Archive for 2015

Outlook rosy for currency-hedged and short & leveraged ETFs in Asia, says S&P Dow Jones

Dec 9th, 2015 | By
Samsung launches Hong Kong's first REIT ETF

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.


FTSE4Good index review sees constituent shake up; Volkswagen suspended

Dec 9th, 2015 | By
FTSE4Good index ESG review sees constituent shake up, Volkswagen suspended

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.


Africa’s capital markets advance with pioneering launch of rhodium ETF on JSE

Dec 9th, 2015 | By
VanEck’s gold miners ETF hits rich vein as assets surge to $700m

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.


Markit to develop smart beta iBoxx indices

Dec 9th, 2015 | By
Newfleet launches multi-sector unconstrained bond ETF

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.


Vanguard rolls out all-cap developed market ex North America ETFs on Toronto Stock Exchange

Dec 9th, 2015 | By
Vanguard rolls out two all-capitalisation developed market ETFs on Toronto Stock Exchange

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.”


Commodities ETP round-up: investors offload gold but seek bargains in energy and copper

Dec 8th, 2015 | By
ETF Securities rolls out new Bloomberg commodity ETFs

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.


FTSE Russell unveils new smart beta indices offering core US equity exposure

Dec 8th, 2015 | By
Bridgeway launches US small-cap value ETF

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.


Euronext improves low carbon index by rewarding sustainable companies

Dec 8th, 2015 | By
Emerge rolls out sustainable multi-manager global equity ETF

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.”


Singapore Exchange targets Asian ETF market with launch of thematic sector indices

Dec 8th, 2015 | By
Singapore Exchange expands investors’ toolkit with 11 sector-focused equity indices

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.


ETFs set to capture historic cost savings over futures, according to Source

Dec 8th, 2015 | By
E*TRADE boosts its ETF lineup by 51%

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.