The “robo-advisor” space continues to gather steam, with Sydney-based BetaSmartz becoming the latest start-up to emerge from this exciting area of FinTech. Aimed at Australian investors, BetaSmartz’s technology utilises a wide universe of low-cost exchange-traded funds (ETFs) and actively managed funds to create portfolios that aim to equal the performance and sophistication of those in use at global fund managers, on a platform flexible, scalable and efficient enough to suit institutions, adviser groups and individuals. John James, Founder and CEO of BetaSmartz, said: “Robo-advice is a buzzword right now, but basically it’s the application of technology to what is otherwise a manual, inefficient process.”

BetaShares, a leading Australian provider of exchange-traded funds, has reported that the Australian ETF industry attracted $104m in net inflows in January despite global instability wiping more than $1bn off the value of locally-listed ETFs. Alex Vynokur, BetaShares’ Managing Director, commented: “This year kicked off with a shaky start for global share markets. Amid this volatility, the exchange-traded fund industry continued to receive positive inflows. It is testimony to the increased depth of products now available in the Australian ETF industry that even in heavily declining markets, investors now have opportunities to protect portfolios during the turmoil.”

Flexible Plan Investments (FPI), a US-based active management firm, has unveiled a smart beta ETF investment strategy, which builds portfolios of smart beta ETFs aimed at enhancing returns. The strategy, entitled Brighter Beta, uses a set of quantified rules, proprietary software, and extensive research to build the portfolios. The portfolios aim to enhance returns through capturing market inefficiencies as well as tactically positioning the portfolio ahead of directional moves in the market. The rising popularity of smart beta investing has resulted in the launches of over 500 individual factor-based ETFs, which now comprise Brighter Beta’s investable universe. The methodology dynamically weights chosen ETFs to maximise portfolio performance ahead of predicted market movements.

January net inflows into exchange traded products hit $13.9bn globally, beating the same month last year, according to BlackRock’s January ETP Landscape Report. The report, which looks at monthly ETP flows across a range of geographies and asset classes, showed that investors were turning to safe haven assets amid uncertain market conditions. Notably, ETPs tracking US Treasuries were particularly in demand, netting $9.1bn in new assets, the third highest monthly inflow in the last five years. This was in sharp contrast to US equity-based ETPs which saw a significant reversal in demand month-on-month.

While market volatility will continue to fuel the growing popularity of multi-factor smart beta strategies in 2016, there will be greater focus on diversification than trying to predict which factor will dominate, according to asset management research firm Cerulli. “Over the past year as market uncertainty has reigned, multi-factor smart beta strategies have garnered greater interest. We expect total assets under management to continue to increase not only in Europe but in the US and Asia as well,” said Justina Deveikyte, a senior analyst at Cerulli.

UBS Asset Management has unveiled an exchange-traded fund providing investors with access to emerging markets sovereign debt. Listed on the London Stock Exchange, the UBS ETF (LU) Barclays USD Emerging Markets Sovereign UCITS ETF delivers exposure to sovereign and quasi-sovereign bonds from more than 60 emerging markets countries. Commenting on the launch, Andrew Walsh, Head of UBS ETF Sales for UK & Ireland, said: “The addition of the UBS Barclays USD Emerging Markets Sovereign UCITS ETF continues our expansion in the fixed income space and offers our clients a simple way to access USD-denominated government debt issued by emerging economies with competitive pricing.”

ETF Securities, one of the world’s leading providers of commodities-based exchange-traded products (ETPs), has announced record year-to-date net inflows of over $1 billion since 1 January 2016. Highlights include $720 million into gold-linked ETPs and over $320 million into oil-linked ETPs. On Tuesday 9th February, the firm saw its highest ever one day net inflow, of $345 million into its gold-linked ETPs. ETF Securities’ physical gold ETPs include the $4 billion ETFS Physical Gold (PHAU) and $2.8 billion Gold Bullion Securities (GBS). In the oil space, ETF Securities’ largest products are the ETFS WTI Crude Oil (CRUD) and ETFS Brent 1mth (OILB), with assets of $623 million and $276 million respectively.

Guggenheim Investments, a US-based provider of exchange-traded funds, has introduced the Guggenheim Total Return Bond ETF (NYSE Arca: GTO). The fund is actively managed, investing primarily in investment-grade fixed income securities across multiple sectors. Scott Minerd, Chairman of Investments and Global CIO for Guggenheim Investments, commented: “Our investment team’s rigorous and specialized credit analysis work to uncover attractive duration and yield in otherwise underappreciated asset classes, such as commercial asset-backed securities and collateral loan obligations.”

ETF Securities, a leading provider of exchange-traded funds, has reported that recent indicators of consumer sentiment have been standing in stark contrast to those of investor sentiment. The London-based firm argues that increasing strength in the consumer space has the potential to bring stability to current volatility in asset markets, through the reinforcement of strong fundamentals. This in turn could be positive for the British Pound, which has historically had a strong inverse correlation with volatility.

Canadian institutional investors and asset managers are increasingly using exchange-traded funds for strategic allocations, as found by a recent study conducted by Greenwich Associates, a firm specialising in researching the financial industry. The third annual study into Canadian ETF usage commissioned by asset manager BlackRock, discovered that participating institutions and asset managers hold over 21% and 25% respectively of total assets in ETFs. While institutional acceptance of ETFs has exploded in recent years, today the ‘how’ of ETF use has become just as important as the ‘how much.