Archive for December 2015

Guggenheim launches smart beta yield-weighted Dow Jones ETF

Dec 17th, 2015 | By
Guggenheim changes name of actively managed $1bn enhanced short duration ETF

Guggenheim Investments, a US-based provider of exchange-traded funds, has announced the launch of the smart beta Guggenheim Dow Jones Industrial Average Dividend ETF (DJD). “DJD will track the DJIA Yield Weighted index, which is calculated using a yield-weighted methodology that weights all securities of the DJIA by their 12-month dividend yield,” said William Belden, Guggenheim Investments Managing Director and Head of ETF Business Development. Guggenheim was among the early pioneers of smart beta ETFs with the introduction of the Guggenheim S&P 500 Equal Weight ETF (RSP) in 2003.


Bloomberg to acquire Barclays’ fixed income indices

Dec 17th, 2015 | By
Bloomberg to acquire Barclays indices

Bloomberg, a leading financial data provider, has agreed to buy Barclays’ fixed income indexing and risk analytics business in a deal worth approximately £520m. The acquisition positions Bloomberg as a major index player in the fast-growing exchange-traded funds industry. Deborah Fuhr, Managing Partner at ETFGI, an independent research and consulting firm, said: “Bloomberg’s announced acquisition of Barclays’ index business is significant news as Barclays is the dominant provider of fixed income indices. Based on findings in our end of November report, Barclays is currently the fourth largest provider of indices used by ETFs/ETPs listed globally ranked by assets invested in the products.”


SSGA presents possible ETF solutions for navigating Fed rate hike

Dec 17th, 2015 | By
SPDR’s US-listed S&P 500 ETF hits $200 billion record milestone

Dave Mazza, Head of Research for SPDR exchange-traded funds at State Street Global Advisors (SSGA), offers insight into the likely implications of the first interest rate hike in the US for nine years. His note explains the uncertainty surrounding the market’s reaction, the possible path for interest rate movements next year, and how investors may use ETFs to benefit from the move off zero.


Goldman Sachs looks set to launch ESG-based S&P 500 ETF

Dec 17th, 2015 | By
Ossiam launches quant-driven global ESG ETF

Goldman Sachs Asset Management (GSAM), the asset management arm of the global investment bank, has plans to add to their growing lineup of smart beta exchange-traded funds with the launch of a new environmental and social responsibility-based ETF, according to a filing made with the US Securities and Exchange Commission. The Goldman Sachs S&P 500 Environmental & Socially Responsible ETF is expected to track an index of companies meeting environmental and socially responsible investing criteria while maintaining a risk and performance profile similar to the underlying reference, the S&P 500 Index.


ESG ETFs gain traction as responsible investing comes of age

Dec 17th, 2015 | By
Bloomberg and MSCI launch ESG fixed income index suite for Canadian investors

Julia Kochetygova, Head of Sustainability Indices at S&P Dow Jones Indices, a leading index provider to the exchange-traded fund industry, has compiled a note reflecting on the growing prominence of environmental, social and corporate governance (ESG) investment themes during 2015. Over the course of the year, the ETF industry has kept up with the times as evidenced through increased launches of funds tailored towards the ESG conscious investor.


LSE strengthens ETF data analytics platform with acquisition of XTF

Dec 16th, 2015 | By
FTSE introduces new GDP weighted China index

London Stock Exchange Group (LSEG) has announced the acquisition of XTF, a US-based provider of analytics and ratings which focuses on the exchange-traded fund industry. The integration of XTF’s assets into LSEG’s Information Services Division strengthens the firm’s data and analytics business within the fast-growing ETF industry which now surpasses over $3tn in globally managed assets.


SSGA launch North American Natural Resources ETF

Dec 16th, 2015 | By
SSGA roll out two SPDR DoubleLine fixed income ETFs

State Street Global Advisors (SSGA), the asset manager behind the SPDR range of exchange-traded funds, has launched a new fund tracking equity exposure of US and Canadian companies operating in the natural resources sector. The SPDR S&P North American Natural Resources ETF (NYSE Arca: NANR) offers enhanced diversification compared to traditional natural resources ETFs through targeted weightings of the energy (45%), materials (35%) and agriculture (20%) sub-sectors.


Deutsche AWM unveils smart beta bond ETF

Dec 16th, 2015 | By
First Trust rolls out European smart beta ETFs to Swiss Exchange

Deutsche Asset & Wealth Management (Deutsche AWM), the asset manager behind the db x-trackers range of exchange-traded funds, has launched a quality-weighted eurozone sovereign bond ETF, marking its entry into the fixed income smart beta market. “The aim of this ETF is to provide a straightforward method of acquiring quality-focused sovereign bond exposure, and to provide investors with the potential for an improved risk versus return profile,” said Martin Weithofer, Deutsche AWM’s head of strategic beta. “The quality weighted index provides similar returns to the traditional index but with potentially lower volatility and a smaller maximum peak-to-trough decline.”


BlackRock expands iShares FactorSelect smart beta suite with emerging markets ETF

Dec 16th, 2015 | By
BlackRock goes global for third synthetic equity ETF

BlackRock, the parent of the exchange-traded funds giant iShares, has expanded its iShares FactorSelect ETF product suite with the introduction of an emerging markets-focused smart beta ETF. “The iShares FactorSelect ETF suite enables investors to seek the potential performance and diversification benefits offered by four well known investment factors in an easy and cost efficient way. With the launch of EMGF we have rounded out the suite, giving US investors the added flexibility to choose multi-factor exposures across domestic, international and/or emerging markets,” said Robert Nestor, Managing Director and Head of iShares Smart Beta Strategy at BlackRock.


Nordic equity ETFs offer a quality bet on European recovery

Dec 16th, 2015 | By
DWS adds Nordic equity ETF to Paris-aligned suite

Although their economies are relatively small when compared to the size of European powerhouses such as Germany, France and the United Kingdom, exchange-traded funds with targeted exposure to the Nordic region (especially Sweden, Denmark and Norway) may provide significant benefits to investors looking to exploit a potential European recovery. Strong macro-economic fundamentals coupled with a greater degree of insulation from the financial complications of the eurozone structure, make Nordic ETFs an attractive proposition.