Greece has avoided the immediate worst-case scenario, but Spain is now the epicentre of the crisis; while at the same time weaker US growth and inflation prints are opening up room for the Fed to consider implementing another round of QE, write Martin Arnold and Nicholas Brooks of ETF Securities. Both of these scenarios are likely to be bullish gold and this has been reflected in rising physical gold ETP purchases.

The majority of financial advisers admit that they have little or no understanding of the structure ETFs, according to Skandia’s latest Adviser Confidence Barometer. Over two thirds of advisers indicated that they have little or no understanding of the structure of synthetic ETFs and over half have little or no understanding of asset based ETFs.

UBS and hedge fund index specialists Hedge Fund Research (HFR) have announced the launch of four hedge fund strategy ETFs. The new ETFs, which are referenced to HFRX strategy indices, offer investors the opportunity to participate in the performance of specific hedge fund strategies within a liquid UCITS-compliant vehicle. The strategies include equity hedge, event driven, relative value arbitrage and macro CTA.

DB X-trackers has launched a range of ETFs designed to provide financially sophisticated investors with exposure to North American high yield and investment grade credit indices. The London-listed ETFs, which are the first of their kind globally, let investors take pure credit risk exposure to the North American corporate credit market. The ETFs track the performance of the Markit CDX North America Investment Grade and Markit CDX North America High Yield credit default swap (CDS) indices.

Fidelity has announced that its FundsNetwork funds platform will be adding an initial range of 50 physically-backed ETFs as of 18 June. The move is reflective of growing interest in ETFs and the upcoming introduction of the Retail Distribution Review (RDR). The initial line-up of 50 ETFs has been selected from the ranges of four leading ETF providers, namely iShares, Credit Suisse, HSBC and ETF Securities, and provides exposure to a broad range of global markets and asset classes.

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.”