ETF and Index News

MSCI reports fear of extreme events rising higher

Sep 14th, 2017 | By
MSCI reports fear of extreme events rising higher

By George Bonne, executive director of equity factor research, MSCI.

In May, we wrote that despite the generally low market volatility that has prevailed this year, investors were paying relatively high prices for downside protection as measured by “options skew” – the difference in implied volatility between an out-of-the-money option and an at-the-money option. Low market volatility largely continued through the summer, but how has options skew behaved – has it fallen to more “normal” levels?



Solactive launches US large cap equal weight index

Sep 14th, 2017 | By
Solactive launches US investment grade corporate bond index

Solactive has launched the Solactive US Large Cap Equal Weight Index, a new index that tracks an equal weight exposure to the US large-cap equity segment. The index will include the 500 largest US-domiciled equities and will underlie the forthcoming Goldman Sachs Equal Weight US Large Cap Equity ETF (Bats: GSEW). Steffen Scheuble, CEO of Solactive, said: “We’re excited to once again serve as an index provider to Goldman Sachs through the creation of such a timely and unique index.”



Franklin Templeton: Bringing the human factor to index investing

Sep 13th, 2017 | By
Chandra Seethamraju, vice president of systematic modelling, Franklin Templeton.

By Chandra Seethamraju, vice president of systematic modelling, Franklin Templeton.

For decades, Franklin Templeton has been a vocal advocate for active management. We believe the skills and insight human oversight brings should play a crucial role in the investment process. The emergence of risk-factor investing and the evolution of traditional indexes have opened up fresh opportunities to bring a human touch to what has traditionally been considered the passive exchange-traded fund space.



Global ETF assets close in on $5 trillion

Sep 13th, 2017 | By
Deutsche introduces GBP-hedged MSCI World ETF to Switzerland

ETFGI, a London-based ETF research and consultancy firm, has released the results of its monthly ETF landscape report showing assets invested in globally-listed ETFs have grown 35.3% in the first eight months of 2017 to reach a new record high of $4.8 trillion. On current momentum, global ETF assets look set to reach $5tn in the next few months.



European ETF flows eclipse 2016 total

Sep 13th, 2017 | By
Europe-listed equity ETFs saw inflows of $1.6bn during the month, double the amount seen during August 2016.

ETFs and ETPs listed in Europe gathered $4.3bn in net new assets during August, marking 35 consecutive months of positive net inflows and a record level of $78.3bn in year-to-date (YTD) net gatherings, according to ETF industry consultant ETFGI. This figure is significantly higher than the $39.9bn in net inflows recorded at this point last year, and $22.6bn more than the $55.7bn gathered during the whole of 2016.



MSCI reports all factor indices positive in August

Sep 13th, 2017 | By
MSCI reports all factor indices positive in August

MSCI has released its index performance report for August 2017, breaking down the best and worst performing equity indices over this period by country, factor and sector. The index provider, which is one of the leading providers of equity indices to the exchange-traded fund industry, reports that all of its factor-based indices generated a positive return in August with the best performing factor during August being quality (1.4%) and the worst, enhanced value (0.2%).



Solactive introduces Intuitive Beta index suite with three thematic launches

Sep 12th, 2017 | By
Solactive introduces Intuitive Beta index suite with three thematic launches

Frankfurt-based index provider Solactive has launched the Solactive Intuitive Beta Index family by rolling out three smart beta indices constructed around themes including workforce efficiency, value investing and corporate longevity. Each of the indices target exposure to its specific theme within the US large cap equity universe.



ETF allocations up 70% over five years, finds Charles Schwab

Sep 12th, 2017 | By
Heather Fischer, vice president, ETF and mutual fund platforms, Charles Schwab

The importance of ETFs within an average investor’s portfolio has increased substantially over the past five years, according to the 7th annual survey of investor attitudes by Charles Schwab. Heather Fischer, ETF and mutual fund platforms, Charles Schwab, commented: “As investors have become more familiar with the versatility of ETFs, their confidence levels have grown.”



Twelve new ETFs listed on London Stock Exchange in August 2017

Sep 12th, 2017 | By
Twelve new ETFs listed on London Stock Exchange in August 2017

Twelve new ETFs were listed on London Stock Exchange in August 2017, bringing the number of new listings year-to-date to 89. ETF issuers bringing new funds to market in London during August included First Trust, BlackRock, Deutsche Asset Management, Source and UBS.



Deutsche to cross-list core equity & corporate bond ETFs to LSE

Sep 12th, 2017 | By
Deutsche to cross-list core & corporate bond ETFs to LSE

Deutsche Asset Management is planning to cross-list four ETFs, two corporate bond and two low-cost ‘core’ equity funds, on London Stock Exchange. Simon Klein, head of passive distribution, EMEA and APAC, Deutsche Asset Management, says the cross-listings “expand the opportunities for investors in ETF format” and help “make these funds available to as wide an audience as possible”.