Van Eck has announced the launch of the Market Vectors Emerging Markets High Yield Bond ETF (HYEM), an ETF that focuses solely on the dollar-denominated non-sovereign segment of the emerging market high-yield bond market. The fund aims to track the performance of the BofA Merrill Lynch High Yield US Emerging Markets Liquid Corporate Plus Index (EMHY), which is comprised of dollar-denominated bonds issued by non-sovereign emerging market issuers that are rated below investment grade.

According to data from Morningstar, ETF asset flows took a breather in April, adding just $2.4 billion in new assets. Notably, all the net new flows went to taxable- and municipal-bond offerings. These two asset classes collected $5.1 billion while US and international equity ETFs shed $2.8 billion. Investment-grade and high-yield offerings took centre stage. Vanguard collected $4.4 billion in April, four times more than the next closest provider. The company’s ETF offerings last experienced a monthly outflow in February 2003.

Source, a UK-based provider of exchange-traded products (ETPs), has announced the launch of the Source Brent Crude Enhanced T-ETC (BOIL). The Treasury-secured ETC offers optimised exposure to Brent crude oil via the S&P GSCI Brent Crude Enhanced Total Return Index. Brent crude is increasingly recognised as a distinct and important oil benchmark, and has recently consistently traded at a premium to WTI. The ETC adheres to a series of dynamic rolling rules which help mitigate the potential effects of contango (negative roll yield).

Arrow Investment Advisors has announced the launch of its debut ArrowShares ETF, the Arrow Dow Jones Global Yield ETF (GYLD). The ETF is the first fund to track the Dow Jones Global Composite Yield Index, a newly launched benchmark that provides diversified exposure to traditional and alternative sources of income across multiple asset classes. The benchmark has delivered a competitive yield of approximately 7% to 9% over the past year.

The election over the weekend of socialist Francois Hollande in France and the rejection of mainstream parties in Greece threaten to push the eurozone back into crisis. Markets in Greece have already reacted violently to their country’s election results, with stocks down over 7%. Meanwhile the reaction to the French presidential election has, so far, been more benign. However, with Hollande promising to renegotiate Europe’s Fiscal Pact, market volatility looks set to rise. With instability once again back on the radar, investors will likely seek the relative safety offered by gold ETCs.

Barclays and MSCI have announced plans to create a family of co-branded Environmental, Social & Governance (ESG) fixed income indices. The indices will be aimed at investors with ESG commitments, such as UN PRI (United Nations Principles for Responsible Investing) signatories, who have exposure to fixed income investments that require a benchmark which integrates ESG factors. It is anticipated that the indices will also eventually be used as underlying benchmarks for ETFs.

Three new ETFs have been issued by DB X-trackers, a subsidiary of Deutsche Bank, on Xetra. The db x-trackers II Eurozone Sovereigns Double Long Daily ETF and db x-trackers II Eurozone Sovereigns Double Short Daily ETF enable investors to participate with a leverage factor of two in the positive or inverse performance of government bonds issued by eurozone countries, while the db x-trackers II iBoxx € Germany 7-10 TRI ETF provides exposure to government bonds issued by Germany within the 7-10 years maturity bucket.

Horizons ETFs last week launched Canada’s first hedge fund ETF, the Horizons Morningstar Hedge Fund Index ETF (HHF). The ETF enables investors to get hedge fund-type exposure via a cost-efficient, liquid index strategy listed on the Toronto Stock Exchange. The fund seeks to replicate the performance of the Morningstar Broad Hedge Fund Index, a broad-based hedge fund index developed by Morningstar, which contains more than 500 constituent hedge funds.

The Dow Jones-UBS Commodity Index – which can be accessed via the ETFS All Commodities DJ-UBSCI ETC (AIGC) – was down 0.43% for the month of April as expectations for consumer consumption in some products fell. The worst performing non-leveraged commodity ETCs were those tracking sugar and lean hogs, with underlying indices for these commodities ending the month down 11.95% and 4.95% respectively. The strongest performing ETCs were those tracking soybean and lead, which rallied 7.09% and 5.63%, respectively.

Morningstar, a provider of fund data and research, has released the results of its fourth online survey of UK investors into the appetite, understanding and use of ETFs. The results suggest that investors, particularly private investors, have a strong and continuing preference for physically-backed ETFs. Another key finding – that nearly every investor cites cost as being either “very important” or “important” – suggests that recent moves by ETF providers to compete on fees will prove a successful strategy in the race to accumulate assets.