Exponential ETFs, a wholly owned platform of Michigan-based boutique asset manager ACSI Funds, has announced the launch of its fixed-fee sub-advisory and capital markets service for select asset managers. The fixed-fee service marks a change from the traditional asset-based fee model which generally results in higher costs as popular funds attract assets. Phil Bak, CEO of Exponential ETFs, commented: “Fund managers should never be penalized for achieving success.”

State Street Global Advisors (SSGA), the asset manager behind the SPDR range of ETFs, is closing seven of its Europe-listed funds, including five equity and two fixed income ETFs. In a notice to shareholders on 25 August, the firm announced the decision to close the funds was made because “the Net Asset Value of each Fund is currently less than the minimum amount specified in the Prospectus” and SSGA does “not believe that it will increase materially in the near future and the Funds are uneconomic to operate.”

First Asset Investment Management has launched the First Asset MSCI International Low Risk Weighted ETF on the Toronto Stock Exchange, providing exposure to a portfolio of low volatility equities from developed international countries.

Shares of subprime lender Provident Financial, a favourite of star fund manager Neil Woodford, have dived nearly 70% following a profit warning, the resignation of its CEO and the cancellation of its dividend. While the stock is held in many well-known equity income funds, including strategies from Invesco Perpetual’s Mark Barnett plus actively managed funds from Jupiter, Rathbones, M&G and Aberdeen, it is notably absent from the BMO MSCI UK Income Leaders UCITS ETF (ZILK) and SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV) – two smart beta ETFs that deploy rules-based screens to achieve dividend sustainability.

Assets invested in smart beta equity ETFs/ETPs listed globally reached a new record of $607 billion at the end of July 2017, according to data from ETF industry consultant ETFGI. Record levels of assets were also reached at the end of the month for equity smart beta ETFs/ETPs listed in the United States at $538.6bn, in Europe at $44.8bn, in Canada at $14.8bn and in Asia Pacific (ex-Japan) at $5.6bn.

Assets invested in ETFs/ETPs listed in Asia Pacific excluding Japan have reached a new record high of $151 billion at the end of July 2017, surpassing the prior record of $145bn set at the end of June 2017, according to data from London-based ETF industry consultant ETFGI.

By Michael Arone, chief investment strategist at State Street Global Advisors.

This summer, investors have been saying “hakuna matata” to the turmoil emanating from Washington and using a problem-free philosophy to send stocks to fresh highs and market volatility to multi-year lows. But investors should be prepared: September may bring a sudden dose of volatility to mellow markets.

Redwood Asset Management has launched the Redwood Emerging Markets Dividend ETF (REM) on Aequitas NEO Exchange in Canada. The actively managed fund targets exposure to high-quality, income-generating companies in developing countries while seeking to lower volatility compared to the broad market.

First Trust has unveiled the First Trust Institutional Preferred Securities and Income ETF (NYSE Arca: FPEI), an actively managed fund investing in preferred securities issued mainly to institutional-level investors.

By Jesper Koll, WisdomTree’s head of Japan.

The April-June GDP report suggests that the Japanese economy has entered into a sweet spot, with growth accelerating and broadening into all components of domestic demand. While the 4% annualised GDP growth rate marks peak slingshot acceleration, the details of the report fully verify our thesis that Japan has entered a self-sustaining domestic demand-led up-cycle.