Latest news

FTSE Russell launches asset allocation indices

FTSE Russell launches asset allocation indices

FTSE Russell has unveiled the FTSE Market Based Allocation Index Series, a new suite of multi-asset indices whereby the asset allocation mix for each index reflects the average asset allocation levels of real-world multi-asset funds as reported in Morningstar’s fund database.

Cloud Computing ETFs

First Trust launches cloud computing ETF in Europe

First Trust Global Portfolios has launched the First Trust Cloud Computing UCITS ETF (FSKY LN) in Europe, providing thematic exposure to companies that are actively involved in the cloud computing space. The fund is linked to the ISE Cloud Computing Index which also underlies a US-listed First Trust ETF that has accrued over $1.9 billion in assets under management since launching in 2011.

Invesco launches Europe’s cheapest German mid-cap ETF

Invesco launches Europe’s cheapest MDAX ETF

Invesco has launched the Invesco MDAX UCITS ETF (DEAM GY) on Deutsche Börse’s Xetra and Frankfurt exchanges. The fund, which comes with a total expense ratio (TER) of 0.19%, becomes the cheapest ETF in Europe to offer exposure to Germany’s main mid-cap equity index – the MDAX.

BMO expands line-up with seven new ETFs

BMO expands line-up with seven new ETFs

BMO Asset Management has launched seven new ETFs on Toronto Stock Exchange. The new funds include three asset allocation ETFs which invest in other BMO equity and fixed income ETFs to provide globally diversified portfolios. The other four ETFs provide exposure to different segments of the US equity and fixed income markets.

Fixed Income

DWS: How fixed income ETFs bring tradability to an illiquid market

Eric Dutram, Assistant Vice President, DWS.

By Eric Dutram, Assistant Vice President, DWS.

ETFs are often hailed as a major financial innovation. Seen by some as next-generation mutual funds, these securities are generally considered to be more tax efficient than their fund cousins while providing investors with intraday liquidity as well.

Aware debuts with short-duration bond ETF

John Orner, President and CIO of Aware Asset Management.

Newcomer Aware Asset Management has launched its first ETF by listing the Aware Ultra-Short Duration Enhanced Income ETF (AWTM US) on NYSE Arca. The fund leverages Aware’s experience in managing insurance company assets to provide an actively managed portfolio of short-duration bonds. “We developed this ETF as an alternative to earnings credits, commercial paper, and money market funds,” said John Orner, President and CIO of Aware Asset Management. “We believe we have built a liquid, diversified, cost-effective solution that seeks to preserve capital while maximizing current income.”

Alternatives / Multi-Asset

Daiwa launches core Japan REIT ETF

Japan reit etfs

Daiwa Asset Management has launched the Daiwa Tokyo Stock Exchange REIT Core Index ETF (2528 JP) on Tokyo Stock Exchange (TSE). The fund is linked to the Tokyo Stock Exchange REIT Core Index, providing exposure to real estate investment trusts (REITs) listed on TSE.

Vanguard Canada unveils two new asset allocation ETFs

Vanguard Canada asset allocation ETFs

Vanguard Investments Canada has listed two new ETFs on Toronto Stock Exchange that are part of the firm’s asset allocation suite of funds. The Vanguard Conservative Income ETF Portfolio (VCIP CN) and Vanguard All-Equity ETF Portfolio (VEQT CN) provide exposure to globally diversified portfolios composed of Vanguard’s own passive ETFs.

Commodities

WisdomTree: El Niño’s impact on agricultural commodities

WisdomTree Agricultural commodities el nino ETFs

By Nitesh Shah, Director, Research at WisdomTree.

El Niño refers to a climate cycle in the Pacific Ocean that has a global impact on weather patterns. The name, which loosely translates to ‘Christ child’, traces its origin back to Peruvian fisherman in the 1600s, who observed that fish yields would often decline around Christmas time as seawater temperatures rose.

Gold ETFs record strong inflows amid market uncertainty

Gold ETFs record strong net inflows amid market uncertainty

Holdings in global gold-backed ETFs listed globally rose by 72 tonnes in January, equivalent to $3.1 billion in net inflows, according to the World Gold Council. The organization notes that inflows were linked to strategic allocations as investors sought to navigate ongoing market uncertainty.

Equities

Pacific Global debuts with actively managed US equity income ETF

Pacific Global debuts with actively managed US equity income ETF

Newcomer Pacific Global Asset Management has launched the Pacific Global US Equity Income ETF (USDY US) on NYSE Arca. Sub-advised by affiliate Cadence Capital Management, the actively managed ETF invests in US companies with above average or improving dividends.

China: Portfolio management in the year of the pig

Lyxor China ETFs

By Chanchal Samadder, Head of Equity ETFs at Lyxor Asset Management.

It’s the year of the pig in China which marks the end of the 12-year cycle of the animals of Chinese astrology. As such, it’s a perfect time to look back, learn from the past, and prepare for the new cycle.

John Hancock cuts fees on multifactor sector ETFs

Andrew G. Arnott, President and CEO of John Hancock Investments

John Hancock Investments has reduced the expense ratios for its nine multifactor US sector ETFs sub-advised by smart beta specialist Dimensional Fund Advisors. “Providing shareholder value is intrinsic to John Hancock Investment’s multimanager model,” said Andrew Arnott, President and Chief Executive Officer, John Hancock Investments. “We are keenly aware of the landscape and how competitive fees, in addition to performance, can impact a portfolio.”

ETF and Index News

MSCI: What Fed monetary policy has meant for factors

MSCI: What Fed monetary policy has meant for factors

By Abhishek Gupta, Vice President, Quantitative Equity Research, MSCI, and Raina Oberoi, Executive Director, Head of Equity Solutions Research for Americas, MSCI.

Today, many market participants expect a neutral rate environment in 2019, with possible rate cuts in 2020. This has implications for investors who may be assessing their factor allocations in the context of the current and potential interest-rate regimes.

Solactive unveils suite of AI-driven ESG indices

AI Artificial intelligence esg etfs indices

German index provider Solactive and San Francisco-based artificial intelligence (AI) company Truvalue Labs have teamed up to launch a suite of environmental, social, and governance (ESG) indices that are driven by AI.

SPDR ETFs: Calculating the high cost of active managers who underperform

Active vs passive etfs costs

By Matthew J. Bartolini, Head of SPDR Americas Research.

When it comes to active management, underperformance can be costly for investors relying on these strategies to beat the market, with 2018 being the latest example. Not only did global equity markets post its worst return since 2008, but 37% of active equity managers underperformed their benchmark in 2018.