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Legg Mason unveils debut ETFs

Jan 5th, 2016 | By
Legg Mason launches international high dividend low volatility ETF

Legg Mason, a global asset management firm, has unveiled its debut exchange-traded fund line-up of four outcome-oriented index-based ETFs launched in partnership with its investment affiliate QS Investors. The four ETFs are branded under the Legg Mason name and began trading on the Nasdaq Stock Market on December 29, 2015. Rick Genoni, Head of the ETF business at Legg Mason, said: “We are excited to begin building our ETF offering and will continue to identify ways in which we can capitalize on the investment strengths of the Legg Mason investment affiliates.” The firm plans to launch additional ETF products in the coming months.

Oil price falls will benefit markets in 2016, says ETF issuer Source

Jan 5th, 2016 | By
Oil price falls will benefit markets in 2016, says ETF issuer Source

Despite the negative fallout from plummeting oil prices, the net effect will be positive for markets and the global economy in 2016, according to Source, one of the largest providers of ETFs in Europe. Paul Jackson, Head of Multi-Asset Research at Source, commented: “Based on recent evidence it seems that markets prefer an elevated oil price. However, this should not be the case. Of course, low prices cause distress for oil producers and their suppliers but everybody else benefits. For example, the fact that in the first 11 months of 2015 China imported 9% more oil than the preceding year but has paid 41% less for it means that there has been an enormous transfer of spending power to China.”

BlackRock’s iShares leads ETF industry with $130bn in new flows in 2015

Jan 4th, 2016 | By
iShares reports record inflows driven by bond and core ETFs

BlackRock’s exchange-traded funds business, iShares, led the global ETF industry in 2015 by winning $130bn in new flows. The ETF giant – the firm has more than $1 trillion in ETF assets – set new growth records in the US and Europe, and won 42% of flows in both markets. The overall industry expanded at a record-breaking $347bn in 2015. Mark Wiedman, Global Head of iShares at BlackRock, said: “Despite lacklustre equity markets in 2015, the global ETF industry set a new growth record of $347bn. Institutional and retail investors are using ETFs more and more, whether as tools to express a view on almost any financial market, or for long-term core investments.”

Guggenheim launches smart beta yield-weighted Dow Jones ETF

Dec 17th, 2015 | By
Guggenheim changes name of actively managed $1bn enhanced short duration ETF

Guggenheim Investments, a US-based provider of exchange-traded funds, has announced the launch of the smart beta Guggenheim Dow Jones Industrial Average Dividend ETF (DJD). “DJD will track the DJIA Yield Weighted index, which is calculated using a yield-weighted methodology that weights all securities of the DJIA by their 12-month dividend yield,” said William Belden, Guggenheim Investments Managing Director and Head of ETF Business Development. Guggenheim was among the early pioneers of smart beta ETFs with the introduction of the Guggenheim S&P 500 Equal Weight ETF (RSP) in 2003.

Bank of China launches Europe’s first RMB-denominated China A share ETF on CEINEX

Nov 18th, 2015 | By
Bank of China launches Europe's first RMB-denominated China A share ETF on CEINEX

Bank of China International (BOCI) , in partnership with German investment bank Commerzbank, has announced the launch of Europe’s first Renminbi-denominated China A Share ETF: the BOCI Commerzbank Shanghai Stock Exchange 50 A Share Index UCITS ETF (BOC1). The ETF has made its debut at the inauguration of the Frankfurt-headquartered China Europe International Exchange (CEINEX). Li Tong, Chief Executive Officer of BOCI, said: “We are honoured to launch Europe’s first RMB-denominated A Share ETF on the day of CEINEX’s inauguration. It boosts the opening up of China’s capital market and RMB internationalization, opening a new chapter in our overseas business development.”

BlackRock partners with Euroclear and Clearstream to migrate 20 iShares ETFs to international settlement structure

Nov 12th, 2015 | By
BlackRock partners with Euroclear and Clearstream to migrate 20 ETFs to international settlement structure

BlackRock, Euroclear and Clearstream have partnered to migrate 20 iShares ETFs to an international issuance and settlement structure. Under this structure, the issuance and settlement of the ETFs are carried out by an international central securities depository (ICSD), such as Euroclear and Clearstream. Issuing and settling in a single pan-European location simplifies the post-trade process of ETFs, enabling market makers to offer more competitive trading spreads to investors, and also boost overall liquidity. BlackRock issued the first ETF with an international security structure in 2013.

Boost adopts S&P 500 for 3x short and leveraged US large-cap ETPs

Jul 23rd, 2015 | By
UBS launches currency-hedged US multifactor ETF on SIX

Boost ETP, a leading European provider of short and leveraged exchange-traded products and a subsidiary of WisdomTree Europe, has changed the underlying index for its 3x short and leveraged US large-cap equity products. The products were previously linked to the Russell 1000 Index but are now referenced to the more widely followed S&P 500 Index. In line with the index change and to reflect the superior brand recognition of the S&P 500, the two ETPs have been renamed Boost S&P 500 3x Short Daily ETP (3USL) and Boost S&P 500 3x Leverage Daily ETP (3USS).

ETFs and hedge funds: At what price performance?

Jul 22nd, 2015 | By
Tim Edwards, Senior Director, Index Investment Strategy, S&P Dow Jones Indices.

With ETFGI announcing that the ETF market has exceeded hedge funds this week, Tim Edwards, Senior Director of Index Investment Strategy at S&P Dow Jones Indices looks at why this might be the case. By replicating a hedge fund strategy and comparing it to the HFRI Weighted Composite benchmark he notes: After fees, the hypothetical hedge fund performs more or less in line with the benchmark; and the average hedge fund looks like a fixed blend of cheap investments, but at a high cost.

Deutsche AWM launches Europe’s first China sovereign bond ETF

Jul 14th, 2015 | By
T3 Index unveils 'E8' emerging markets foreign exchange benchmark

Deutsche Asset & Wealth Management (Deutsche AWM) has launched Europe’s first ETF to provide investors with physical exposure to China’s domestic sovereign bond market. The db x-trackers II Harvest CSI China Sovereign Bond UCITS ETF (DR), which has been listed on the Deutsche Börse with a London Stock Exchange listing to follow, is a physical replication ETF that tracks the CSI Gilt Edged Medium Term Treasury Note Index, an index reflecting the performance of tradeable Renminbi-denominated medium-term debt issued by the government of the People’s Republic of China.

SSGA introduces suite of S&P 500 sector ETFs on Deutsche Börse

Jul 9th, 2015 | By
Landmark for European ETFs as iShares S&P 500 fund crosses $20bn milestone

State Street Global Advisors (SSGA), the asset manager behind the SPDR brand of exchange-traded funds, has announced the launch of nine US sector equity ETFs on the Deutsche Börse. The funds are based on the blue-chip S&P 500 Index and cover the consumer discretionary, consumer staples, energy, financials, healthcare, industrials, materials, technology and utilities sectors. The funds provide investors with the opportunity to manage US sector exposures through different stages of the economic cycle, as well as a vehicle to tilt portfolios and gain targeted exposure to specific industries on an ad-hoc basis.