S&P Indices has announced the launch of the S&P Enhanced Yield North American Preferred Index. The index, which tracks 50 of the highest yielding preferred stocks listed on North American exchanges, has been licensed to Global X Funds to serve as the basis for a planned ETF. Preferred stocks combine the characteristics of debt and common stocks, with low correlations to both. While their expected volatility and returns fall between those of common stocks and bonds, their yields are typically higher.

Worries about the eurozone continue to accelerate, driven by uncertainty surrounding the financial health of Greece, Portugal, Italy, and now Spain. As volatility seems set to return to mid-crisis levels, Fran Rodilosso, international high-yield corporate bond portfolio manager at Market Vectors ETFs, sees key differences between what is taking place today and what the markets saw in 2008.

Direxion, a US-based provider of alternative ETFs, has announced changes to the benchmark indices of eight leveraged and inverse ETFs. The eight ETFs, which are currently benchmarked against Russell indices, will switch to indices managed by S&P. The switch marks an impressive win for S&P Indices, who are already enjoying a sharp rise in licensing activity thanks to the boom in ETFs.

Global X Funds, a New York-based ETF provider, has launched the Global X Top Guru Holdings Index ETF (GURU), a fund which provides investors with exposure to some of the stocks most commonly held by major hedge funds. The NYSE-listed fund allows ordinary investors to tap into the combined expertise of some of the largest hedge fund managers, without the customary detractions of hedge fund investing – namely high expenses, liquidity restrictions and minimum investments.

In response to growing demand from IFAs for access to ETFs and in light of regulatory changes, Barclays Stockbrokers has announced that it is re-launching its service for the intermediary market. Feedback from IFAs and the increased use of ETFs across platforms supports the view that demand for ETFs is set to continue to grow in the lead up to the implementation of RDR and beyond.

Canada-based Horizons ETFs and its affiliate AlphaPro Management have announced the launch of two innovative ETFs which seek to provide exposure to North American stock market indices, while providing protection from so-called “Black Swan” events. The Horizons Universa Canadian Black Swan ETF (HUT) and the Horizons Universa US Black Swan ETF (HUS.U) are the first ETFs to be launched that pair a tail-risk hedge with an equity index investment.

Credit Suisse has found itself on the end of a class action lawsuit following the dramatic collapse in the price of VelocityShares Daily 2x VIX Short Term ETNs (TVIX) earlier this year. Wolf Haldenstein Adler Freeman & Herz, a New York-based law firm, has filed a class action lawsuit against the investment bank on behalf of investors who lost money when the ETNs fell approximately 60% in just two days.

Volatility related to political and economic uncertainty in Europe may create buying opportunities in US corporate credit and emerging markets debt, according to a report issued by Standish Mellon Asset Management, part of BNY Mellon. “During periods of high uncertainty that could arise because of eurozone issues, we believe there could be buying opportunities for US corporate credit and emerging market sovereign bonds, which appear to have attractive fundamentals,” said Thomas D. Higgins, global macro strategist.

Data released by the IMF last week shows that the official sector has continued to buy gold in large quantities this year. In particular, emerging market central banks have been major acquirers as they look to diversify their reserves away from traditional reserve currencies. For investors wanting to follow the lead of emerging market central banks or indeed capitalise on their continued gold buying, physically-backed gold ETCs are, aside from buying bullion itself, the most direct route into the metal.

BlackRock and Bloomberg have announced the industry’s first consolidated view for European iShares ETFs, designed to reduce market fragmentation and improve liquidity and transparency. A consolidated view lets investors see the most competitive bid/offer prices and the locations of best liquidity. The comprehensive picture is created by Bloomberg, using its European Composite tickers, which aggregate volume and trading data for reported over-the-counter and exchange traded transactions.