Investors should avoid looking exclusively at fund fees when selecting exchange-traded funds, according to a panel of industry experts who addressed an event held by HSBC Global Asset Management last week. The speakers explained that while choosing an ETF with a competitive fee structure is undoubtedly important, investors should not discount the tracking precision of the fund as ETFs which do not perform well by this second metric potentially run the risk of consistently lagging their underlying indices by a notable degree.
French equity markets reacted bullishly to the first round of Presidential elections with the Lyxor CAC 40 UCITS ETF (Euronext: CAC) gaining 4.2% the day after the results were announced. With polls indicating Macron, the pro-Europe centre-left candidate, has a 20-point lead over leader of the far-right National Front Le Pen in the two-way run-off, France looks set to have a pro-business, moderate president next month.
The global bond ETF industry achieved its best quarter on record with $44.5 billion of inflows during Q1 2017, according to analysis by BlackRock. Stephen Cohen, head of fixed income beta at BlackRock, highlighted some of the global trends seen in the space since the start of the year, including strong appetite for investment grade credit, emerging market debt and Treasury bond funds.
ETFs and ETPs listed globally experienced record net inflows of $66.3 billion during March, according to research from ETF industry consultant ETFGI. The strong net gatherings marked the 38th consecutive month of positive net inflows within the space.
Lyxor has launched a new ETF, offering currency-hedged exposure to the Stoxx Europe 600 Index, on Deutsche Börse’s Xetra and Frankfurt exchanges. The Lyxor Stoxx Europe 600 UCITS ETF Monthly Hedged D-EUR (STXH) tracks the most liquid, large, mid and small-cap companies in European industrialised countries while minimising the effect of fluctuations between index component currencies and the euro.
Market maker Virtu Financial has announced it has entered into a definitive agreement to acquire KCG Holding. The deal, worth around $1.4 billion, has been unanimously approved by the directors of each company.
Direxion has lifted the temporary suspension on creation units for the Daily Junior Gold Miners Index Bull 3X Shares ETF (NYSE: JNUG) that had been in place since 13 April. The suspension and subsequent return to normal trading were linked to recent regulatory issues surrounding the MVIS Global Junior Gold Miners Index, which underlies JNUG, and the VanEck Junior Gold Miners ETF (NYSE: GDXJ), which tracks the same index.