Archive for November 2015

Smart beta gaining favour with financial advisors, finds FTSE Russell

Nov 12th, 2015 | By
Invesco cuts fees on two PowerShares S&P 500 factor ETFs

FTSE Russell, a global index provider, has released the results of a survey of US financial advisors. The survey identifies increasing adoption of smart beta strategies within client portfolios. The survey targeted 307 financial advisors who were screened to ensure each held a minimum of $20m in assets under management with at least 4% invested through exchange-traded funds. Of those sampled, a combined 89% of respondents expressed interest in using smart beta product. This included 28% of respondents who stated they were ‘very interested’ in such offerings.


Goldman Sachs expands smart beta lineup with international equity ETF

Nov 11th, 2015 | By
Goldman Sachs debuts white-label ETF platform

Goldman Sachs Asset Management (GSAM), the asset management arm of the global investment bank, has added to their growing lineup of smart beta ETFs with the launch of the Goldman Sachs ActiveBeta International Equity ETF (GSIE). The fund employs a multi-factor smart beta approach that weights international equity holdings based on established drivers of performance, namely: value, momentum, quality and low volatility. “The Goldman Sachs ActiveBeta International Equity ETF leverages our broad global expertise to deliver access to slices of international markets in a sophisticated and cost-effective way,” said Michael Crinieri, GSAM’s Global Head of ETF Strategies.


AlphaClone unveils international equity ETF, drawing on ‘best ideas’ from hedge funds

Nov 11th, 2015 | By
Maz Jadallah, CEO of AlphaClone

AlphaClone, the investment advisor behind the innovative AlphaClone Alternative Alpha ETF (ALFA), has launched an ETF tracking their latest equity index of “best ideas” cherry-picked from the portfolios of established hedge fund managers. “Following a similar methodology used inside separately managed accounts since 2010, we’re excited to offer an international ETF to help long-term investors navigate international opportunities,” said Maz Jadallah, CEO of AlphaClone. “Our approach seeks to combine the best of man and machine by leveraging the most established investors while offering a rules-based investment methodology.”


BlackRock cuts fees of iShares Core ETF suite

Nov 11th, 2015 | By
iShares ETFs drive BlackRock’s quarterly earnings higher

BlackRock, the asset manager behind the iShares range of exchange-traded funds, has announced key changes to its US-listed Core ETFs, a suite of diversified, low cost funds designed for investors seeking a buy and hold strategy. The move sees management fees reduced across seven of the range’s ETFs, the launch of the iShares Core International Aggregate Bond ETF (IAGG), as well as a broadening of the benchmark for the iShares Core S&P Total US Stock Market ETF (ITOT), helping to better align investors’ exposure with the true dynamic of the full US equity market.


FlexShares introduces currency-hedged versions of factor-tilting smart beta ETFs

Nov 11th, 2015 | By
Northern Trust reduces fees for six FlexShares ETFs

FlexShares, the exchange-traded fund arm of Northern Trust, has introduced currency-hedged versions of two existing smart beta ETFs. The ETFs provide dollar-hedged exposure to either developed or emerging markets stocks, with the portfolio tilted towards size and value factors. Shundrawn A. Thomas, Head of Northern Trust’s Funds and Managed Accounts Group, commented: “Our research shows that employing a tilted approach to capturing size and value factors potentially adds value to global equity strategies.”


Novia and Winterflood team up to improve ETF access for IFAs

Nov 10th, 2015 | By
Novia Financial and Winterflood innovate wrap platform for greater ETF access

Novia, a leading UK fund platform, has teamed up with Winterflood Business Services, a provider of dealing, custody, and settlement services, to improve access to exchange-traded funds for independent financial advisers (IFAs). The collaboration aims to boost the adoption of ETFs by IFAs by reducing costs and enhancing the trading experience. The lack of efficient access to ETFs on IFA platforms has been a significant impediment to the adoption of ETFs in the retail investor space. The collaboration will facilitate the provision of a greater range of funds to IFAs as well as streamline the functionality when dealing with ETFs on the platform.


BMO enters European ETF market with equity and fixed income range

Nov 10th, 2015 | By
BMO expands line-up with seven new ETFs

BMO Global Asset Management, the fund management division of the Canadian-headquartered bank, has become the latest company to enter the fast growing European ETF space. The firm has launched four global corporate bond ETFs to help investors diversify their exposure to global investment grade corporate bonds and high yield bonds, and five smart beta equity ETFs focused on generating high quality income for investors. “Establishing our ETF offering in Europe is a key strategic milestone for us as we continue to expand across the region,” said Richard Wilson, CEO, BMO Global Asset Management (EMEA).


ETF industry celebrates $3 trillion AUM milestone

Nov 10th, 2015 | By
Demand for low volatility ETFs pushes global smart beta AUM to record high

ETFGI, a London-based exchange-traded fund consultancy, has announced that the global ETF/ETP industry has reached another milestone by growing to over $3tn in assets under management (AUM). The findings were detailed in the firm’s October Global ETF and ETP Insights report and also show that the number of ETFs/ETPs offered worldwide has surpassed 6,000 products. The global ETF/ETP industry now offers 6,015 ETFs/ETPs, through 11,598 listings, from 271 providers listed on 63 exchanges in 51 countries, as of the end of October.


Amundi brings euro liquid corporate bond ETF to market

Nov 10th, 2015 | By
Invesco launches suite of euro government bond ETFs in Europe

Amundi, a leading European provider of exchange-traded funds, has added to its fixed income ETF range by launching an ETF offering exposure to the Markit iBoxx EUR Liquid Corporates BBB Top 60 index. According to Amundi, the fund has been designed as an asset allocation tool for investors seeking to capture yield on euro credit markets, as European issuers still benefit from strong fundamentals and favourable environment with ECB Quantitative Easing.


Commodities ETP round-up: Palladium hit by ongoing emissions scandal

Nov 10th, 2015 | By
ETF Securities Weekly Commodity Round-up – 9 November 2015

ETF Securities, a leading provider of commodity-based exchange-traded products, has released its latest weekly multi-asset research report highlighting trends in commodities markets. The following is a summary of the main moves over the week. A strengthening dollar weighed heavily on ETPs covering gold and energy markets while platinum- and palladium-based products were affected by industry specific events such as financial trouble of major suppliers as well as Volkswagen’s broadening emissions scandal.