Archive for June 2016
Jun 20th, 2016 |
By James Lord, CFA
WisdomTree Europe has cross-listed a suite of Boost-branded exchange-traded products on the London Stock Exchange, offering investors up to 3x short and leveraged exposure to the price of oil. The ETPs, which are offered in US dollar and British pound share classes, have their primary listings on the Borsa Italiana. Viktor Nossek, Director of Research at WisdomTree Europe, said: “Oil remains an important area of investor interest due to its macro-economic and geopolitical characteristics. The record traded turnover this year of close to $2.4bn in the Boost WTI 3x Oil S&L ETPs, on Borsa Italiana, is a testament to the efficiency and attractiveness of these products for investors looking to take short term tactical views on the price of oil.”
Posted in Commodities |
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Tags: Boost ETP, Commodities, ETF and Index News, ETF Industry News, ETF Launch, ETNs and ETCs, Europe, Themes and Strategy, United Kingdom, WisdomTree
Jun 17th, 2016 |
By James Lord, CFA
Japanese equity exchange-traded funds have experienced significant declines recently as traders reacted to the Bank of Japan’s decision not to add further monetary stimulus and the upcoming Brexit vote weighed heavily on risk sentiment. The iShares MSCI Japan USD Hedged UCITS ETF (LSE: IJPD) and the SPDR MSCI Japan EUR Hedged UCITS ETF (LSE: JPEH), two of the largest funds to cover the space, are both down 9.3% between 31 May and 16 June 2016.
Posted in Equities |
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Tags: Asia Pacific, Boost ETP, Direxion, Equities, ETF and Index News, ETF Industry News, Japan, Leveraged and Inverse ETFs, ProShares, Themes and Strategy
Jun 17th, 2016 |
By Rachael Revesz
As parliamentary elections loom in Spain and polls suggest a lack of a clear majority, Spanish ETF returns have continued to dive into negative territory. Spain has been suffering a political deadlock for months following an inconclusive election in December, which stripped Prime Minister Mariano Rajoy’s centre-right People’s Party of an absolute majority and made his goals of austerity and reform ever harder to implement. The election in December also raised worries of prolonged political and economic uncertainty, as seen in neighbouring countries like Greece and Portugal. The Amundi MSCI Spain UCITS ETF (CS1) is now down 14.5% year-to-date and has dropped over 23% in the past year alone.
Posted in ETF and Index News |
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Tags: Amundi, ComStage, DWS Xtrackers, Equities, ETF and Index News, ETF Industry News, Europe, Fixed Income, iShares, Lyxor, MSCI, Themes and Strategy
Jun 16th, 2016 |
By Rebecca Hampson
Global index provider MSCI has announced that it will not be including China’s A Shares in its Emerging Market index. This is the third year in a row that China’s domestic market has been denied entry into MSCI’s indices. Not being included in the index will come as a blow to policy makers in Beijing who have been working hard to reform China’s domestic market, opening up its financial markets to attract foreign capital. China is the world’s second-largest equity market.
Posted in Equities |
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Tags: China, Emerging and Frontier, Equities, ETF and Index News, ETF Industry News, MSCI, Themes and Strategy
Jun 16th, 2016 |
By James Lord, CFA
Europe’s second largest provider of ETFs Deutsche Asset Management has expanded its ‘Yield Plus’ ETF range with the launch of the db x-trackers iBoxx EUR Corporates Yield Plus UCITS ETF (Xetra: XDEP) that provides exposure to the euro-denominated corporate bond market via the Markit iBoxx EUR Corporates Yield Plus Index. Martin Weithofer, Deutsche Asset Management’s Head of Strategic Beta, commented: “The strategic beta corporate bond index that our new ETF tracks offers a significant yield pick-up versus it’s non-yield plus equivalent, with moderately increased risk characteristics and almost identical duration.”
Posted in Fixed Income |
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Tags: DWS Xtrackers, Emerging and Frontier, ETF and Index News, ETF Industry News, ETF Launch, Europe, Fixed Income, Markit, Smart Beta
Jun 16th, 2016 |
By James Lord, CFA
Exchange-traded fund provider First Trust Advisors has launched the First Trust RiverFront Dynamic Emerging Markets ETF (Nasdaq: RFEM), an actively managed ETF sub-advised by RiverFront Investment Group, which seeks to provide capital appreciation through exposure to emerging market economies. “Emerging market equities are dynamic and quickly-evolving, brimming with both opportunities and risks. We believe this actively managed ETF may provide significant advantages versus ETFs tracking traditional beta benchmarks, particularly when it comes to security selection, asset allocation, and managing currency risk,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
Posted in Equities |
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Tags: Emerging and Frontier, Equities, ETF and Index News, ETF Industry News, ETF Launch, First Trust, FTSE, iShares, MSCI, Themes and Strategy, Vanguard
Jun 16th, 2016 |
By James Lord, CFA
Earlier this month asset manager Zyfin launched the first UCITS-compliant exchange-traded fund tracking the Turkish sovereign bond market, increasing the range of investment opportunities available to European ETF investors. With a weighted average return at around 9.5% the fund will appeal to long-term investors searching for higher yields in growing emerging markets. However, higher yields mean increased risks and investments within Turkey contain significant currency, inflationary and idiosyncratic risks requiring closer examination to determine whether it is suitable to hold in an investment portfolio.
Posted in ETF and Index News |
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Tags: Asia Pacific, Emerging and Frontier, Equities, ETF and Index News, ETF Industry News, ETF Launch, Europe, Fixed Income
Jun 16th, 2016 |
By James Lord, CFA
Global asset manager Columbia Threadneedle Investments has launched three smart beta exchange-traded funds targeting global, international or US-listed dividend paying firms. The suite of rules-based, factor-driven, smart beta ETFs – called the Columbia Beta Advantage family – are launched on NYSE Arca. Each ETF’s custom-designed index is calculated by MSCI. To construct the indices, all securities from their parent index are screened according to their MSCI environmental, social and governance (ESG) scores, as well as their dividend yields. Smart beta ETFs are predicted to boom with BlackRock’s iShares predicting an annual organic growth rate of 19% to reach total global assets of $1tn by 2020.
Posted in Equities |
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Tags: ETF and Index News, ETF Industry News, ETF Launch, Europe, FTSE, Global, High Income, IndexIQ, Invesco, iShares, MSCI, Russell Indexes, Smart Beta, United States and Canada
Jun 15th, 2016 |
By James Lord, CFA
In a latest study released by investment research house Morningstar, the firm found that high yield bond exchange-traded funds play a significant role in relieving market stress during volatile periods. Morningstar’s report – “High-Yield Bond ETFs – A Primer on Liquidity” – questions the vehicle’s presumed role in market instability, and outlines the crucial differences between the ETFs’ primary and secondary layers of liquidity. Jose Garcia-Zarate, Senior ETF Analyst for Morningstar’s European Passive Fund Research, commented: “Our analysis suggests that far from being agents of instability, high-yield bond ETFs have acted as a safety valve, allowing investors to express their investment views without unduly affecting the underlying market.”
Posted in Fixed Income |
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Tags: ETF and Index News, ETF Industry News, ETF Launch, Europe, Fixed Income, Global, High Yield, iShares, Morningstar, SSGA SPDR, Themes and Strategy, United States and Canada
Jun 15th, 2016 |
By Rebecca Hampson
Britain is well and truly in the countdown to the EU referendum vote, with only two weeks to go until it decides whether to stay in or leave on June 23rd. And with the latest poll from YouGov taken on June 6th showing that 43% vote to remain and 42% vote to leave, the battle remains close. ETF Strategy spoke to industry experts who take a look at how investors view the impending vote and how portfolios are being adjusted accordingly. Included are: James Butterfill, Head of Research and Investment Strategy at ETF Securities, Viktor Nossek, Director of Research at WisdomTree Europe, and Marlene Hassine, Head of ETF Research at Lyxor AM.
Posted in ETF and Index News |
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Tags: Currencies, Equities, ETF and Index News, ETF Industry News, ETF Securities, Europe, Leveraged and Inverse ETFs, Lyxor, Smart Beta, Themes and Strategy, United Kingdom, WisdomTree