Archive for November 2016

UBS unveils suite of US Treasury Inflation-Protected ETFs

Nov 30th, 2016 | By
Andrew Walsh, head of passive and ETF specialist sales UK & Ireland

UBS has launched a suite of ETFs seeking to mitigate inflation risk by tracking US Treasury Inflation-Protected Securities (TIPS). The ETFs provide exposure to either shorter term (with remaining maturities between one and ten years) or longer term (greater than ten years) TIPS, while trading in British pounds. Currency-hedged versions of the shorter term TIPS ETF relative to the British pound, Swiss franc or euro have also been launched. Andrew Walsh, Head of UBS ETF Sales UK & Ireland, commented: “With this innovative suite of ETFs our clients our able to protect long-term purchasing power and gain access to an asset class that compounds the real rate of return.”



Italian banking crisis weighs heavily on European financials ETFs

Nov 30th, 2016 | By
italy-banking-crisis-europe-financials-etfs

A growing banking dilemma in Italy, where non-performing loans currently make up in excess of $400bn worth of assets, is weighing heavily on ETFs tracking European financial stocks – Italian banks comprise roughly 9% of the European Union’s banking sector. Persistently low interest rates, increasing anti-EU sentiment within the country, and a national referendum on 4 December which may see current Prime Minister Matteo Renzi resign, are all adding up to a heightened risk profile for the country’s financial sector.



Black Friday boosts retail-focused ETFs

Nov 29th, 2016 | By
Black Friday boosts retail-focused ETFs

Record-breaking sales on Black Friday have added a further boost to retail-focused exchange traded funds across Europe and the US. US shoppers on mobile phones bought $3.05bn on Black Friday, adding to sales of almost $2bn on Thanksgiving day, indicating consumer sentiment in the States is still robust after a divisive and, for some, unexpected presidential result. ETFs from iShares and SPDR ETFs which track the S&P 500 Consumer Discretionary Index have risen by 3.7% since 14 November.



Trump win catches ETF investors out as risk assets climb

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

By Nick Leung, Research Analyst at WisdomTree:

“Donald Trump’s surprise victory in the US Presidential election caught many ETF investors out, as risk assets surprised to the upside and safe havens routed in the aftermath. WisdomTree’s Boost range of short and leveraged exchange traded notes has revealed that investors trying to protect themselves against an expected post-Trump sell-off actually missed out on further gains in US equities, which now sit at fresh record highs following upward moves of 3.0%.”



Emerging markets ETFs react to Trump’s election victory

Nov 29th, 2016 | By
New Solactive EM consumer technology index to underlie KraneShares ETF

Significant falls in the value of emerging markets ETFs following the US presidential election – the iShares MSCI Emerging Markets UCITS ETF (LON: IDEM) tanked 8.4% in USD terms in the three days after the election – suggest investors believe the asset class could be set for more volatility under a president Trump. Emerging economies may suffer under Trump’s stewardship as his “America First” policy, designed to bring back manufacturing jobs to the US, could dampen domestic demand for exports from around the globe.



OPEC: Short term gain, long term (continued) pain?

Nov 29th, 2016 | By
WisdomTree: How to trade the Brent/WTI oil spread using short and leveraged ETPs

By Nick Leung, Research Analyst at WisdomTree:

“It’s coming down the wire. The upcoming OPEC Vienna meeting this week may represent yet another change to the status quo for 2016, with the cartel possibly cementing its first production cut in eight years and completing a dramatic shift in strategy. We believe that whilst this may present short-term tactical opportunities for oil investors, long-term positioning remains a challenge.”



Jack Bogle: We are in the middle of a revolution due to indexing

Nov 29th, 2016 | By
Jack Bogle: We are in the middle of a revolution due to indexing

In a new interview with Bloomberg Jack Bogle, founder of Vanguard, has claimed the financial industry is “in the middle of a revolution caused by indexing” due to the inability of active managers to outperform passive benchmarks, coupled with progressively lower fees for index-tracking products. “We’re beyond the beginning, but nowhere near the end,” Bogle said, noting that while indexing was only at 10 to 15% of assets in 2016, it could “easily” get to 50%.



VanEck starts ETF distribution in Austria and Italy

Nov 29th, 2016 | By
Trump’s healthcare reform: a blessing or a curse for moats in the US?

VanEck Investments has continued its expansion into Europe by registering its suite of UCITS exchange-traded funds in Italy and Austria. Going forward, Italian and Austrian investors will have access to all fund information, research, investment themes, and other VanEck services. VanEck’s suite of UCITS ETFs include two gold miners ETFs and a US equity ETF which tracks attractively priced companies with sustainable competitive advantages, also known as ‘economic moats’.



Gold ETFs topple while US equities surge on Trump win

Nov 28th, 2016 | By
Gold ETFs topple while US equities surge on Trump win

Although many market pundits forecast US equity ETFs to plummet and gold ETFs to surge upon the election of Donald Trump, the opposite occurred. Physical gold, seen as a safe haven asset in times of turmoil, has actually fallen by roughly 7% since the election, hindered by rising yields and a stronger dollar. Conversely, the S&P 500, the Dow Jones Industrial Average and the Nasdaq 100 have all risen since Trump was elected, buoyed by his promises to spend more on infrastructure; as well as lower taxes and regulations.



MSCI reports strong demand for ETFs linked to factor indices

Nov 17th, 2016 | By
MSCI launches factor ESG index series

MSCI has reported strong net inflows of $17.5bn to ETFs linked to its factor indices between 1 January and 30 September 2016. With global factor-based ETFs attracting nearly $51bn in net inflows over this period, MSCI-linked ETFs have captured approximately one third of total net flows. Diana Tidd, MSCI’s Head of Index Products, commented: “Our innovative factor index offering, combined with the strength of our top quality brand, continue to make MSCI indices the first choice of ETF providers around the world.”