Archive for May 2017

ETF fees on downward trend, finds ICI

May 26th, 2017 | By
WisdomTree launches three inverse fixed income ETPs

The Investment Company Institute (ICI), an association of US investment companies, has released research showing that average US-listed ETF fees have been on a downward trend in recent years. The report also shows that as a proportion of all US assets invested, the market share of assets in ETFs has grown from 3.3% in 2005 to 27.2% at the end of 2016.


Legg Mason and ClearBridge partner on actively managed ESG ETFs

May 26th, 2017 | By
Nuveen launches new ESG bond ETF

Legg Mason and its affiliate ClearBridge Investments have teamed up for the launch of two new actively managed, environmental, social and governance (ESG)-focused ETFs: the ClearBridge Large Cap Growth ESG ETF (LRGE) and the ClearBridge Dividend Strategy ESG ETF (YLDE), both listed on the NASDAQ exchange.


Vanguard launches Shanghai subsidiary

May 26th, 2017 | By
Ping-An launches HSCEI ETF on Shenzhen Stock Exchange

Vanguard, the world’s largest mutual fund manager and second-largest largest ETF provider, has launched a wholly-owned subsidiary in China called Vanguard Investment Management (Shanghai) Limited. Structured as a wholly foreign-owned enterprise (WFOE), the new entity will enable Vanguard to bring its investment philosophy to Chinese investors. Vanguard has $4.2 trillion in assets under management, with some $715 billion invested in US-listed ETF assets as of 23 May 2017.


Cambria launches actively managed US equity ETF

May 25th, 2017 | By
Cambria launches actively managed US equity ETF

Cambia Investment Management has launched the Cambira Core Equity ETF (NYSE Arca: CCOR) which actively manages a diversified portfolio of US equities and US equity options. Meb Faber, Cambria’s chief investment officer, said: “The Cambria Core Equity ETF fits in well with the growing lineup of innovative ETF solutions for various types of investors, both individual and institutional, that Cambria has already launched.”


Low volatility ETFs – a good investment?

May 24th, 2017 | By
Did hedging tail risk pay off?

Low volatility strategies have gained significant traction in Europe, fuelled by investors looking to reduce risk in volatile markets. In a new research paper, which analyses the growing popularity of such strategies, Morningstar estimates that they have racked up €27 billion of net flows since 2012, with total assets under management reaching €40bn as of year-end 2016. A decent chunk of these assets are held in ETFs, with iShares’ European-domiciled minimum volatility suite, for example, housing some €4 billion in AUM alone. But are they good investments?


Solactive, B-BRE and IBI partner on Israeli equity smart beta index and ETF

May 24th, 2017 | By
Defiance debuts first Israel bond ETF

Solactive and B-BRE have launched the Solactive – B-BRE Tel Aviv 125 Low Volatility High Dividends Index, used as the underlying index for a new IBI fund trading on the Tel Aviv stock exchange. The index tracks the performance of 25 shares from the TA-125 Index, the most widely used market capitalisation benchmark index of the Tel Aviv stock exchange, selected for their high dividend and low volatility characteristics.


What next for China ETFs after Moody’s downgrade?

May 24th, 2017 | By
Amundi launches Chinese Treasury & policy bank bond ETF

On 24 May, Moody’s downgraded China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook from stable to negative. This comes on the back of efforts by Chinese authorities to reduce a build-up of debt, after becoming concerned about financial sector stability and asset price bubbles. With short-term uncertainty around China on the rise, what can ETF investors expect in the years ahead?


Invesco PowerShares launches S&P 500 multi-factor ETF

May 23rd, 2017 | By
PowerShares launches S&P 500 multi-factor ETF

Invesco Powershares has launched a smart beta factor strategy ETF, based on S&P 500 constituents, on the London Stock Exchange. The PowerShares S&P 500 QVM UCITS ETF (LON: PQVM), which will also list on other European exchanges, employs a multi-factor approach using quality, value and momentum to allocate to companies from the S&P 500. Nicholas Samaran, head of product development, EMEA, PowerShares, said: “A multi-factor methodology helps focus on specific factors but avoids the potential challenges of choosing and timing factors”.


VanEck Vectors lists four ETFs on Borsa Italiana

May 23rd, 2017 | By
Fineco AM debuts 11 equity and fixed income ETFs

ETF provider VanEck Vectors has expanded its presence in Europe with the cross listing of four ETFs on the Borsa Italiana. Philipp Schlegel, international business development at VanEck, said: “Within recent years, Borsa Italiana has recorded a significant rise in average daily ETF trades on the Italian stock exchange. By listing our ETFs on Borsa Italiana, we are responding to investor demand for access to local trading.”


Nearly half of all asset owners now using smart beta: FTSE Russell survey

May 23rd, 2017 | By
Investors have nearly doubled ETF allocations in 5 years, finds Charles Schwab

Nearly half of all asset owners now have an allocation to smart beta, according to the latest annual smart beta survey from index provider FTSE Russell. Forty-six percent of asset owners now use smart beta, marking the highest adoption rate since the survey’s inception in 2014. This is up from 36% in 2016 and 26% in 2015, with a further 25% currently evaluating smart beta but with no allocation at present. The outlook for smart beta continues to look positive, too, with 76% of respondents planning to increase their allocation within the next 18 months.