All entries by this author

UK wealth managers taking an active approach to index investing

Oct 30th, 2017 | By
UK wealth managers are taking an active approach to index investing, according to a BlackRock-commissioned survey from KPMG.

A survey from KPMG commissioned by BlackRock released today shines a light on the index investing habits of financial advisers and wealth managers: how and why they are using ETFs and index mutual funds, as well as how they are reacting to regulation and technological change.



‘Knowledge Effect’ ETF surpasses $100m in assets

Oct 24th, 2017 | By
‘Knowledge Effect’ ETF surpasses $100m in assets

Colorado-based Knowledge Leaders Capital has announced that its Knowledge Leaders Developed World ETF (NYSE Arca: KLDW) has surpassed $100 million in assets under management. The New York-listed ETF is linked to the Knowledge Leaders Developed World Index, an equal-weighted index of companies identified through a proprietary process that capture the so-called ‘Knowledge Effect’.



Invesco acquires Guggenheim’s ETF business

Sep 29th, 2017 | By
Martin L. Flanagan, president and CEO of Invesco

Invesco, the asset manager behind the PowerShares brand of ETFs, has agreed a deal to acquire Guggenheim Investments’ ETF business for $1.2 billion in cash. The business includes around $37 billion of assets under management, comprising ETFs such as the $13.8 billion Guggenheim S&P 500 Equal Weight ETF (RSP) and the popular BulletShares suite of defined-maturity bond ETFs. Martin L. Flanagan, president and CEO of Invesco, said: “Guggenheim Investments’ ETF business is highly complementary to Invesco’s, and will enable us to provide one of the industry’s most comprehensive and innovative ranges of smart beta ETFs.”



MSCI to include China A shares in EM and ACWI indices

Jun 21st, 2017 | By
MSCI to include China A shares in EM and ACWI indices

MSCI has announced that it will include China A shares in its widely followed MSCI Emerging Markets and MSCI ACWI indices from June 2018. Remy Briand, Managing Director and Chairman of the Index Policy Committee at MSCI, said, “International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion.”



LSE bolsters FTSE Russell franchise with acquisition of Citi Fixed Income Indices

May 30th, 2017 | By
LSE bolsters FTSE Russell franchise with acquisition of Citi's Yield Book and Fixed Income Indices

London Stock Exchange Group (LSEG) has agreed to acquire The Yield Book and Citi Fixed Income Indices from Citigroup for $685 million in cash. The acquisition represents a significant opportunity for LSEG to enhance its fixed income data and analytics capabilities and strengthen its FTSE Russell index franchise, bringing an increase in benchmark AUM of around $2 trillion. The deal substantially bolsters FTSE Russell’s footprint and product offering in the fixed income space – one of the fastest-growing segments of the ETF industry – and follows the acquisition of the Russell Indexes business in 2014.



Platforms too passive in the provision of ETFs, finds Platforum

Oct 11th, 2016 | By
Platforms too passive in the provision of ETFs, finds Platforum

Fund platform research firm Platforum has published its latest UK fund distribution report on passives, ETFs and smart beta. The research reveals that while tracker fund assets have doubled since the implementation of the RDR, supported by widespread take-up by financial advisers, ETF adoption by financial advisers has been significantly less pronounced.



What’s in a name? For European ETFs, a lot of confusion

Sep 29th, 2016 | By
Simon Barriball, Head of ETP Trading Europe at ITG

By Simon Barriball, Head of ETP Trading Europe at ITG.

The name should say it all “Exchange Traded Fund”. You would reasonably expect that a fund describing itself as an Exchange Traded Fund would do just that – trade on exchange. The reality in Europe is quite different. Best estimates of European trading are that 50-70% of all ETF trading is off exchange on an OTC basis. One could therefore argue that ETFs fail to live up to their name. We should ask why this is and does it really matter?



Study reveals varying ETF preferences of older and younger investors

Sep 6th, 2016 | By
Study reveals varying ETF preferences of older and younger investors – Millenials vs Gen X vs Baby Boomers

Online broker E*Trade has published a study showing how exchange-traded fund preferences vary by age. Based on a survey of 946 self-directed active investors with at least $10,000 in an online account, it found that Millennials are more likely than Baby Boomers to show interest in a range of less mainstream ETFs, including commodity and foreign currency ETFs. Boomers, meanwhile, prefer dividend ETFs over any other type. Similarly, Millennials are interested in style ETFs, such as growth or value, and those focused on different market-cap brackets, such as mid- or small-cap, while Boomers are distinctly less keen.



ETFs largely unmoved by Jackson Hole speech

Aug 30th, 2016 | By
ETFs largely unmoved by Jackson Hole speech

The case for raising US interest rates has “strengthened”, the chairwoman of the Federal Reserve has said. Speaking at the Fed’s annual meeting at Jackson Hole, Wyoming, Janet Yellen was cautiously positive on the US economy and said “the case for an increase in the federal funds rate has strengthened in recent months”. Yellen’s comments have not come as much of a surprise, however, and ETFs were fairly quiet following the speech, with few major moves directly triggered by her comments. ETFs tracking the US utilities sector, such as SSGA’s $8 billion NYSE-listed Utilities Select Sector SPDR ETF (XLU), were perhaps the most obvious casualties of the speech, falling around 2.5%.



ETFs continue to attract the money

Aug 23rd, 2016 | By
ETFs continue to attract the money - John Redwood

John Redwood, Charles Stanley’s Chief Global Strategist, looks at the rising popularity of exchange-traded funds.

By the end of June this year, exchange-traded funds (ETFs) had swollen to more than $3 trillion worth of investments. In recent years more individuals and institutional investors have built portfolios around ETFs. More institutions have used ETFs to gain exposure rapidly to a given asset class or geographical area. More have introduced some ETFs into portfolios where they lack the expertise on the individual shares or commodities or properties they might otherwise buy.