Chris Pigott, Senior Vice President, BBH Hong Kong

Latest news

Brown Brothers Harriman predicts robust ETF growth in China

China’s ETF market is poised to experience robust growth over the next year, according to research from ETF custodian and administrator Brown Brothers Harriman (BBH). Chris Pigott, Senior Vice President, BBH Hong Kong, commented, “ETFs are becoming an increasingly important component of institutional investors’ portfolios across the region. Looking forward, regulatory development and enhanced ETF market infrastructure are areas of focus that will provide the foundation to support the expected growth.”

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Latest news

IndexIQ’s merger arbitrage ETF reaches $1bn AUM milestone

IndexIQ’s merger arbitrage ETF reaches $1bn AUM

New York-based IndexIQ has announced that the IQ Merger Arbitrage ETF (MNA US), which provides returns similar to merger arbitrage hedge funds, has surpassed $1 billion in assets under management. Jon Zimmerman, Chief Operating Officer of IndexIQ, commented, “IndexIQ was founded with the belief that investment management needed to be democratized, allowing investors and advisors of all types to access institutional-quality strategies.”

Goldman Sachs unveils actively managed ultra-short bond ETF

Goldman Sachs unveils actively managed ultra-short bond ETF

Goldman Sachs has launched the Goldman Sachs Access Ultra Short Bond ETF (GSST US) on Cboe BZX. The actively managed fund provides exposure to high quality fixed income securities while maintaining portfolio duration of less than one year.

Evolve Funds launches US-focused cannabis ETF on NEO

Evolve Funds launches US cannabis industry ETF

Evolve Funds Group has launched a new actively managed ETF – the Evolve US Marijuana ETF (USMJ CN) – on Canada’s NEO Exchange. The fund becomes the world’s first ETF to focus on companies poised to benefit from growth in the US marijuana industry. Raj Lala, President and CEO at Evolve, said, “The cannabis opportunity in the US is similar to that of Canada a couple of years ago, but in many respects has the potential to be exponentially larger.”

Dan Ahrens AdvisorShares

AdvisorShares to launch active pure-play cannabis ETF

AdvisorShares has announced the upcoming launch of the AdvisorShares Pure Cannabis ETF (YOLO US). The fund, which is expected to list on NYSE Arca on Thursday 18 April, is set to become the first actively managed ETF in the US to offer dedicated cannabis exposure. “We feel cannabis stands poised to become a market disruptor and long-term emerging growth opportunity, especially as societal, business, and regulatory landscapes evolve,” said Dan Ahrens, Managing Director at AdvisorShares.

Fixed Income

BlackRock: Decoding the bond market’s mixed messages

Mixed message: What the bond markets are saying

By Karen Schenone, Fixed Income Product Strategist, BlackRock.

The recent yield curve inversion has many market watchers wondering whether recession is on the horizon. The corporate bond market, however, tells a different story.

Four factors fuelling Europe’s ETF fixed income surge

Stéphane Degroote, Head of ETFs & Derivatives Business, EMEA at FTSE Russell

By Stéphane Degroote, Head of ETFs & Derivatives Business, EMEA at FTSE Russell.

ETF usage among institutional investors in Europe has been on the rise, and fixed income ETFs have been a key driver behind this growth. European institutions surveyed in a recent Greenwich Associates study indicated that fixed income ETFs as a percentage of their portfolios more than doubled from 2017 to 2018. As fixed income ETF inflows in Europe continue to pick up steam, we’ve identified four primary reasons behind this trend.

Alternatives / Multi-Asset

Transamerica adds EM ETF to DeltaShares managed risk suite

Tom Wald Transamerica CIO

Transamerica Asset Management has added a new ETF to its ‘DeltaShares’ line-up of managed risk funds. The DeltaShares S&P EM 100 & Managed Risk ETF (DMRE US), listed on NYSE Arca, provides exposure to the 100 largest emerging market companies while seeking to reduce downside risk by dynamically allocating to Treasury bonds and cash. “Like all of the DeltaShares ETFs, this new fund aims to allow investors to participate in rising markets while potentially limiting losses during sustained declining ones,” said Tom Wald, Chief Investment Officer for Transamerica Asset Management.

VanEck Australia partners with FTSE Russell on global property ETF

VanEck FTSE Global Real Estate ETF

VanEck Australia has launched a new ETF – the VanEck Vectors FTSE International Property (Hedged) ETF (REIT AU) – on the Australian Securities Exchange. The fund is linked to an index from FTSE Russell that represents the AUD-hedged performance of real estate investment trusts (REITs) and other property companies listed in developed markets excluding Australia.

Commodities

Gold: How we value the precious metal

Gold: How we value the precious metal

By Nitesh Shah, Director, Research at WisdomTree.

Gold is a unique asset class. Indeed, many investors even question whether it is an asset class. Is it a commodity, or a currency? What’s also interesting about gold is that even though it has been viewed as a form of investment for several millennia, there’s little consensus on how to actually value it.

‘Flight to safety’ leads to massive inflows for Invesco Physical Gold ETC

Chris Mellor, Head of EMEA ETF Equity and Commodity Product Management at Invesco

The Invesco Physical Gold ETC (SGLD LN) has experienced over $500 million in net inflows year-to-date amid increased demand for safe-haven assets driven by political and economic uncertainty. Chris Mellor, Head of EMEA ETF Equity and Commodity Product Management at Invesco, commented, “Gold is often used for portfolio diversification, due to its low correlation with equities, and it can also appeal to investors who want to take a more defensive stance during times of market stress.”

Equities

Factors in focus: Risky start. Quality finish.

Factors in focus: Risky start. Quality finish.

By Hitendra D. Varsani, Executive Director and Factor Strategist, MSCI, and Waman Virgaonkar, Senior Associate, Quantitative Research, MSCI.

In this blog post, we highlight the fast-moving rotation among factors that continued during Q1 2019, and we present our latest indicators for factor performance from our adaptive multi-factor framework.

BlackRock launches MSCI Saudi Arabia ETF in Europe

BlackRock launches MSCI Saudi Arabia ETF in Europe

BlackRock has launched a new ETF – the iShares MSCI Saudi Arabia Capped UCITS ETF (IKSA LN) – in Europe. Listed on London Stock Exchange, the fund provides investors with pure-play access to Saudi Arabia’s equity market ahead of its planned upgrade to emerging market status in May.

KraneShares launches EM ex-China ETF on NYSE

KraneShares launches EM ex-China ETF on NYSE

KraneShares has launched a new ETF – the KraneShares MSCI Emerging Markets ex China Index ETF (KEMX US) – on NYSE Arca, providing exposure to stocks from emerging markets excluding China. The fund complements KraneShares’ China-focused core and thematic funds, enabling investors to build tailored emerging market portfolios without duplicating their country exposure.

ETF and Index News

Global X expands thematic suite with cloud computing ETF

Global X expands thematic suite with cloud computing ETF

Global X has introduced the fourteenth fund in its thematic investing suite with the launch of the Global X Cloud Computing ETF (CLOU US). Listed on Nasdaq Exchange, the fund provides exposure to firms that stand to benefit from the proliferation of cloud technology and services.

ETFs primarily used for buy and hold, finds Vanguard

ETFs primarily used as buy-and-hold vehicles, finds Vanguard

Despite the perception that ETFs are used for short-term trading, the majority of investors primarily use the vehicle as a long-term investment tool, according to a survey commissioned by Vanguard that examined the views of 400 professional ETF buyers across Europe.

DWS: Debunking five ESG investing myths

Eric Dutram, Assistant Vice President, DWS.

By Eric Dutram, Assistant Vice President, DWS

Though environmental, social, and governance (ESG) investing has entered the mainstream, it remains a neglected topic for many. Some still believe that the strategy is a passing trend – the flavor of the month in investing that might feel good, but at the cost of an unbalanced portfolio and possibly even lower returns as well. Fortunately for ESG investors, these are all myths about responsible investing.