Marina Cremonese, Vice President and Senior Analyst at Moody's.

Latest news

ETFs to drive passive’s market share in Europe to 25% by 2025, finds Moody’s

Passive funds will account for around a quarter of the fund industry’s total assets under management in Europe by 2025, driven by strong demand for ETFs from institutional and retail investors. That’s the finding of Moody’s which investigated the potential growth path of the passive funds industry in Europe. Marina Cremonese, Vice President and Senior Analyst at Moody’s, commented, “ETFs will become a core part of institutional investor portfolios in the next five to ten years due to their flexibility, liquidity and competitive cost.

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Latest news

Carolyn Weinberg, iShares Global Head of Product at BlackRock.

BlackRock launches green bond ETF on Nasdaq

BlackRock has expanded its sustainable investment offering with the launch of the iShares Global Green Bond ETF (BGRN US) on Nasdaq Exchange. The fund provides exposure to hundreds of investment grade green bonds – bonds that have been issued to finance projects with a positive environmental impact – from issuers globally. “This fund simplifies access to green bonds, enabling investors to more precisely match their values to their investment portfolios,” said Carolyn Weinberg, iShares Global Head of Product at BlackRock.

Global ETP flows fuelled by Japan equities in October

Global ETP flows fuelled by Japan equities in October

ETPs collected $31.0 billion in net inflows globally during October, bolstered by robust demand for Japan equity ETPs which gathered $12.8bn, according to BlackRock’s latest ETP Landscape report.

Simon Hynes, Head of Retail Distribution, EMEA, at LGIM

Legal & General launches core equity ETFs

Legal & General Investment Management (LGIM) has unveiled a range of core low-cost equity ETFs on the London Stock Exchange. The ETFs include Global, US, Europe, UK, Japan and Asia Pacific exposures and are linked to indices designed to mitigate the risks of crowded indices while also incorporating a responsible investment screen. Simon Hynes, Head of Retail Distribution, EMEA, at LGIM, said: “We believe our core range will be of interest to our clients due to the low cost and additional value they deliver compared to what’s currently available in the market.”

Marlene Hassine Konqui, Head of ETF Research at Lyxor Asset Management

Passive investing: More an opportunity than a threat to active management

The growth of passive investing may actually be a positive for active management and should be viewed more as an opportunity than a threat. That’s the conclusion of the Lyxor Dauphine Research Academy, which investigated the relationship between passive and active management, looking at what role the growing passive space has left for active managers. Marlene Hassine Konqui, Head of ETF Research at Lyxor Asset Management, said: “Both management styles will take a distinct share in the market as they both have a role to play in investors’ portfolio construction”.

Fixed Income

First Trust expands line-up with two short duration municipal bond ETFs

First Trust expands line-up with two short duration municipal bond ETFs

First Trust Advisors has launched two new actively managed ETFs on NYSE Arca, targeting the short-duration end of the yield curve within the municipal bond market. “Even as interest rates have moved higher this year, investor demand for tax-free income from municipal bonds continues to stand out,” said Ryan Issakainen, Senior Vice President, ETF Strategist at First Trust.

Active ETFs: For fixed income investors who don’t want to follow the pack

Jason Xavier, Head of EMEA ETF Capital Markets at Franklin Templeton Investments.

By Jason Xavier, Head of EMEA ETF Capital Markets at Franklin Templeton Investments,

In this connected world of 24-hour news and social media, many factors continue to vie for the market’s attention, keeping volatility at the forefront of many investors’ minds. In this blog post, I explain how volatility can present tactical investment opportunities, but not for those who are stuck following the crowd.

Alternatives / Multi-Asset

BlackRock unveils ‘core’ ESG range with launch of sustainable US Agg ETF

BlackRock launches ESG version of Bloomberg Barclays US aggregate bond ETF

BlackRock has announced the introduction of the ‘iShares Sustainable Core’ range – a suite of sustainability-focused equity and bond ETFs designed to be used as the foundation blocks of investors’ portfolios. The range encompasses six existing products and one newly launched fund.

Vanguard Australia launches global infrastructure ETF

Vanguard Australia launches global infrastructure ETF

Vanguard Australia has launched the Vanguard Global Infrastructure Index ETF (VBLD AU) on Australian Securities Exchange. The ETF provides low-cost access to developed market securities operating across the three ‘core’ infrastructure sectors: transportation, energy and telecommunications.

Commodities

Silver: Time for a rebound?

Silver ETFs WisdomTree

By Nitesh Shah, Director, Commodity Strategist, WisdomTree.

Silver has had a poor run in recent months with its price falling from over $17/oz in mid-June to just over $14/oz in September. The ‘hybrid’ metal has come under pressure for several reasons: its strong correlation with gold (which has also fallen) has dragged it lower, while the sell-off in industrial metals has exacerbated market pessimism towards all metals. So, what does the future hold for silver? Is the silver price likely to fall further in the near term or is it set for a rebound?

Market turbulence leads to strong inflows for gold ETFs in October

Market turbulence leads to strong inflows for gold ETFs in October

Holdings in gold-backed ETFs rose by 16.5 tonnes globally in October, equivalent to approximately $1.0bn in inflows, according to the World Gold Council, as investors sought safe-haven assets amid a spike in equity market volatility.

Equities

BNP Paribas celebrates tenth anniversary of low carbon ETF

BNP Paribas celebrates tenth anniversary of low carbon ETF

BNP Paribas Asset Management has celebrated the tenth anniversary of its low carbon European equity ETF. The BNP Paribas Easy Low Carbon 100 Europe UCITS ETF was the first low carbon ETF, designed to offer investors an effective investment solution to reduce the carbon footprint of their investment portfolio. Isabelle Bourcier, Head of Quantitative and Index-based Management at BNP Paribas Asset Management, commented: “Since its launch in 2008, investment in BNP Paribas Easy Low Carbon 100 Europe UCITS ETF represents a reduction of around 40% in greenhouse gas emissions compared with its selection universe”.

Thematic assets concentrated in handful of ETFs, finds Morningstar

Thematic ETF AUM concentrated in a handful of products, finds Morningstar

The growth of assets under management in thematic ETFs listed in Europe has been driven by a handful of products, according to a report from investment research house Morningstar.

First Trust launches international (ex US) internet ETF

First Trust launches international complement to Dow Jones internet ETF

First Trust has unveiled the First Trust Dow Jones International Internet ETF (FDNI US) on Nasdaq. The fund provides exposure to 40 of the largest and most actively traded internet companies listed outside of the US. It has a significant leaning towards China, with stocks from the country making up over half of the total exposure and contributing the fund’s top five holdings.

ETF and Index News

IIA survey reveals 3.7 million indices globally

Rick Redding, the CEO of IIA

The Index Industry Association has published the results of its second annual global index survey. The results suggest that there are 3.727 million indices globally, an increase of approximately 438,000 indices since the survey was first conducted in June 2017. Fixed income saw the largest growth. Rick Redding, the CEO of IIA, said, “We are seeing a strong investment in research and development by index providers into building out their fixed income capabilities to offer to clients.”

S&P Dow Jones and Axioma to collaborate on factor strategy indices

Sebastian Ceria, CEO of Axioma.

Index provider S&P Dow Jones Indices and market risk and portfolio analytics specialists Axioma have entered into a strategic agreement to collaborate on the development of optimized factor-based strategy indices. Sebastian Ceria, CEO of Axioma, said, “We look forward to collaborating with S&P Dow Jones Indices on this exciting next generation of factor-based strategies.”

ETFs preferred vehicle of choice for factor investors, finds Invesco

Georg Elsaesser, Senior Portfolio Manager, Quantitative Strategies at Invesco

Investors overwhelmingly prefer to implement factor strategies through ETFs, according to the third annual Invesco Global Factor Investing Study. The study – which interviewed more than 300 investors collectively responsible for over $19 trillion in AUM – also found that barriers to factor investing are falling rapidly, and the majority of factor users are reporting a positive experience. “Factor allocations will continue to rise relative to other allocations, consolidating its evolution from a complex and experimental strategy to a third strategic pillar to stand alongside familiar active and passive styles of management,” said Georg Elsaesser, Senior Portfolio Manager, Invesco.