‘ United States and Canada ’

MSCI: How easy is it to track a bond market index?

Feb 21st, 2018 | By
Andy Sparks, head of fixed income research strategies, MSCI

By Andy Sparks, head of fixed income research strategies, MSCI.

Many investors may have only a qualitative understanding of the ability of passive fund managers to track the returns of a fixed-income index. Our analysis uses tracking error to provide a quantitative measure of the ease – or difficulty – of consistently tracking an index. We find generally low to moderate tracking error across broad parts of the bond market. Our analysis also suggests that less liquid and higher volatility sectors (such as high yield) tend to have higher tracking error.



Direxion introduces lightly leveraged “Portfolio+” ETF suite

Feb 19th, 2018 | By
Direxion introduces lightly leveraged “Portfolio+” ETF suite

US-based leveraged and inverse ETF specialist Direxion has debuted a new range of ETFs, under a new brand called “Portfolio+ ETFs”. The ETFs provide lightly leveraged exposure to their underlying indices. Andy O’Rourke, Managing Director at Direxion, said, “Over time, a small amount of added exposure can make a significant difference. At the right price point, just a 25% boost allows advisors who already manage a diversified strategy to seek out additional risk-adjusted returns in a manageable way. “



Canadian ETF industry see highest asset growth in almost two years

Feb 19th, 2018 | By
Canada Toronto ETFs

Assets invested in ETFs listed in Canada grew by $4.9 billion in January 2018 to reach a record high of $122bn at the end of the month, according to ETF industry consultants ETFGI. The surge in assets represents the greatest absolute monthly increase for the Canadian ETF industry in almost two years.



Vanguard unveils suite of actively managed factor ETFs in US

Feb 19th, 2018 | By
Vanguard CEO Tim Buckley.

Vanguard has launched six new factor-based ETFs — the firm’s first actively managed ETFs in the US — on Cboe ETF Marketplace. The suite consists of five single factor funds, targeting exposure to the minimum volatility, value, momentum, liquidity, and quality factors, and a multi-factor approach, each within the US equities universe. Vanguard CEO Tim Buckley, commented, “The newly launched factor funds represent a differentiated approach – disciplined, rules-based, targeted exposure to factors – along with Vanguard’s low costs.”



Severe weather causing a storm in agricultural ETPs

Feb 19th, 2018 | By
Severe weather causing a storm in agricultural ETPs

London-based commodity ETP specialist ETF Securities has reported that weekly inflows into its agricultural ETPs reached their largest levels ever last week, totalling $54.7 million. The firm notes that the majority of agricultural commodities are trading higher in 2018 owing to severe weather conditions affecting forecasts of supply.



Mirae anchors US presence by buying ETF provider Global X

Feb 16th, 2018 | By
Taeyong Lee, President, Global Head of ETFs for Mirae Asset

Global X, the seventeenth-largest US-based ETF issuer, has entered into an agreement to sell 100% of its fully diluted shares to Mirae Asset Global Investments, an independent financial services business based in Asia. “With Global X on board, we are now connecting one of the most successful US ETF firms to a prominent Asian-based global ETF manager, creating a powerful ETF platform.” said Taeyong Lee, president, global head of ETFs for Mirae Asset.



Invesco to move to one global brand

Feb 16th, 2018 | By
Marty Flanagan, President and CEO of Invesco

Invesco has announced that it is moving to a unified global brand. The company will now be referred to as Invesco everywhere it does business with the brands affected by the change being Perpetual, Trimark and Invesco’s ETF business PowerShares. Marty Flanagan, president and CEO of Invesco, said, “Although we are moving to a unified brand, we will preserve the time-tested and distinctive investment perspectives, processes and approaches of our many investment teams across the globe.”



PIMCO: Regime change in bond markets?

Feb 15th, 2018 | By
Gene Frieda, executive vice president and global strategist at PIMCO.

By Gene Frieda, executive vice president and global strategist at PIMCO.

With a steady repricing of global bond markets having contributed to a sharp plunge in global stock markets, there could be a whiff of a new era in the air. Given the failure of both markets and central banks to forecast inflation accurately, we should all be humble about the level of precision attached to the timing or nature of the bond market’s next chapter.



ETFs attract €96.6 billion net inflows in January, finds Amundi

Feb 15th, 2018 | By
ETFs attract €96.6 billion net inflows in January, finds Amundi

Global ETF flows continued their positive trend in January 2018, with an increase of €96.6 billion, according to data from European ETF provider Amundi. The US market gained most of the inflows, at €78.6bn, against €13.2bn for the European market. Research by EY suggests that ETF assets have the potential to hit $7.6 trillion by the end of 2020.



Deutsche adds USD high-yield corporate bond ETF to fixed income suite

Feb 15th, 2018 | By
Deutsche adds USD high-yield corporate bond ETF to fixed income suite

Deutsche Asset Management has expanded its fixed income ETF range with the listing of the db x-trackers USD High Yield Corporate Bond UCITS ETF (XUHY LN) on London Stock Exchange and Deutsche Börse. Blanca Koenig, Deutsche AM fixed income ETF strategist, said, “The new USD high-yield ETF expands the toolkit available to investors to address today’s market challenges.”