The Bank of Japan (BoJ) has approved a massive multi-asset purchase programme, including the purchase of billions of dollars worth of exchange-traded funds (ETFs), designed to stimulate the Japanese economy. The BoJ will purchase Topix and Nikkei 225 ETFs so that the amount outstanding will increase at an annual pace of 1 trillion yen – approximately $10.5 billion per year.
NYSE Euronext Indices and Bloomberg New Energy Finance have re-branded their family of clean energy indices to better represent the involvement of both NYSE and Bloomberg. The family is now known as NYSE Bloomberg Clean Energy Indexes. The indices were launched in April last year and are based on Bloomberg New Energy Finance’s database of organisations involved in clean energy and related sectors. The database includes more than 1,000 listed companies with at least 10% or more of their activity in clean energy.
Credit Suisse has launched a new exchange-traded note (ETN) that offers investors exposure to the performance of gold, as represented by SPDR Gold Shares (GLD), in addition to monthly income distributions. Listed on the Nasdaq exchange, the Credit Suisse Gold Shares Covered Call ETN (GLDI) becomes the first exchange-traded product in the US to deploy a covered call strategy on gold.
In a recent research report, analysts at AXA Investment Managers came out bullish on Asian emerging market equities, putting it among their top calls. One way to implement this trade is via exchange-traded funds (ETFs) linked to the MSCI Emerging Markets Asia Index (MSCI EM Asia), an index which targets the precise region the AXA analysts are positive on.
Market Vectors has announced that the NYSE Arca-listed Market Vectors Solar Energy ETF (KWT) is to adopt an in-house index. The fund currently tracks the Ardour Solar Energy Index, an index designed by alternative energy specialists Ardour Capital Investments, but will switch to the Market Vectors Global Solar Energy Index in March.
Exchange-traded funds (ETFs) linked to the Nikkei, Topix and MSCI Japan finished the week strongly after the Japanese cabinet, led by new Prime Minister Shinzo Abe, approved a 10.3 trillion yen ($116 billion) stimulus package to bolster the country’s long-suffering economy. Topix-based ETFs, such as the Lyxor ETF Japan Topix, have now advanced 24% since 14 November 2012 when elections were announced.
BlackRock, owner of iShares, has agreed to acquire the exchange-traded funds (ETF) business of Credit Suisse, further strengthening its position in Switzerland and wider Europe. The transaction comprises assets under management of $17.6 billion across 58 funds. Laurence D. Fink, Chairman and CEO of BlackRock, said: “This transaction keeps with BlackRock’s growth strategy in the region and provides the necessary scale and presence in the market to further enhance our product suite and deliver client solutions in Switzerland and all of Europe.”
Emerging ASEAN markets such as the Philippines, Indonesia and Thailand continue to offer good opportunities for investors looking for fast-growing economies with robust fundamentals. Significant growth in the size and wealth of the middle-class, combined with an expected acceleration in infrastructure investment, helps build a compelling, multi-year case for the region’s equities. For investors looking to buy into emerging ASEAN, exchange-traded funds (ETFs) provide an effective means of achieving liquid, targeted exposure at low cost.
China and India are the world’s most populous nations and its principal agents of economic growth. In 2013 they are expected to grow by 8.2% and 6.0% respectively, versus 1.5% for developed economies. While both countries deserve a place in most passive long-term growth portfolios, for active ETF investors an overweight position in China in the short term, giving way to India in the longer term, could be how the smart money flows.
The ProShares Merger ETF (MRGR), an innovative new fund from US-based alternative exchange-traded fund (ETF) specialist ProShares, is scheduled to list on the BATS Exchange on 13 December. The fund is designed to track the performance of the recently launched S&P Merger Arbitrage Index, a risk arbitrage strategy that exploits commonly observed price changes associated with a global selection of publicly announced mergers, acquisitions or other corporate reorganisations.