American Century Investments ETFs

Latest news

New breed of active ETF hits the market

After much anticipation and a few false starts, a new kind of semi-transparent actively managed ETF is now available to investors. Kansas City-based American Century Investments has launched two new ETFs on Cboe BZX, becoming the first asset manager to harness an innovative new active ETF product structure called ActiveShares. Created by financial product developers Precidian Investments, ActiveShares ETFs are able to avoid disclosing daily portfolio holdings while maintaining the tax efficiency, liquidity, and lower costs typically associated with ETFs.

[continue reading...]

Latest news

Esoterica debuts with active 5G ETF

Esoterica debuts with active 5G ETF

New York-headquartered Esoterica Capital, a newly formed asset manager specializing in thematic investments, has introduced its first ETF. The Esoterica NextG Economy ETF (WUGI US) has listed on Cboe BZX Exchange and provides actively managed exposure to a global equity portfolio of companies directly linked to the theme of 5G technology. The fund comes with an expense ratio of 0.75%.

Global markets take a beating in Q1

ETFs suffer as global markets take a beating in Q1

Financial markets have ended the first quarter of 2020 severely bruised and still reeling from a widespread sell-off driven by the economic shock of the coronavirus pandemic. The fire sale was most pronounced in risky assets such as equities and corporate bonds with some markets posting their worst quarterly performance in decades.

Iron Ore Commodity ETFs mining

Hong Kong welcomes first iron ore ETF

The Stock Exchange Hong Kong has welcomed its first ETF, listed by local broker Shanxi Securities, to provide exposure to changes in iron ore prices. The SSIF DCE Iron Ore Futures Index ETF tracks the DCE Iron Ore Futures Price Index, investing directly in renminbi-denominated, front-month iron ore futures contracts traded on China’s Dalian Commodity Exchange. The ETF provides investors with the potential for portfolio diversification as well as an alternate play on economic activity in China.

Lyxor unveils climate change ETF suite

Lyxor unveils climate change ETF suite

Lyxor has announced the launch of a new suite of equity ETFs in Europe aimed at investors who seek to integrate low carbon and climate change considerations into their portfolios. The funds are linked to MSCI Climate Change indices that are aligned with the carbon reduction goals of both the Paris Agreement and the EU’s Technical Expert Group on Sustainable Finance.

Fixed Income

Insight on the Federal Reserve purchasing of ETFs

Matthew J Bartolini, Head of SPDR Americas Research

By Matthew J. Bartolini, Head of SPDR Americas Research, State Street Global Advisors.

ETFs support the Federal Reserve’s goal by providing broad market access to a diverse set of firms through a single investment, trading flexibility and transparency. Details on the size and scope of the program have not been finalized, but we can glean some insights about what may be in focus.

The road to premiums is paved with good intentions

David Mann, Head of Capital Markets, Global Exchange-Trade Funds, at Franklin Templeton Investments

The US Federal Reserve recently announced a number of measures to support the economy and markets amid the coronavirus crisis. One involves the purchase of fixed income ETFs. David Mann, Head of Capital Markets, Global ETFs, at Franklin Templeton, shares his thoughts on the subject, and what he thinks is the best way to support the corporate bond market through these purchases.

Alternatives / Multi-Asset

Direxion tempers inverse & leveraged ETF line-up amid coronavirus volatility

Direxion revises inverse & leveraged ETFs amid COVID-19 volatility

Inverse and leveraged ETF specialist Direxion has made several adjustments to its product line-up in response to the unprecedented market volatility arising from the Covid-19 pandemic and oil price war. The changes include scaling down the magnitude of exposure offered by ten of its most highly leveraged ETFs, as well as permanently shuttering eight ETFs no longer considered to be economically viable.

BlackRock launches trio of ESG ETFs

Stephen Cohen, head of iShares EMEA at BlackRock.

BlackRock has unveiled three new ETFs in Europe as part of the issuer’s growing suite of environmental, social, and governance products. Two of the ETFs are ESG equivalents of existing iShares ETFs that provide broad exposure to eurozone equities and investment-grade USD corporate bonds, while the third ETF targets companies that are aligned with the theme of ‘smart cities’. Stephen Cohen, Head of iShares EMEA at BlackRock, commented, “Providing ESG equivalents to our flagship products while providing innovative thematic products will further steepen the ETF adoption curve.”

Commodities

Gold and precious metals ETFs shine through

Gold and precious metals ETFs begin to shine

ETFs providing exposure to gold and other precious metals are staging a rally as the coronavirus pandemic boosts demand for safe-haven assets and threatens commodity supply shortages. Gold ETCs such as the SPDR Gold Shares (GLD US) and iShares Physical Gold ETC (IGLN LN) have gained 9% in the past four days. Precious metals ETFs have performed even better with the Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR US) and WisdomTree Physical Precious Metals ETC (PHPP LN) adding around 18% over the same period.

WisdomTree: The thematic case for nickel

The thematic case for nickel

By Mobeen Tahir, Associate Director, Research, WisdomTree. Nickel has exciting long-term prospects as its use in electric vehicle batteries is expected to drive its demand growth in the future. This structural trend has, however, not immunised it against the recent headwinds facing industrial metals.

Equities

Chinese equities appear safest amidst the COVID storm

Aneeka Gupta, Associate Director of Research, WisdomTree.

By Aneeka Gupta, Associate Director of Research, WisdomTree.

Chinese equities have emerged as a safe harbour, posting a smaller loss of -10% in comparison to the US at -20% and Europe at –23% respectively in the first quarter of 2020. Investors are starting to pay closer attention to Chinese equities as their valuations are attractive in comparison to the rest of the developed world on a Price to Earnings (P/E) basis.

Nikko launches yen-hedged Dow Jones ETF in Japan

Nikko launches yen-hedged DJIA ETF in Japan

Tokyo-headquartered Nikko Asset Management has launched a new ETF in Japan providing currency-hedged exposure to the Dow Jones Industrial Average. The Nikko Listed Index Fund US Equity Dow Average Currency Hedge (2562 JP) has listed on Tokyo Stock Exchange and comes with an expense ratio of 0.33%.

CSOP launches CSI 500 China A-shares ETF in Hong Kong

CSOP launches CSI 500 China A-shares ETF in Hong Kong

CSOP Asset Management has launched a new China A-shares ETF on the Hong Kong stock exchange. The CSOP CSI 500 ETF is linked to the CSI 500 Index, providing exposure to the mid- and small-cap segments of the Chinese onshore equity market. Melody He, Head of Business Development at CSOP Asset Management, commented, “With global investors’ knowledge on China going deep, we think it is good timing to introduce the CSOP CSI 500 ETF to global investors, especially when CSI 500’s valuation has already returned to historical lows.”

ETF and Index News

Active vs. passive management: Two tools for two different jobs

Mike Loukas, CEO of TrueMark Investments

By Michael Loukas, Principal and CEO of TrueMark Investments.

One of the most common questions asset managers get is where they fall in the “active vs. passive” debate. It is a little bit of an oversimplification to frame the debate as a binary question when the reality is more nuanced. Both passive and active management are tools investors can use. Sometimes passive makes more sense and sometimes active is preferred.

S&P DJI introduces green real estate indices

S&P DJI introduces green real estate indices

S&P Dow Jones Indices (S&P DJI) has launched a series of new real estate index that favour real estate companies with strong track records in sustainability. The indices are an extension of the Dow Jones Select Real Estate Securities Indices (RESI) and consists of four indices covering the US, global, global ex-US, and Japanese property markets.

S&P DJI delays quarterly index rebalance amid market chaos

S&P DJI delays quarterly index rebalance amid market chaos

S&P Dow Jones Indices has announced that the quarterly rebalance of its S&P and Dow Jones equity indices has been postponed due to the severe market disruption caused by the coronavirus.