All entries by this author

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.

Global ETF industry pulls in record $152 billion in first half of 2015

Jul 8th, 2015 | By
Dow Jones ETFs in focus as index reaches historic 20,000 milestone

A record level of $152 billion in net new assets was gathered by exchange-traded funds and exchange-traded products listed globally in the first half of 2015, according to data from industry consultants ETFGI. The figure surpasses the prior record of $130 billion gathered in the first half of 2014. At the end of June 2015, the global ETF/ETP industry had 5,823 ETFs/ETPs, with 11,295 listings, assets of $2.971 trillion, from 259 providers listed on 62 exchanges in 51 countries. iShares gathered the largest net inflows over the period, with $52.1 billion, followed by Vanguard, WisdomTree and Deutsche Asset & Wealth Management.

The Whole Story: Factors + Asset Classes

Jul 2nd, 2015 | By
Jason Hsu, Research Affiliates

By Jason Hsu, Research Affiliates. Every year we invite some of the investment industry’s most creative thinkers to speak about their work at the Research Affiliates’ Advisory Panel conference. Along with Nobel laureates Vernon Smith and Harry Markowitz, the speakers at our 14th annual meeting included Campbell Harvey, Richard Roll, Andrew Karolyi, Bradford Cornell, Andrew Ang, Charles Gave, Tim Jenkinson, and our very own Rob Arnott. The richness of the speakers’ presentations beggars any attempt to summarize them; I’ll limit myself to the points I found most intriguing and illuminating. I also acknowledge that this account may reflect my own capacity for misinterpretation as much as the genius of the speakers’ actual research.