Archive for September 2016

Etho Capital and Future Super team up on global sustainability index and ETF

Sep 30th, 2016 | By
Etho Capital and Future Super to launch Australia’s first global sustainability index

US-based sustainable investment manager Etho Capital and Future Super, Australia’s first fossil fuel-free superannuation fund, are to launch an index – the Global Sustainability Leadership Index – tracking the performance of 100 of the world’s most sustainable and efficient companies that are leaders in their sectors. The index is due to underlie an exchange-traded fund which will be launched at the end of October 2016. Future Super investors have agreed to commit AU$35m to the ETF.

TrimTabs launches actively managed US Float Shrink ETF

Sep 30th, 2016 | By
S&P DJI reports over $1tn in ETP assets linked to its indices

New York-based investment manager TrimTabs Asset Management has launched the TrimTabs Float Shrink ETF (BATS: TTAC). The move follows exchange-traded fund provider AdvisorShares’ decision to replace TrimTabs with Wilshire Associates as the sub-advisor for the TrimTabs Float Shrink ETF (NYSE: TTFS) in June 2016. “We’re extremely excited to be able once again to offer our proven methodology to investors,” commented Charles Biderman, Founder and CEO of TrimTabs Asset Management.

ProShares launches ‘K-1 free’ actively managed crude oil ETF

Sep 30th, 2016 | By
WisdomTree: How to trade the Brent/WTI oil spread using short and leveraged ETPs

ProShares has launched the first crude oil ETF to deliver 1099 tax forms to the investor instead of the less desirable K-1 tax form. The ProShares K-1 Free Crude Oil Strategy ETF (Bats: OILK) is registered under the Investment Company Act of 1940, unlike other crude oil ETFs which are commodities partnerships. The fund uses active management to enhance returns through an optimised futures rolling strategy.

Amundi/EDHEC study finds high satisfaction among smart beta ETF users

Sep 30th, 2016 | By
Amundi captures over 10% of new ETF assets in Europe YTD

Smart beta exchange-traded funds are meeting investors’ expectations, with a satisfaction rate of 86%, according to a survey of 180 European investment professionals conducted by EDHEC-Risk Institute and commissioned by Amundi ETF. The main motivation for investing in smart beta ETFs is the capturing of factor premia, with value, low volatility and size factors considered as the most likely to be rewarded. Fannie Wurtz, Managing Director of Amundi ETF, Indexing & Smart Beta, commented: “The findings of this survey demonstrate that investors’ appetite for smart beta ETFs will keep on growing in the coming years.”

iShares cross-lists giant FTSE 100 ETF on Deutsche Börse

Sep 30th, 2016 | By
December marks busiest ETF listing month on LSE for 2017

Exchange-traded fund provider iShares has cross-listed the iShares Core FTSE 100 UCITS ETF on Deutsche Börse’s Xetra and Frankfurt exchanges (Ticker: IUSZ). The ETF gives investors access to the performance of the FTSE 100 Index, the flagship reference for large-cap blue-chip stocks listed on the London Stock Exchange. As of 28 September 2016 the iShares Core FTSE 100 UCITS ETF has over £4.1bn in assets invested in the fund and, with a total expense ratio of just 0.07%, is one of the cheapest means of accessing exposure to the index.

ETF provider WisdomTree investigates benefits of optimised commodity strategies

Sep 29th, 2016 | By
Nick Leung, research analyst at WisdomTree in Europe.

Nick Leung, Research Analyst at ETF provider WisdomTree, investigates the performance of BNP Paribas’ Optimised Commodities Index compared to ‘traditional’ broad commodity strategies such as the Bloomberg Commodity Index. The results show that the Optimised Commodity Index has outperformed year-to-date both in terms of return, attributable to the benefits of an enhanced rolling strategy versus a front-month approach, and in reducing risk by enhancing diversification through sector cap constraints.

What’s in a name? For European ETFs, a lot of confusion

Sep 29th, 2016 | By
Simon Barriball, Head of ETP Trading Europe at ITG

By Simon Barriball, Head of ETP Trading Europe at ITG.

The name should say it all “Exchange Traded Fund”. You would reasonably expect that a fund describing itself as an Exchange Traded Fund would do just that – trade on exchange. The reality in Europe is quite different. Best estimates of European trading are that 50-70% of all ETF trading is off exchange on an OTC basis. One could therefore argue that ETFs fail to live up to their name. We should ask why this is and does it really matter?

Source research points to attractiveness of EM sovereign bond ETFs

Sep 29th, 2016 | By
ETF provider Source sees upside in US economy despite red indicators

European ETF provider Source has released research revealing the relatively low indebtedness of emerging market countries compared to their developed peers. Indonesia and Russia performed particularly well with debt/GDP ratios of 64% and 84% respectively and low proportions of externally financed debt. Paul Jackson, Head of Research at Source, commented: “Based on their debt fundamentals, emerging markets are better placed than most developed markets, which make the yield premiums on their bonds even more attractive.”

Thomson Reuters expands ESG suite with Diversity & Inclusion Index

Sep 28th, 2016 | By

Thomson Reuters has launched the Diversity & Inclusion Index, measuring the performance of 100 global companies with diverse and inclusive workplaces. The index may form the basis for future investment products such as ETFs. Debra Walton, Chief Product & Content Officer at Thomson Reuters, commented: “Our research shows that companies that make investments and focus on ESG matters can have a stronger stock performance and better long-term profitability.”

Institutional investors turning to bond ETFs for fixed income exposures

Sep 28th, 2016 | By
ETFs gaining popularity with Asian institutional investors, finds Greenwich Associates

The difficult trading environment in bond markets is fuelling the use of bond ETFs in institutional portfolios, according to a survey of institutional investors conducted by research firm Greenwich Associates. The survey found that longer execution times, higher execution costs and increasing difficulty sourcing bond securities and completing trades have driven institutions to look beyond individual bonds. “Bond ETFs are emerging as an important alternative, and institutions are incorporating the funds into their process of rotating sector allocations, increasing or reducing risk levels and adjusting duration,” said Andrew McCollum, Managing Director at Greenwich Associates.