The Index Industry Association (IIA), a New York-based not-for-profit organisation, has released survey data revealing that the growth of smart beta has been the most significant driver of innovation in the sector, according to its members. IIA members include MSCI, FTSE Russell and S&P Dow Jones, all leading index providers to the ETF industry.
Stoxx has introduced the Euro Stoxx 50 Corporate Bond Sector, Rating and Maturity Bucket Sub-Indices, a suite of fixed income indices tracking corporate bonds issued by the 50 largest blue-chip companies in the Eurozone, with index classifications identified by sector, credit rating or maturity bracket. The sub-indices expand upon the recently launched Euro Stoxx 50 Corporate Bond Index, which is the fixed income equivalent of the widely followed Euro Stoxx 50 equity index.
Uber has partnered with digital investment manager MoneyFarm to provide its drivers with access to pension and ISA products for the first time in the UK. MoneyFarm, which currently offers pre-designed portfolios constructed exclusively with ETFs, will introduce an Uber co-branded pension product in the next few months, which will be targeted to the ride-hailing app’s estimated 40,000 partner-drivers in the UK.
ETFs/ETPs listed in Europe gathered $11.0bn of net new assets in January with investors displaying a clear demand for ETFs/ETPs tracking developed market equity exposures, according to latest data from ETF industry consultant ETFGI. Deborah Fuhr, Managing Partner and co-Founder of ETFGI, commented: “Investors favoured equities over commodities and fixed income during January as equity markets had a good start to 2017.”
ETF Securities, a London-based ETF provider, has reported that gold exchange-traded products are currently in favour with investors on the back of continued global political uncertainties. ETF Securities’ Gold ETPs experienced $141m inflows last week, the highest of any sector they cover, as gold prices rose 1.1% to nearly $1242/oz. The safe-haven status of gold
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Lincoln Financial Group has launched the industry’s first ETF-only variable annuity designed to help fee-based advisors address their clients’ retirement income challenges. Developed in collaboration with BlackRock, the Lincoln Core Income annuity features an investment selection comprised entirely of iShares ETFs and guarantees lifetime income equal to 4% of the initial deposit that increases annually by a 2% cost of living adjustment.
In response to the FCA’s Asset Management Market interim report, low cost ETF provider Vanguard has called for a “health warning” on fees to be included as part of a “radically simplified” approach to investor communications. Under the proposal, Vanguard believes warnings on fees should receive equal prominence to those on past performance. Sean Hagerty, Head of Vanguard’s European business, commented: “Investors cannot control the markets, but they can control what they pay to invest, and that makes an enormous difference over time to their returns.”
Kenya’s market regulator, the Capital Markets Authority (CMA), has granted approval for the listing of the country’s first exchange-traded fund – the NewGold ETF. First listed on the Johannesburg Stock Exchange in 2004, the ETF provides exposure to the spot price of gold, and has subsequently been cross-listed across Botswana, Nigeria, Ghana, and Mauritius. CMA CEO Paul Muthaura said: “This is a critical milestone in positioning Kenya as a gateway for regional and international capital flows.”
By Yacov Arnopolin, Emerging Market Portfolio Manager at PIMCO.
A recent trip to Moscow on the 100th anniversary of the 1917 revolution revealed not a whiff of revolutionary change in the economy, but rather stagnant growth mixed with structural stability. We could simply call it “stagnant stability.”
US equity volatility, both realized and implied, are at significantly depressed levels, according to latest research from S&P Dow Jones Indices. Tim Edwards, Senior Director at S&P Dow Jones Indices, commented: “Following a week in which both US and global equity indices breached all-time highs, the economic measurements of volatility show very few visible signs of distress in the market.” Despite low volatility indicators, investors are warned not to be complacent in an environment that appears to harbor significant political risks, and may wish to hedge with an ETF tracking the VIX Index.