Archive for 2015
Dec 9th, 2015 |
By John Maher, CFA
S&P Dow Jones Indices (S&P DJI), a leading global index provider, has summarised some of the key exchange-traded fund trends in Asian financial markets in 2015, and provided an outlook for 2016. This year saw inverse and leveraged ETFs become popular investment concepts, particularly in Asia. This reflects the changing market dynamics, especially the investment preference and risk appetite among Asian investors. S&P DJI expects currency fluctuations to be a major theme in 2016 and, as such, currency-hedged ETFs should continue to be favoured by global investors with wider adoption especially in Europe and Japan.
Posted in ETF and Index News |
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Tags: Asia Pacific, China, Currencies, Emerging and Frontier, Equities, ETF and Index News, Europe, Leveraged and Inverse ETFs, S&P Dow Jones
Dec 9th, 2015 |
By John Maher, CFA
FTSE Russell, a global index provider, has announced changes to the constituents and methodology of the FTSE4Good indices following a semi-annual review of the index series. The December semi-annual review sees 40 companies being added to the FTSE4Good Global Index, while 32 are removed. This reflects the impact of FTSE Russell’s new environmental, social and governance (ESG) ratings methodology. Most notable has been the news that Volkswagen AG will be suspended from the indices. The company is deemed to have misled government agencies and consumers over vehicle emissions through the application of software designed to circumvent test requirements.
Posted in ETF and Index News |
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Tags: Equities, ETF and Index News, FTSE, Global, Smart Beta, United Kingdom
Dec 9th, 2015 |
By James Lord, CFA
Standard Bank, one of Africa’s largest banks by assets and earnings, has announced the launch of the continent’s first exchange-traded fund to track movements in the US dollar spot price of rhodium. The AfricaRhodium ETF, listed on the Johannesburg Stock Exchange, complements an existing suite of platinum group metal (PGM) ETFs which now offers local investors a more rounded exposure to the PGM industry, of which South Africa is a global leader.
Posted in Commodities |
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Tags: Commodities, ETF and Index News, ETF Industry News, ETF Launch, ETNs and ETCs, Gold and Precious Metals, Volatility
Dec 9th, 2015 |
By James Lord, CFA
Markit, the firm behind the iBoxx range of indices, has announced the launch of a rules-based framework designed for the creation of systematic factor-based – or “smart beta” – fixed income indices. Ibrahim Kara, Director and Head of Index Research at Markit, commented: “[The] framework enables us to build indices based on internal and external factor models, while ensuring the replicability of the index. This new offering complements our traditional market value-weighted and liquidity focused indices.” More than $80bn in ETF assets are linked to iBoxx indices, of which more than $4bn is linked to alternatively weighted iBoxx indices.
Posted in Fixed Income |
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Tags: ETF and Index News, ETF Industry News, Europe, Fixed Income, Global, Markit, Smart Beta, United States and Canada
Dec 9th, 2015 |
By James Lord, CFA
Vanguard Investments Canada, the Toronto outpost of exchange-traded funds giant Vanguard, has launched two new ETFs on the Toronto Stock Exchange: the Vanguard FTSE Developed All Cap ex North America Index ETF (VIU) and a CAD-hedged version Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-hedged) (VI). Atul Tiwari, managing director of Vanguard Investments Canada, said: “We believe an all-cap approach moves investors closer to complete global market-cap weightings and fuller diversification benefits. Such diversified exposure, at a low-cost, can help investors manage investment risk, enabling them to better weather market swings.”
Posted in Equities |
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Tags: Currency-hedged, Equities, ETF and Index News, ETF Industry News, ETF Launch, Global, United States and Canada, Vanguard
Dec 8th, 2015 |
By James Lord, CFA
Gold ETPs experienced major outflows to the tune of $58.6m last week. The ETFS Gold ETP ended the week down 0.8% but made significant gains during Friday trading on the back of underwhelming policy moves by the European Central Bank (ECB), a depreciating dollar, and a strong US payroll report which increased expectations for a rate hike by the Federal Reserve in December. The day’s rally highlights that further movements in the price of the yellow metal may be possible in the lead up to the Federal Open Market Committee meeting on 16 December.
Posted in Commodities |
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Tags: Commodities, Currencies, ETF and Index News, ETF Industry News, ETF Securities, ETNs and ETCs, Europe, Gold and Precious Metals, United States and Canada
Dec 8th, 2015 |
By John Maher, CFA
FTSE Russell, a global index provider, has launched a series of multi-factor smart beta indices which track a core allocation to US equities with a range of factor tilts designed to capture improved risk-adjusted returns. The rules-based design as these indices makes them an ideal candidate as the basis for index-tracking products such as exchange-traded funds. The indices are based on the constituents of the US large-cap Russell 1000 Index and are available with either a dividend yield, low volatility or momentum factor tilt. The range is designed to meet the objectives of different investor types whether that be the need for income, reducing the variability of a portfolio or chasing after enhanced returns.
Posted in ETF and Index News |
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Tags: Equities, ETF and Index News, FTSE, High Yield, Russell Indexes, Smart Beta, Themes and Strategy, Volatility
Dec 8th, 2015 |
By John Maher, CFA
Euronext, a leading eurozone exchange, has announced a major change in the methodology used for its Low Carbon 100 Europe Index, sharpening the traditional approach to assessing companies’ CO2 emissions. Anthony Attia, Chairman and CEO of Euronext Paris, said: “As market operator, Euronext has an important role to play in channeling savings and investment into energy transition. This new methodology confirms our commitment to offering investors an increasingly relevant standard for portfolio management, and an underlying asset suitable for different index-linked products.”
Posted in ETF and Index News |
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Tags: Equities, ESG & Climate, ETF and Index News, Europe, Themes and Strategy
Dec 8th, 2015 |
By James Lord, CFA
SGX Index Edge, the newly launched index division of the Singapore Stock Exchange (SGX), has introduced 11 new equity indices targeting sector-specific exposure within the Singapore economy. The new additions are part of SGX’s Thematic Indices, a project aimed at increasing transparency in the Asia-Pacific region, and the building blocks for investable products such as exchange-traded funds.
Posted in ETF and Index News |
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Tags: Asia Pacific, Equities, ETF and Index News, ETF Industry News, ETF Launch, Real Estate
Dec 8th, 2015 |
By James Lord, CFA
Source, a leading European provider of exchange-traded funds, has released research indicating that the cost benefits enjoyed by investors adopting exposure to leading equity indices through ETFs is potentially at record high levels when compared to using futures contracts. Previously, investors could capture an average annual benefit of 18 basis points (bp) on certain indices but the Source analysis now suggests the potential benefit could be between 30 and 50bp.
Posted in ETF and Index News |
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Tags: Equities, ETF and Index News, ETF Industry News, Europe, FTSE, S&P Dow Jones, Source, STOXX, United Kingdom, United States and Canada