Deutsche Börse has launched a new service which allows for an optimized on-exchange execution of large-sized ETF orders. Called Xetra Quote Request, the service exploits the exchange group’s complete service chain – from trading, clearing and settlement to trade reporting and market data dissemination – to reduce settlement and counterparty risks and ensure compliance with best execution requirements for large orders. Martin Reck, Managing Director, Cash Market, at Deutsche Börse, said the initiative would improve the efficiency of on-exchange trading in ETFs.

When the Retail Distribution Review (RDR) came into force at the beginning of 2013 the exchange traded fund market expected to see a surge in uptake, but advisers were hesitant to use ETFs despite their low cost and liquid nature. That was until recently. Increasingly, there are signs that advisers are beginning to embrace ETFs through direct allocation and via outsourced model portfolios, and many market watchers believe their use is set to boom. If this is to happen, the role of adviser platforms will be key.

The latest YouGov poll on the EU Referendum has found the race continues to be hard fought and tightly won with 40% of voters electing to stay “in”, 39% wanting “out” of Europe and 16% remaining undecided on which way they should vote. In the run up to 23rd June’s so-called “Brexit” vote most polls suggest Britons will remain in the EU – propelled by David Cameron’s acquiring of the UK’s “special status”. However, while ongoing uncertainty could also spell further weakness for Sterling – the GBP versus Euro has slipped nearly 6% since the start of the year from €1.35 to €1.27 today [19th April] – there could be opportunities in currency-hedged UK equity ETFs.

Sphere Investments, a Canadian exchange-traded funds provider, has launched the Sphere FTSE US Sustainable Yield Index ETF (SHU) on the Toronto Stock Exchange. The ETF will track the performance of the FTSE USA Sustainable Yield 150 10% Capped 100% Hedge CAD Index. The index is a reference for the equity performance of 150 US large cap companies that have been screened for relatively high and sustainable dividend yields. Individual company exposure is capped at 10%.

Canada-based Mackenzie Financial Corporation (Mackenzie Investments) has entered the exchange-traded fund space with the launch of four active fixed income ETFs on the Toronto Stock Exchange today. The ETFs are launched in a bid to help investors build their portfolios and are; the Mackenzie Core Plus Global Fixed Income ETF (TSX:MGB), the Mackenzie Unconstrained Bond ETF (TSX:MUB), the Mackenzie Floating Rate Income ETF (TSX:MFT) and the Mackenzie Core Plus Canadian Fixed Income ETF (TSX:MKB). While each ETF uses a different approach to generate stable risk-adjusted returns for investors in the fixed income markets, the layer of active management means investors benefit from the fund management expertise at Mackenzie Investments.

S&P Dow Jones Indices has partnered with sustainable investing specialist RobecoSAM to launch a new index family targeting positive environmental, social and corporate governance exposures on a global and regional scale. The S&P ESG Index Series is based on existing S&P Indices. The indices measure the performance of companies in their respective underlying index with a weighting scheme based on ESG factor scores derived from RobecoSAM’s annual Corporate Sustainability Assessment. Banerjee, Managing Director, Head of Product Management at SPDJI, said in a statement: “Sustainability issues can be sources of substantial risks but equally, substantial opportunities.”

JP Morgan Asset Management has announced it has taken a minority stake in exchange-traded fund provider Global X Management Company as it looks to expand and deepen its participation in the ETF industry. Jed Laskowitz, Co-Head of Global Investment Management Solutions for JP Morgan Asset Management, commented: “Investing in Global X augments our ETF strategy by expanding and deepening our participation in this fast-growing industry. We will continue to develop the JP Morgan ETF line-up with an eye toward future innovation in active ETFs while building this strategic partnership.”

Van Eck, the asset manager behind the Market Vectors range of exchange-traded funds, is to launch two new ETFs on the Australia Stock Exchange that will provide local investors with exposure to global infrastructure securities and high dividend stocks that are not subject to double taxation under Australian law. The VanEck Vectors FTSE Global Infrastructure (Hedged) ETF (IFRA) will be the first Australian ETF to give investors access to global infrastructure securities while the VanEck Vectors S&P/ASX Franked Dividend ETF (FDIV) will also be an Australian first as it will be the only ETF to include companies within the S&P/ASX 200 that have paid out 100% franked dividends in the past two years. Arian Neiron, Managing Director, VanEck Australia, commented in a statement: “We are delighted to shortly be launching these two first of their kind ETFs. The new ETFs have been created in response to increasing demand from Australian advisers and investors for greater choice, flexibility, transparency and cost-effectiveness when investing.”

First Trust, a US-based provider of exchange-traded funds, has launched three new ETFs on the Nasdaq Exchange. The First Trust RiverFront Dynamic Europe ETF (RFEU), First Trust RiverFront Dynamic Asia Pacific ETF (RFAP), and First Trust RiverFront Dynamic Developed International ETF (RFDI) are all managed by asset manager RiverFront Investment Group. Chris Konstantinos, RiverFront’s Director of International Portfolio Management, commented: “We believe stocks across the developed world have pulled back to attractive valuations and that investors have underestimated the positive impact that lower oil prices and continued aggressive monetary policy will have on developed international economies.”

The US Federal Reserve has made a policy mistake by failing to further raise interest rates thus far in 2016, according to ETF Securities. According to the firm’s latest tri-annual outlook report, ETF Securities believes the Fed’s reluctance to move too far from other central bank policies, despite increasingly stronger domestic fundamentals, is feeding further volatility into the market. James Butterfill, Head of Research and Investment Strategy at ETF Securities, noted: “The risk of waiting too long to raise rates is greater uncertainty. Such a situation seems circular, with markets fretting over Fed decisions and the Fed concerning themselves with market volatility – an issue outside the scope of its mandate.”