Archive for February 2016

ProShares expands ‘dividend growers’ ETF range with emerging markets fund

Feb 9th, 2016 | By
ProShares launches first S&P 500 bond ETF

US-based exchange traded fund provider ProShares has launched the ProShares MSCI Emerging Markets Dividend Growers ETF (BATS: EMDV) further expanding its suite of funds targeting companies with long-term records of consistent dividend increases. The strategy targets sustained dividend growth, which enhances income potential but also indicates financial strength meaning it can avoid lower quality firms. As a long-term strategy there is academic support for dividend investing. According to independent research firm Ned Davis Research, both US and international companies that grew their dividends year-on-year outperformed companies that did not between 1996 and 2015.


Elston Consulting celebrates first year in smart beta sector

Feb 9th, 2016 | By
Elston Consulting celebrate first anniversary of ETF-based smart beta index launches

London-based investment research and advisory firm Elston Consulting has celebrated the one year anniversary since the launch of its two smart beta indexes, reflecting the success of smaller players in the smart beta space.The Elston Strategic Beta Global Maximum Sharpe Index and the Elston Strategic Beta Global Minimum Volatility Index use a risk-based methodology compared to the more commonly used factor-based approach. The dynamic, multi-asset strategies use long-only ETFs and are denominated in British pounds.


Short & leverage ETP AUM finishes year up 13.8%

Feb 9th, 2016 | By
MiFID II transparency requirements to drive ETF use

Global assets under management invested in short & leveraged (S&L) exchange-traded products (ETPs) finished the year up 13.8% at $68.3 billion, according to data from London-based S&L ETP provider Boost ETP. The strong performance was driven by increasing numbers of investors deploying the products to capitalise on short-term market volatility or temporarily hedge long-term portfolio positions. Nick Leung, Research Analyst at WisdomTree Europe, the parent company of Boost ETP, commented: “December capped a record year for short & leveraged ETPs as investors took advantage of persistent volatility to position opportunistically or hedge their exposures.”


iShares seeks to promote ETF awareness via educational video series

Feb 8th, 2016 | By
iShares seeks to enhance ETF awareness through animated educational series

iShares, the exchange-traded funds division of asset manager BlackRock, has released a series of animated educational videos aimed at promoting greater knowledge of ETFs among investors and financial advisors. Jennifer Grancio, Managing Director, BlackRock commented: “For BlackRock, education will continue to be a key focus for us as we work to help all types of investors feel confident using ETFs for their investment goals.”


ETFs/ETPs pull in $13.1 billion despite market turbulence

Feb 8th, 2016 | By
BlackRock’s iShares Core S&P 500 ETF powers through $200bn milestone

Despite testing market conditions, the global ETF/ETP industry pulled in net inflows of $13.1 billion in January 2016, according to preliminary data from industry consultants ETFGI. The industry has now totted up an impressive 24 consecutive months of net inflows. Fixed income was the best performing ETF category in January, gathering net inflows of $12.5bn, followed by commodities with $3.4bn. Equity ETFs/ETPs experienced the largest net outflows, with $8.5bn being withdrawn from such products. At the issuer level, Nomura AM gathered the largest net inflows in January with $4.2bn, followed by Vanguard and VelocityShares.


RBC Global rolls out fixed income and smart beta equity ETFs

Feb 8th, 2016 | By
RBC Global introduces five new income-oriented ETFs

RBC Global Asset Management (RBC GAM), a division of the Royal Bank of Canada, has launched a suite of exchange-traded funds offering international exposure to global companies. Three of the four new ETFs are factor based funds with screens across dividends, quality and value, while the remaining ETF invests in short duration, investment grade, corporate and government securities. All funds are listed on the Toronto Stock Exchange and the new additions bring the total number of ETFs issued by RBC Global to 24. Fees range from 0.22% and 0.64%.


Oppenheimer enters smart beta space with revenue-weighted ETFs

Feb 8th, 2016 | By
Oppenheimer Funds enters smart beta space with range of revenue-weighted equity ETFs

Oppenheimer Funds, a leading global asset manager, has entered the smart beta exchange-traded funds space with the launch of eight new ETFs. All the funds are revenue-weighted and come in direct response to client demand, who want an ETF with the benefits of an active strategy. In December, the firm completed its acquisition of VTL Associates, known for its RevenueShares range of ETFs. It has subsequently re-branded the suite of products, which offers global and regional equity exposures while weighting constituents based on their top line revenue. A revenue-weighted approach may contain benefits over alternative weighting schemes.


Solactive launches first smart beta low carbon equity indices

Feb 8th, 2016 | By
Steffen Scheuble, CEO of Solactive

Niche index provider Solactive, has unveiled a range of climate-themed investment strategies with the launch of the Solactive SPG Low Carbon Index Family, which includes a first of its kind smart beta tranche. The six indices have been created in collaboration with South Pole Group, a specialist in helping companies reduce greenhouse gas emissions, and utilise a screening process to exclude companies with relatively unfavourable carbon emission record. The indices have been produced with European-, eurozone-, or US-focused exposure. Each index is supplemented with an alternatively-weighted version, which assigns a greater importance to firms with higher dividends and lower volatility.


Aequitas NEO to list first ETF on exchange in March

Feb 8th, 2016 | By
Newcomer Aequitas NEO confirms PowerShares as first ETF issuer to list on its exchange

Aequitas NEO, a Canada-based start-up stock exchange, has announced the first exchange-traded fund to list on its platform will be from the PowerShares division of Invesco Canada. The PowerShares Dorsey Wright Associates (PDWA) Global Momentum Index ETF is due to begin trading in early March subject to the approval of regulatory authorities. In a bid to attract corporate clients Aequitas NEO offers competitive listing fees that currently undercut those offered by the Toronto Stock Exchange. The firm also touts a variety of benefits including a robust system ensuring reliable liquidity and free real-time market data to enhance visibility.


ETF assets peak at $2.2tn in 2015 as mutual fund assets decline, reports Broadridge

Feb 8th, 2016 | By
Asia Pacific ex-Japan ETF AUM at $132bn at the end of September

Broadridge Financial Solutions, a London-based provider of financial market analysis, has released its quarterly ‘fund distribution intelligence’ report, which found that the exchange traded fund industry reached a peak of $2.2tn last year. The report looks at the flows and asset performance of long-term mutual funds and exchange-traded funds. The funds make up more than $9tn of assets and are from a variety of providers. The research showed that the mutual fund industry experienced a decrease of $161bn in its global asset base during 2015 to $7.3tn, while assets in ETFs increased.