of an agreement to acquire VTL Associates, known for its RevenueShares range of exchange-traded funds. “Investors are looking to active managers for innovative solutions to add to their overall investment strategy, including products that are designed to deliver better-than-market returns with full transparency of their investment process,” said Art Steinmetz, Chairman, President and CEO of Oppenheimer Funds.


Volatility drives demand for short and leveraged ETPs

Sep 18th, 2015 | By
Asia Pacific ex-Japan ETF AUM at $132bn at the end of September

Short and leveraged exchange-traded products (S&L ETPs) saw significant inflows during August as market volatility drove demand for short-term trading and risk-hedging tools sharply higher. S&L ETPs saw $7.5bn of net inflows during the month, equating to 36% of the total $20.8bn of ETF/ETP assets gathered globally. “These products are becoming increasingly popular across Europe, particularly amongst the short-term investor community. This increase is in line with the sharp volatility increase experienced at the end of August, where the volume traded in these instruments surged to reach record highs,” said Alexandre Houpert, Head of Cross Asset Retail Distribution, Europe, at Societe Generale.