The CBOE has announced that it will launch an interest rate-based volatility index, the CBOE Interest Rate Volatility Index (SRVX), on Monday 18 June. The SRVX Index is designed to offer fixed income investors a standardised and transparent measure of interest rate swap volatility. The launch will likely prove to be the precursor to a range of ETFs/ETNs based on interest rate volatility. Perhaps the closest thing to such an ETF currently available is the Xetra-listed DB X-trackers Euro Interest Rates Volatility TR Index ETF (XVOL), which tracks the Euro Interest Rates Volatility TR Index.

The need for action prompted by climate change and the crises surrounding energy supply security will likely trigger changes in virtually every area of the economy. A new study from Allianz Global Investors argues that this could lead to a new phase of growth. The world economy, they say, may be at the beginning of a new long-term cycle of prosperity, or sixth Kondratieff cycle, characterised by a sustainable ‘green’ path of growth. We profile a number of clean energy ETFs that are likely to benefit.

UBS Global Asset Management has listed twelve new ETFs on Deutsche Börse’s Xetra in the past couple of weeks, as the Switzerland-headquartered investment giant builds out its ETF offering. The ETFs were introduced in two batches – 30 May 2012 and 12 June 2012 – and are based on major developed-market equity indices from MSCI, FTSE and S&P.

Research amongst IFAs by Legal & General Investments, shows that seven in ten advisers are concerned about the counterparty risks associated with derivative-based, or so-called synthetic, index funds and ETFs. The research found that, when asked about the counterparty risks associated with the products, two-fifths said they were very concerned with an additional 29% expressing that they were slightly concerned. In addition, six in ten advisers expressed concern over the counterparty risks associated with stock lending programmes.

Neil Gregson, MD at JP Morgan, argues that, while the gold price has been volatile recently, the structural supports for gold remain in place. Gregson points to central bank buying as a critical support for the gold price: “Central banks were net buyers of gold for the first time since 1987 in 2011…IMF data shows that this buying spree continued in the first quarter of 2012.” Gregson, an expert on the natural resources sector, says: “For long-term investors, the depth and diversification of gold demand means the outlook remains favourable.”

Sustainable Wealth Management has launched the Sustainable North American Oil Sands ETF (SNDS). The fund is the first pure-play ETF with exposure to Canada’s massive oil sands reserves. SNDS invests in domestic and international companies that have North American oil sands operations ranging from production to equipment to pipelines and storage. The diversified portfolio of energy companies positions SNDS to potentially capitalise on the continued growth of the world’s largest known oil reserve outside of OPEC.

FTSE, a leading global index provider, and Cürex Group, a developer of intellectual property and technologies that link institutional foreign exchange with global capital markets, have announced the launch of the FTSE Cürex FX Index Series – a new range of independently calculated, 24/5 streaming, executable spot FX benchmark FIX for currency pairs and currency baskets.

Man Group, Europe’s largest hedge fund manager, has announced that the Man GLG Europe Plus Source ETF (MPFE) has reached assets of over $550m, making it one of the world’s largest active-strategy equity ETFs. The success of the fund, which launched in January 2011 with the aim of systematically exploiting brokers’ stock tips, will be seen as an encouraging sign for the commercial viability of enhanced index and actively managed ETFs.

According to data from Credit Suisse, European ETFs recorded inflows of $3,234m in May, though the result was skewed by the German-domiciled iShares DAX ETF (EXSI), which recorded inflows of $4,744m. May was a busy month for European ETF issuers, with 21 new launches. The highlight of the month was perhaps the launch of 5 ETFs by Vanguard – a much anticipated entry into the European market and one that may potentially change the dynamics of the market itself.

Analysis of the European ETF industry reveals that 241 funds may be on a so-called “Death List”, according to Detlef Glow, Lipper’s head of EMEA research. Out of the 1,711 ETFs registered for sale in Europe, 241 funds, approximately 14%, may under review by ETF issuers for reasons to do with profitability and commercial viability.