Archive for May 2016
May 18th, 2016 |
By James Lord, CFA
Broadridge Financial Solutions has announced that China Post Global, the international asset management arm of the Chinese postal savings bank, has joined Broadridge’s integrated trading and portfolio management platform for its Market Access ETFs. Bennett Egeth, President of Broadridge Investment Management Solutions, commented: “Broadridge is very proud to be working with an innovative Asian provider like China Post Global to address this tremendous opportunity by providing efficient, scalable and future-proof portfolio management solutions.”
Posted in ETF and Index News |
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Tags: Asia Pacific, China, China Post Global / Market Access, Commodities, Emerging and Frontier, Equities, ETF and Index News, ETF Industry News, ETF Launch, ETNs and ETCs
May 18th, 2016 |
By Rebecca Hampson
Financial advisers and discretionary wealth managers in the UK are as likely to buy exchange traded funds and exchange traded products as traditional UCITS products over the next 12 months, according to a new study from ETF provider Source. Approximately one fifth (22%) of respondents said they are planning to purchase more traditional UCITS funds in future while 17% said more ETFs/ ETPs. Of financial advisers and discretionary wealth managers that invest in ETPs for clients, the vast majority (83%) said they had done so for more than three years. While – on average – 13% of firms surveyed had AUM in ETFs/ ETPs.
Posted in ETF and Index News |
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Tags: Commodities, Equities, ETF and Index News, ETF Industry News, ETF Launch, Fixed Income, Smart Beta, Source, Themes and Strategy, United Kingdom
May 18th, 2016 |
By James Lord, CFA
Smart beta exchange-traded fund assets will reach $1tn globally by 2020 and $2.4tn by 2025, according to a recent report by BlackRock’s iShares. With current smart beta ETF assets at $282bn (Bloomberg 31 March 2016), the provider’s projections reflect an annual organic growth rate of 19%, double the growth rate of the overall ETF market. Martin Small, BlackRock’s Head of US iShares, commented in a statement: “Smart beta ETFs are growing increasingly popular, as evidenced by their record flows in 2015 and the first quarter of 2016 with investors using them to manage risk and obtain precise exposure to historically return driving factors.”
Posted in Equities |
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Tags: Equities, ETF and Index News, ETF Industry News, ETF Launch, iShares, Smart Beta, Themes and Strategy, United States and Canada
May 18th, 2016 |
By James Lord, CFA
Germany-based index provider Solactive, and BlueStar Global Investments, a research-focused firm specialising in the Israeli capital markets, have together launched BlueStar Israel Economic Exposure Indexes. The two indexes reflect the division in the Israeli economy between globally-orientated firms and companies primarily focused on serving the domestic economy. Both indexes have been designed to form the basis for future investment products such as exchange-traded funds. The Solactive-BlueStar Israel Domestic Exposure Index and Solactive-BlueStar Israel Global Exposure Index provide investors with two distinct benchmarks for Israeli equities. They may be used as indicators of Israel’s economic cycles and specific economic trends, as well as vehicles to track the potential risk of geopolitical events in the volatile Middle East.
Posted in ETF and Index News |
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Tags: Equities, ETF and Index News, ETF Industry News, ETF Launch, Solactive, Themes and Strategy
May 17th, 2016 |
By Rebecca Hampson
In Part 1 of this series we looked at Japanese equities with a positive growth story, specifically Abenomics, how the BoJ has influenced ETF buying in Japan and ways to invest in the increased corporate governance of companies in Japan. In this article we will look at Yen weakening and whether there is still a need to hedge when getting exposure to the region. Not everyone has a positive view on Japan. Those who believe global growth will continue and the Yen will weaken can get exposure through companies in Japan where a large part of their exposure comes from foreign revenue.
Posted in Equities |
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Tags: Asia Pacific, Currencies, Emerging and Frontier, Equities, ETF and Index News, ETF Industry News, iShares, Lyxor, Smart Beta, WisdomTree
May 17th, 2016 |
By James Lord, CFA
JP Morgan Asset Management has launched a smart beta US mid cap equity exchange-traded fund on NYSE Arca, bringing its total smart beta diversified return equity ETF offering to eight. The JPMorgan Diversified Return US Mid Cap Equity ETF (JPME) targets the US mid cap equity market through a multi-factor investment process. The ETF attempts to address the flaws of traditional indexing by weighting constituents according to proven drivers of return such as value, quality and momentum. Robert Deutsch, Global Head of ETFs for JP Morgan Asset Management, said: “JPME helps to diversify risk more evenly across the portfolio, in an effort to reduce exposure to volatile sectors and securities.”
Posted in Equities |
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Tags: ETF and Index News, ETF Industry News, ETF Launch, FTSE, JP Morgan, Russell Indexes, Smart Beta, Themes and Strategy, United States and Canada
May 17th, 2016 |
By Rebecca Hampson
US-based exchange traded fund provider VanEck is celebrating the 10-year anniversary of its VanEck Vectors Gold Miners ETF (GDX). Hitting its decade anniversary yesterday, the ETF was not only the firms’ first fund but also the first ETF to focus on gold mining equities. GDX was originally designed to provide investors with a single point of access to a portfolio of companies in the global gold mining space. The ETF, which has a total expense ratio of 0.52%, now has nearly $8 billion in assets (as of the end of April) and is one of the most widely traded ETFs (and equities) in the market. It is part of 70 funds offered globally by VanEck.
Posted in Commodities |
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Tags: Commodities, Equities, ETF and Index News, ETF Industry News, ETF Launch, ETNs and ETCs, Europe, Themes and Strategy, United States and Canada, VanEck Vectors
May 17th, 2016 |
By Rebecca Hampson
Canadian investment fund manager BMO Asset management has launched a new smart beta emerging markets exchange traded fund on the Toronto stock exchange adding to its existing range of ETFs. The BMO Low Volatility Emerging Markets Equity ETF (ZLE) provides investors with exposure to Emerging Markets while navigating market volatility. The ETF is designed for investors looking for long-term growth through emerging market equities with greater downside protection than market-capitalization-weighted products. It provides exposure to a low beta weighted portfolio of emerging markets stocks. Beta measures the security’s sensitivity to market movements. The ETF also uses a rules based methodology to build a portfolio of less market sensitive stocks from a universe of emerging market large cap stocks. The ETF has 80 holdings with 96.87% in stock and the remainder in cash or cash equivalents.
Posted in Equities |
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Tags: Alternatives, Emerging and Frontier, ETF and Index News, ETF Industry News, ETF Launch, Smart Beta, Themes and Strategy, United States and Canada, Volatility
May 16th, 2016 |
By Rebecca Hampson
WisdomTree has announced that it has bought the outstanding 25% share in the European exchange traded platform as it looks to continue growing in Europe. The buyout follows the US provider’s initial 75% purchase in January 2014, and entry to the European market, with the obligation to buy out the remaining minority investment within four years. The move will see Boost ETP’s founders, Hector McNeil and Nik Bienkowski leave. The WisdomTree Europe platform now has around $940 million in assets under management, a 1,780% increase from its initial base of $50 million in 2014. McNeil and Bienkowski, Co-CEOs of Boost, said: “WisdomTree is a truly innovative and dynamic ETF manager with a bright future.”
Posted in ETF and Index News |
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Tags: Boost ETP, ETF and Index News, ETF Industry News, ETNs and ETCs, Leveraged and Inverse ETFs, United Kingdom, United States and Canada, WisdomTree
May 16th, 2016 |
By James Lord, CFA
New York-based asset manager IndexIQ has launched the first exchange-traded funds to introduce a momentum investing approach to fixed income markets. The IQ Enhanced Core Bond US ETF (AGGE) and IQ Enhanced Core Plus Bond US ETF (AGGP) have begun trading on the NYSE Arca. The ETFs adopt a ‘fund of funds’ structure, investing in fixed income sector ETFs that are displaying the strongest positive total return momentum. AGGE invests in sectors across the US investment grade fixed income market. AGGP employs the same investment approach, with the added ability to include exposure to US high yield debt and US dollar denominated debt of emerging market issuers.
Posted in Fixed Income |
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Tags: Emerging and Frontier, ETF and Index News, ETF Industry News, ETF Launch, Fixed Income, High Income, High Yield, IndexIQ, Smart Beta, Themes and Strategy, United States and Canada