Archive for July 2016

WisdomTree and ICBC launch all-class China ETF

Jul 31st, 2016 | By
WisdomTree and ICBC Credit Suisse launch China equities ETF on LSE

Exchange-traded fund provider WisdomTree and Hong Kong-based asset manager ICBC Credit Suisse (ICBCCS) have collaborated to launch a new China-focused ETF on the London Stock Exchange. The ICBCCS WisdomTree S&P China 500 UCITS ETF (LSE: CHIN) tracks the S&P China 500 Index, a reference for the float-adjusted market cap-weighted performance of the 500 biggest and most liquid Chinese firms across all Chinese share classes, including A-shares and offshore listings. It is the tenth ETF as part of the Renminbi Qualified Foreign Institutional Investor (RQFII) program to list on the LSE and the third to launch in 2016.

Did Sports Direct fall victim to socially responsible investing?

Jul 31st, 2016 | By

The downfall of Sports Direct has shown that it is not just earnings growth and revenue, but also executives’ decisions and the quality of work for employees, that can affect a company’s share price and ultimately its future. As socially responsible investing becomes increasingly thematic these companies are inevitably falling under the spotlight. In a recent government report from the business, innovation and skills select committee found that Sports Direct International’s factory in Derbyshire was like a “Victorian workhouse.” The only socially responsible UK equity ETF on offer – the UBS MSCI United Kingdom IMI Socially Responsible UCITS ETF – excludes Sports Direct.

BoJ increases ETF purchasing in latest monetary easing move

Jul 29th, 2016 | By
Nikko: Japan’s inflation and monetary policy outlook

The Bank of Japan’s Monetary Policy Meeting (MPM) today saw its Policy Board announce, by majority vote, that it would increase its exchange-traded fund purchasing program in a bid to expand stimulus. A note from the meeting stated that there would be: “An increase in purchases of ETFs by a 7-2 majority vote….The Bank will purchase ETFs so that their amount outstanding will increase at an annual pace of about 6 trillion yen.” (Roughly $58bn, which is almost double the previous pace of about 3.3 trillion yen).

Lyxor lists London’s first FTSE 100 USD-hedged ETF

Jul 29th, 2016 | By
S&P DJI reports over $1tn in ETP assets linked to its indices

Europe’s third largest provider of exchange-traded funds Lyxor has unveiled a new ETF offering US dollar-hedged exposure to the FTSE 100 Index. The Lyxor UCITS ETF FTSE 100 – Monthly Hedged C-USD (LSE: 100H) is the first ETF in Europe to provide investors with exposure to the FTSE 100 and protect against adverse movements in the British pound against the US dollar. The fund may appeal to US dollar investors who are concerned of future volatility in Sterling following the UK’s vote to leave the European Union. Alternatively it may appeal to British pound investors willing to accept currency risk in exchange for the return on the index as well as the underlying forward currency contracts.

LSE builds presence as premier listing venue for offshore RMB investments

Jul 29th, 2016 | By
FTSE 100 ETFs rally as index passes 7,500

London Stock Exchange (LSE) has welcomed a new China-focused exchange-traded fund from Hong Kong-based asset manager ICBC Credit Suisse and ETF provider WisdomTree. The ICBCCS WisdomTree S&P China 500 UCITS ETF (LSE: CHIN) is the tenth Renminbi Qualified Foreign Institutional Investor (RQFII) ETF to list on the LSE and the third RQFII product to launch in 2016, further cementing the city’s role as a leading venue for the listing of offshore RMB-denominated investment products.

SPDR ETFs: Three reasons why investors are favouring corporate bonds

Jul 28th, 2016 | By

By Antoine Lesne, head of SPDR ETF sales strategy EMEA, State Street Global Advisors.
As generally expected, last week’s European Central Bank (ECB) meeting unfolded without any surprises; nothing new under the sun, so let’s enjoy it while the summer is here and continue to consider Euro corporate bonds. Such a cool, calm attitude suits the need to analyse the consequences of Brexit on the Eurozone. Mario Draghi also had a message that the Central Bank’s actions are but one tool in a whole kit of tools available to support growth and employment; other policy areas need to act swiftly, too.

Turkey ETFs volatile as Erdoğan gains power following failed military coup

Jul 28th, 2016 | By
PIMCO: Turkey – A Rolling Challenge

The failed military coup in Turkey sent exchange-traded funds into a downward spiral in July, with the Turkish equity index taking an overall hit of more than 13% over the last three months in sterling terms. On Friday 15 July, President Recep Tayyip Erdoğan struck back against the attempted military uprising, urging citizens – via FaceTime – to take to the streets in protest. During the six days after the failed coup, the iShares MSCI Turkey UCITS ETF (ITKY) fell more than 18% in sterling terms.

Should investors look at gold mining ETFs over gold ETPs?

Jul 28th, 2016 | By
Danny Dolan, Managing Director of China Post Global (UK)

Gold is making a comeback this year as investors look for safe-haven assets amid volatile markets, falling high grade bond yields and political events such as the EU Referendum. Data from exchange-traded product provider WisdomTree last week showed that gold ETPs have seen inflows of around $21bn in the first six months of the year. The metal is also trading at around $1,319 an ounce, which is up 24% since the beginning of the year. However, there is a strong case that gold is now over-priced, leaving little room for investors to buy the safe-haven asset at a sensible level. Danny Dolan, CEO China Post Global (UK) talks about why investors should look at gold mining ETFs.

FlexShares launches ESG global and US equity ETFs

Jul 28th, 2016 | By
Solactive launches global ethical low volatility index

Northern Trust’s exchange-traded fund division FlexShares has introduced two new funds that target the equities of firms listed in the US or globally with high environmental, social and corporate governance scores. The FlexShares STOXX US ESG Impact Index Fund (NASDAQ: ESG) and FlexShares STOXX Global ESG Impact Index Fund (NASDAQ: ESGG) seek to provide enhanced risk-adjusted returns by reducing portfolio exposure to specific stocks with operational risks associated with poor ESG scores.

Taiwan Stock Exchange unveils two smart beta equity indices

Jul 28th, 2016 | By
Taiwan sees significant inverse & leveraged ETF listing activity in October

Taiwan Index Plus (TIP), a subsidiary of the Taiwan Stock Exchange, has launched two new smart beta indices focusing on locally-listed dividend-paying equities. The ‘TIP TAIEX+ Dividend Appreciation 100 Index’ and the ‘TIP TAIEX+ Dividend Appreciation 150 Index’ target dividend-paying equities while weighting constituents by fundamental metrics. The new indices pave the way for the development of investment products such as exchange-traded funds to cover the space and will likely find favour catering to long-term investors such as pension funds in Taiwan and around the world who are seeking stable returns.