As of 31 October 2016, 115 ETFs have been launched in Europe this year. Of these funds, three out of the top five in terms of asset-gathering offer fixed income exposure, highlighting the importance investors have placed on finding income and yield. Interestingly, one fund offers exposure to euro corporate bonds with a sustainability overlay, another strong indication of current demand from investors. Jose Garcia-Zarate, Associate Director of Passive Strategies Research at Morningstar Europe, commented: “Ethical and sustainable investing is becoming a strong trend, both for institutional and retail investors.”

European ETF provider Source believes the US economy still has momentum – and equities may still outperform – despite several economic indicators “flashing red”. While investment and corporate profits have declined recently, the gradual pace of growth during this expansion may indicate the economy still has room to grow. Paul Jackson, Head of Research at Source, commented: “…the fact that wage and price inflation is not excessive, that the Fed is tightening only very slowly and that the yield curve is far from negative gives some hope that this cycle will get a second wind over the coming quarters. If so, stocks will go higher.”

Horizons ETFs USA, a member of the Horizons Exchange Traded Funds Group, has entered into an agreement to acquire Recon Capital Advisors, a Connecticut-based investment advisor to ETFs. Under the terms of the agreement, Recon members will join Horizons USA and the four ETFs managed by Recon Capital will be managed by Horizons USA. Garrett Paolella, Chief Executive Officer at Recon Capital, said: “We are proud to be joining the Horizons USA team. Horizons ETFs has built a solid reputation as an innovator in the global ETF market, and we share this commitment to innovation.

Goldman Sachs Asset Management (GSAM) has unveiled an exchange-traded fund which tracks the 50 US equities that are most recurring in the top 10 positions across a wide range of US-based hedge funds. The ETF thereby provides investors with a cost efficient means of accessing the highest-conviction ideas of some of the best managers in the hedge fund industry. Michael Crinieri, Head of ETF Strategies at GSAM, commented: “We’re thrilled to be able to package these high conviction investment ideas from a broad array of professional investors into a cost effective, tax-efficient and convenient ETF wrapper.”

WisdomTree has launched the WisdomTree Dynamic Currency Hedged International Quality Dividend Growth Fund (Bats: DHDG), an ETF providing exposure to developed international dividend-paying stocks with strong growth and value characteristics. The fund further aims to boost returns by using hedges only when they are deemed to be profitable – according to carry, value and momentum signals. Jeremy Schwartz, WisdomTree Director of Research, commented: “For those who do not want to make the timing decision themselves, DHDG will help dynamically adjust currency-hedge ratios based on a data-driven, transparent process.”

By Antoine Lesné, Head of SPDR ETF Strategy & Research EMEA, State Street Global Advisors: “Recent studies have shown that performance of risk assets has been primarily driven by central banks’ actions. This has led to strong correlations of performance and pushed investors searching for yield into less traditional sectors such as equities, through dividend strategies for example. Meanwhile, in 2016, duration has been the driver of portfolio growth. So as the ‘doves cry’, the curves may steepen and duration risk must be controlled.”

By Viktor Nossek, Director of Research at WisdomTree Europe – “In an information age where private or secret matters can readily be made public and reach critical mass via social media, opinions and perceptions can turn quickly. With less than a week left before Americans go to the polls, the outcome of who will become the next US president is still open.”

Assets within the world’s 500 largest asset managers have dropped for the first time in half a decade – assets fell by $1.4tn to $76.7tn in 2015, the first decline since 2011, according to research by Willis Towers Watson. Assets at European firms took a big hit, falling by 3.3% to $25.1tn, while assets in US firms fell by 1.1% to $44tn. At the same time, ETF assets have soared from $2.8tn to $3.4tn during the year ended 30 September 2016. Looking at the factors driving this change, many analysts believe this trend is likely to continue.

ASCI Funds has launched the American Customer Satisfaction Core Alpha ETF (Bats: ASCI), providing exposure to US-listed equities whose firms enjoy high customer satisfaction relative to their sector peers.

Morningstar has published analyst ratings for more than 250 global ETFs, accounting for more than $1.7tn in AUM as of 30 September 2016. The ratings system displays Morningstar analysts’ conviction in a fund’s ability to outperform its relevant peers on a risk-adjusted basis over a full market cycle, with funds being awarded either a Gold, Silver, Bronze, Neutral, or Negative grade. Ben Johnson, Director of Global ETF Research for Morningstar, writes: “In sum, we reserve our Morningstar Medalist ratings for those low-cost ETFs that we believe will tightly track a sensibly constructed index during a long time frame.”