A look inside the Fed’s $1.307 billion ETF allocation – 7 iShares ETFs account for 48% of the assets

Latest news

A look inside the Fed’s $1.307 billion ETF allocation

By Deborah Fuhr, Managing Partner and Founder of ETFGI.

The Federal Reserve announced on March 23rd that it would purchase corporate bonds for the first time in its 107-year history.  The Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility (SMCCF) would begin purchases of ETFs on May 12th.

[continue reading...]

Fallen Angels: High Yield Through the Credit Cycle
Speaker: Fran Rodilosso, Portfolio Manager and Head of Fixed Income ETF Portfolio Management, VanEck
Date: Thursday 4th June 2020
Time: 2:30pm BST | 3:30pm CEST
Register Now

Latest news

The latest phase of the market rally has been led by cyclical sectors including industrial, energy, financial, and consumer discretionary stocks.

Cyclical ETFs rebound as global economy reopens

ETFs providing exposure to cyclical sectors of the equity market are prospering as lockdown restrictions are eased and economies stir to life. Industrial, financial, energy, and consumer discretionary ETFs have all outperformed the broader market over the past two weeks, while US Global Investors’ airline industry ETF, JETS, has notched up gains in excess of 33%.

HANetf enters Swiss market with five ETF listings

HANetf enters Swiss market with five ETF listings

European white-label ETF platform HANetf has announced its debut in Switzerland with the cross-listing of five ETFs on SIX Swiss Exchange. The ETFs include three disruptive technology ETFs launched in cooperation with GinsGlobal Index Funds; an emerging markets internet and e-commerce ETF with Big Tree Capital; and a medical cannabis ETF in collaboration with Purpose Investments. Hector McNeil, co-Founder and co-CEO at HANetf, commented, “We see megatrend ETFs as being particularly well suited to the Swiss wealth management market as they are typically highly differentiated and target long-term social or technological trends that have seen high growth in recent years.”

Mirae launches South Korean REIT and government bond ETF on KRX

Tiger launches South Korean REIT and government bond ETF on KRX

Tiger ETF, a division of Mirae Asset Global Investments, has launched a new multi-asset ETF on the Korea Exchange. The Tiger KIS Real Estate Infra Bond Total Return ETF (341850 KS) provides exposure to a mix of alternative investments, including real estate and infrastructure assets, and Korean government bonds.

Swedish Krona solactive fixed income

Solactive launches SEK IG credit index family

Solactive has unveiled a new fixed income index family tracking the performance of investment-grade credit issued in Swedish krona.

WisdomTree rolls out GBP share classes for three oil ETCs

WisdomTree introduces GBP share classes for three crude oil ETCs

WisdomTree has introduced sterling-denominated share classes for three crude oil ETCs listed on the London Stock Exchange. Previously only tradable on the LSE in USD, the new GBP trading lines provide sterling-based investors with exposure to futures contracts on Brent and WTI crude oil benchmarks.

Fixed Income

Inflation or stagnation? The long and short in fixed income ETFs

Inflation or stagnation? The long and short in fixed income ETFs

By the ETF Research team at Direxion.

Traders with an interest in bonds and treasury notes can take their cues from prior instances of economic crisis to inform how they may want to position themselves as the economic drama unfolds.

KraneShares launches China government and policy bank bond ETF in Europe

Jonathan Krane, CEO of KraneShares

China-focused ETF issuer KraneShares has launched its first fixed income ETF in Europe: the KraneShares Bloomberg Barclays China Bond Inclusion UCITS ETF (KBND LN). The fund, which has listed on the LSE, provides exposure to renminbi-denominated bonds issued by China’s Ministry of Finance and policy bank bonds traded in the interbank bond market. Jonathan Krane, CEO of KraneShares, commented, “With attractive yields and low correlations relative to other government bond markets, China fixed income presents a compelling opportunity.”

Commodities

Short-term recovery due for platinum and palladium

Aneeka Gupta, Associate Director of Research, WisdomTree.

By Aneeka Gupta, Director of Research, WisdomTree.

The green industrialized precious metals – platinum and palladium –have started 2020 on a weak footing owing to the spread of the COVID–19 pandemic globally. While the weakness on the demand side remains a key focus, we expect attention to increasingly start to shift to the supply side aiding a short-term price recovery.

Amundi lists Europe’s cheapest gold ETC on LSE

Ashley Fagan, Head of ETF, Indexing and Smart Beta Development for UK and Ireland at Amundi

Amundi has cross-listed the Amundi Physical Gold ETC on the London Stock Exchange. With an expense ratio of just 0.15%, the ETC offers the lowest fixed annual fee of any physical gold exchange-traded product available in Europe. Ashley Fagan, Head of ETF, Indexing and Smart Beta Development for UK and Ireland at Amundi, said, “With this listing on the London Stock Exchange, we will provide UK investors with a robust, transparent, and cost-efficient way to gain exposure to gold in a local sterling trading line.”

Alternatives / Multi-Asset

CSOP launches 2x leveraged NASDAQ 100 ETP in Hong Kong

CSOP launches 2x leveraged Nasdaq 100 ETP in Hong Kong

CSOP Asset Management has unveiled a new ETP in Hong Kong providing leveraged exposure to the NASDAQ 100. The CSOP NASDAQ – 100 Index Daily 2x Leveraged Product (7266 HK) has listed on Hong Kong stock exchange and comes with an expense ratio of 1.99%. The ETP uses derivatives to provide twice the daily return of the index.

Bloomberg unveils its first multi-asset indices

Dave Gedeon, Global Head of Equity and Strategy Indices at Bloomberg

Financial data giant Bloomberg has unveiled its first multi-asset indices. The Bloomberg US Multi-Asset Indices are constructed as a composite of one equity index and one fixed income index with a mix of fixed-weight, market-value-weighted and risk-parity-weighted weighting schemes. Dave Gedeon, Global Head of Equity and Strategy Indices at Bloomberg, commented, “We’ve seen the growing appetite for multi-asset offerings in the market and wanted to provide investors with a thoughtful and innovative solution, utilizing Bloomberg’s existing index offerings.”

Equities

JP Morgan debuts active equity ETFs; shutters hedge fund ETFs

Bryon Lake, International Head of ETFs at JP Morgan Asset Management

JP Morgan Asset Management has announced changes to its US ETF product suite including the introduction of its first actively managed equity ETFs and the closure of ETFs providing hedge fund-style returns. Bryon Lake, Head of Americas ETF Distribution at JP Morgan Asset Management, said, “We regularly monitor and evaluate our product line-up as market and economic conditions evolve. This process allows us to optimize and scale our product offerings to better meet client objectives and market demand.”

Five things to know about Chinese and emerging market stocks

Talley Léger, Investment Strategist in the Global Thought Leadership team at Invesco.

By Talley Léger, Investment Strategist in the Global Thought Leadership team at Invesco.

Chinese stocks have outperformed their US counterparts, a trend we expect may continue…

Goldman Sachs debuts core ‘MarketBeta’ ETFs

Goldman Sachs debuts core ETFs under MarketBeta brand

Goldman Sachs Asset Management (GSAM) has become the latest investment giant to roll out its own range of competitively priced core ETFs. Debuting under the newly unveiled ‘MarketBeta’ brand, the three Cboe-listed ETFs track Solactive indices and provide economical access to market-cap-weighted portfolios of US, developed ex-North America, and emerging market stocks. They come with fees ranging from 0.07% to 0.36%.

ETF and Index News

A bit of active and a bit of passive investing makes sense

ETFs continue to attract the money - John Redwood

By Sir John Redwood, Chief Global Strategist, Charles Stanley.

There has been an on-and-off debate about active and passive management for many years. But is there a right answer?

ETF allocations shift as UK government sells negative-interest gilts for first time

UK government sells negative-interest gilts for first time

The UK Debt Management Office, the executive agency responsible for carrying out the UK government’s debt management, has sold gilts with negative yields for the first time in its history. The pricing of the issuance is a manifestation of the disruption Covid-19 has wrought upon the global economy and financial markets with accompanying investment portfolio asset allocation shifts being reflected in ETF markets.

Index rebalancing during high volatility: A balancing act

Index rebalancing during high volatility: A balancing act

By MSCI.

Significant volatility during COVID-19 highlights a need for index reconstitution, but some may worry about trading costs and excess turnover. We investigate the balance between appropriate market representation and avoiding high index turnover.