Ossiam launches US Treasury steepener ETF

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Ossiam launches US Treasury steepener ETF

Paris-based ETF issuer Ossiam has launched a new fund in Europe – the Ossiam US Steepener UCITS ETF – which allows investors to profit from a steepening of the US Treasury yield curve. Listed on Xetra, the fund tracks the Solactive US Treasury Yield Curve Steepener 2-5 vs 10-30 Index through synthetic replication. Bruno Poulin, CEO of Ossiam, said, “We have launched the Ossiam US Steepener ETF at a time when the US Treasury yield curve is as flat as it has been since 2007 and many market participants expect a steepening.”

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Latest news

Goldman Sach’s US multifactor ETF attracting sizable inflows

Goldman Sachs US multifactor ETF attracting sizable inflows

The Goldman Sachs ActiveBeta US Large Cap Equity ETF (GSLC US) is proving popular with investors, having gathered over $1.4 billion in net inflows since the start of July. Assets under management in the fund, which targets returns attributable to the value, quality, momentum, and low volatility factors from a universe of stocks comparable to the S&P 500, now stand at more than $6.4bn and are up 75% year to date.

Kiwoom launches mid and small-cap smart beta ETF on KRX

Kiwoom launches mid- and small-cap smart beta ETF on KRX

Seoul-based Kiwoom Asset Management has launched the Kiwoom KOSEF Fn Mid Small Cap ETF (331910 KS) on the Korea Exchange. The fund is linked to the FnGuide-KWAM Smart Mid Small Cap Index, providing equally weighted exposure to a portfolio of quality-screened mid- and small-cap firms listed in South Korea.

Pat Chiefalo, Managing Director, Head of iShares, BlackRock Canada

RBC iShares launches three new asset allocation ETFs in Canada

RBC iShares, the brand name for the joint venture between RBC Global Asset Management and BlackRock Canada, has introduced three new asset allocation ETFs on the Toronto Stock Exchange. Pat Chiefalo, Managing Director, Head of iShares, BlackRock Canada, commented, “Since launching our iShares Core ETF Portfolios, Canadian investors and advisors have shown tremendous enthusiasm for our one-ticket multi-asset ETF solutions…We’re excited to add three ETFs to the suite, to help meet the range of investors’ goals and risk profiles.”

Andrew Walsh, Head of Passive & ETF Specialist Sales for UK & Ireland, UBS Asset Management

UBS’s MSCI World SRI ETF powers through €1bn mark

UBS Asset Management has announced that its UBS ETF (LU) MSCI World Socially Responsible UCITS ETF has surpassed €1 billion in assets under management. The fund, which becomes Europe’s first ESG-focussed ETF to reach the €1bn mark, debuted in 2011 and now stands at a healthy €1.16bn in assets. Andrew Walsh, Head of Passive & ETF Specialist Sales for UK & Ireland, UBS Asset Management, commented, “This milestone represents a further confirmation of our commitment to meet the increasingly sophisticated needs of investors.”

Beyond Investing to launch US vegan climate ETF

Beyond Investing to launch US vegan climate ETF

US investment advisor Beyond Investing has announced the upcoming launch of the US Vegan Climate ETF (VEGN US) – a US large-cap ETF that screens stocks for veganism and environmental criteria. The fund, which will be the first ESG-focused ETF to target the vegan theme, is due to go live on NYSE Arca on 10 September 2019.

Fixed Income

Reconsidering risk and reward: the case for high yield bonds in volatile times

Terry Wood, Head of ETF Portfolio Management, EMEA at BMO Global Asset Management.

By Terry Wood, Head of ETF Portfolio Management, EMEA at BMO Global Asset Management.

As a substitute risk-on asset class, over the longer term, global high yield bonds have provided equity-like returns with lower volatility than equities, especially when currency hedging is considered.

DWS’s Xtrackers EUR Corporate Bond UCITS ETF surpasses €1bn milestone

DWS’s Xtrackers EUR Corporate Bond UCITS ETF hits €1bn milestone

DWS’s Xtrackers EUR Corporate Bond UCITS ETF (XBLC GY) has broken through €1 billion in assets under management. The fund, which provides access to the euro-denominated investment-grade corporate bond market, has reached the milestone through a combination of healthy market performance and strong investor inflows. Simon Klein, Head of Passive Sales, Europe & Asia Pacific at DWS, commented, “The passive index investing and sales teams have worked hard to make this product a success, and the flows it has attracted demonstrate the fund’s high tracking quality and access efficiency within its product segment.”

Alternatives / Multi-Asset

IDX Insights introduces ‘smart beta’ bitcoin index

Bitcoin IDX Insights cryptocurrency index

IDX Insights has launched the IDX Crypto Opportunity Index, a cryptocurrency index that dynamically allocates between bitcoin and fixed income ETFs based on short-term momentum signals. Ben McMillan, Founding Partner and CIO of IDX Insights, said, “Nascent asset classes often provide an opportunity for substantial returns but come with elevated volatility and considerable drawdowns; bitcoin (and other cryptocurrencies) have been no different. We’ve seen increased investor interest in the space but believe that a long-only approach simply doesn’t make sense for most investors.”

IndexIQ: Are small cap REITS undervalued?

Salvatore Bruno, Chief Investment Officer at IndexIQ

Salvatore J. Bruno, Chief Investment Officer at IndexIQ, the issuer behind the $70 million IQ US Real Estate Small Cap ETF (ROOF US) investigates the investment case for small-cap real estate investment trusts (REITs). Based on historic valuations, Bruno finds that small-cap REITs are trading at an unusual discount and are offering substantially higher dividends than their large-cap counterparts.

Commodities

Gold ETF inflows continue in July, reports World Gold Council

Gold ETF inflows continue in July, reports World Gold Council

Global gold-backed ETFs (and ETPs) recorded $2.6 billion net inflows in July, swelling their collective gold holdings by 52 tonnes to 2,600t, a level not seen since March 2013, according to World Gold Council. Last month’s flows continued the positive trend that started in mid-May as investors sought to boost their allocation to gold in order to buffer their portfolios against economic concerns, trade tensions, and geopolitical risks.

BNP Paribas rolls out EUR-hedging on six RICI Enhanced commodity ETCs

BNP Paribas rolls out EUR-hedging on six RICI Enhanced commodity ETCs

French banking and investments giant BNP Paribas has launched euro-hedged share classes for six of its commodity ETCs listed on Xetra. The ETCs use futures contracts to provide exposure to nickel, copper, natural gas, WTI crude oil, Brent crude oil, and a basket of industrial metals. Each is linked to a ‘RICI Enhanced’ index, part of the Rogers International Commodity Index (RICI) stable of indices created by well-known commodities investor Jim Rogers.

Equities

Eliminating that factor home bias

Holly Framsted, Head of US Factor ETFs within BlackRock’s ETF and Index Investment Group.

By Holly Framsted, Head of US Factor ETFs within BlackRock’s ETF and Index Investment Group.

While investors have embraced both U.S. single factors and broad international markets, they have been slower to adopt international single factor ETFs despite international single factors offering the potential for return enhancement or risk reduction. Are investors missing an opportunity to pursue the potential benefits of factors in their international allocations? We would argue yes.

Hong Kong ETFs battered amid ongoing unrest

Hong Kong ETFs battered amid ongoing unrest

ETFs providing exposure to Hong Kong equities have been taking a hammering as civil unrest continues to escalate within the special administrative region. The NYSE Arca-listed iShares MSCI Hong Kong ETF (EWH US), the largest ETF to track the market, has slumped 11.1% in USD terms between 24 July and 12 August 2019 and investors have been exiting in droves, with AUM declining 30% over the period and trading activity hitting a five-year high.

BetaShares launches India quality ETF on ASX

India equities quality betashares

Aussie ETF issuer BetaShares has unveiled its latest fund – the BetaShares India Quality ETF (IIND AU) – on Australian Securities Exchange. The fund, which is linked to the Solactive India Quality Select Index, delivers exposure to a portfolio of 30 Indian equities with high-quality characteristics. It provides Australian investors with an opportunity to diversify their portfolios and a vehicle to tap into India’s robust growth story.

ETF and Index News

Warsaw Stock Exchange launches Poland ESG equity index

Warsaw Stock Exchange launches Poland ESG equity index

The Warsaw Stock Exchange (GPW) has unveiled a new equity index – the WIG-ESG Index – which provides exposure to blue-chip stocks listed in Poland while tilting to those with the strongest environmental, social, and governance (ESG) profiles.

Understanding tracking error

James E. Ross, chairman of the global SPDR business.

By James E. Ross, Chairman of the Global SPDR Business, State Street Global Advisors.

Because ETF investors have become more cost-conscious, a fund’s expense ratio and trading costs are always top of mind. Given the focus on due diligence, tracking error – which in some circumstances may increase costs – is becoming more heavily scrutinized.

BNY Mellon launches ‘round-the-clock’ dealing for Irish UCITS ETFs

Jeff McCarthy, Global Head of ETF services at BNY Mellon

Custodian and fund administrator BNY Mellon has introduced extended dealing hours for Irish UCITS ETFs. Known as ’24×5 ETF Dealing’, the extended hours mean that issuers can now deal Irish UCITS ETFs from Monday morning in Singapore through to Friday afternoon in New York. “We are excited to extend our ETF dealing hours for Irish UCITS products,” said Jeff McCarthy, Global Head of ETF services at BNY Mellon. “It allows ETF issuers to leverage our local support in Asia Pacific and the US, thus providing them with greater distribution and growth potential for their ETFs.”