Archive for February 2017

LSE announces launch date of RFQ platform for ETFs

Feb 28th, 2017 | By
London Stock Exchange to launch RFQ trading for ETFs in March

The London Stock Exchange (LSE) has announced that its ‘request for quote’ (RFQ) platform for ETFs and ETPs, traded on the SETS and ETF – Euroclear Bank Settlement trading services, will go-live from Monday 13 March 2017. The RFQ functionality for ETPs has been designed to offer on-exchange benefits and cleared execution for larger size trades, allowing greater flexibility and protection for both institutional customers and responding market makers.

Gold boosted by cracks in market confidence says VanEck

Feb 28th, 2017 | By

Uncertainty over the Trump administration is providing support for the gold price according to market commentary released by ETF provider, VanEck. Gold and gold stocks have had an encouraging start to the year, with the gold price and the VanEck Vectors Gold Miners UCITS ETF up 8.2% and 12.0% YTD respectively.

NYSE lists 35 of top 50 new US ETFs by AUM in 2016

Feb 28th, 2017 | By
Boost for Dow ETFs as index passes 23,000

NYSE Arca, NYSE Group’s marketplace for exchange-traded funds, listed 35 of the top 50 new ETF by assets under management in 2016. The group also reaffirmed its position as the leading US ETF listings exchange for the ninth consecutive year with over 92% of total US ETF AUM. The total US ETF market grew by approximately $417 billion, or nearly 20% during 2016, and ETP volume now accounts for nearly 30% of all dollar volume trading in US stocks.

Smart beta equity ETFs record 5-year annual growth of 31%

Feb 28th, 2017 | By
European ETF industry flourishes in 2017 with AUM growth of 40%

London-based ETF research and consultancy firm, ETFGI, has reported that smart beta equity ETFs/ETPs assets have experienced a 5-year compound annual growth rate of 30.6%, according to data up to the end of January 2017. The data also reveals that assets invested in smart beta equity ETFs/ETPs listed globally reached a new record high of $534 billion at the end of January 2017.

WisdomTree celebrates 10-year anniversary of US earnings ETFs

Feb 28th, 2017 | By
Horizons changes index of S&P 500 covered call ETF

WisdomTree is celebrating the ten-year anniversary of the WisdomTree domestic earnings family of ETFs. According to Morningstar data, as of 28 February 2017, the four funds have each outperformed the majority of peers in their respective categories over the past decade.

First Trust gathers largest actively-managed ETF/ETP net inflows during January

Feb 28th, 2017 | By
First Trust launches SMID dividend achievers ETF

First Trust has gathered the largest actively-managed ETF/ETP net inflows during January 2017, attracting $394m in net new assets, according to latest research from ETF industry consultant ETFGI. The strong demand for the firm’s products pushed iShares into second place for the month, with the behemoth ETF issuer recording $243m in actively-managed ETF/ETP net inflows, while Source came third with a net $192m in new actively-managed ETF/ETP assets.

Greater fee transparency to boost ETF demand in Asia

Feb 28th, 2017 | By
Asia Pacific ex-Japan ETF assets up but net inflows subdued during 2017

ETFs listed in Asia may see an uptick in investor demand if current initiatives under consideration by regulators to improve the availability of information on fees incurred by fund investors while buying mutual fund products come into effect. Global consultancy firm Cerulli Associates believes as the initiatives are aimed at reducing costs for end-investors, there could be further efforts by regulators to promote ETFs as a low-cost solution to investors.

ERI Scientific Beta launches new series of multifactor smart beta indices

Feb 28th, 2017 | By
ERI Scientific Beta counters Mercer’s criticism of factor investing

ERI Scientific Beta has announced the launch of a series of new multifactor smart beta indices. Noël Amenc, CEO of ERI Scientific Beta, said the Multi-Beta Diversified High Factor Exposure series uses a top-down approach to maximise explicit risk control and diversification while taking interactions between factors into account. The methodology uses a High-Factor-Exposure filter which eliminates stocks that have exposures to factors other than the desired factor. The indices may serve as the underlying for future investment products such as ETFs.

Warren Buffett rails against fee-hungry Wall Street managers

Feb 27th, 2017 | By
Warren Buffett rails against fee-hungry Wall Street managers

Billionaire Warren Buffett, whose stock picks over several decades have enriched generations of Berkshire Hathaway Inc shareholders, delivered a black eye to the investment industry on Saturday, urging ordinary investors to buy plain-vanilla index funds. “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients,” Buffett said in his annual letter to shareholders. “Both large and small investors should stick with low-cost index funds,” he added.

ETF Securities reports demand surge for technology ETFs

Feb 27th, 2017 | By
ETF Securities launches three thematic technology ETFs

ETF Securities has reported a sharp increase in investor demand in 2017 for its technology ETFs, with AUM in the firm’s cyber security, and robotics and automation ETFs increasing by 60%, and reaching a collective $426m. Howie Li, Co-Head of CANVAS at ETF Securities, commented: “Trump has bumped interest in both products after making campaign cornerstones of bringing work back to the US, which will likely boost appetite for factory tech, and addressing the cyber security issues which are said to have plagued the election.”