By David Stevenson – I’ve always had a love-hate relationship with the world of foreign exchange (FX) investing. On paper the global FX markets are hugely attractive to investors, largely because they are so open, so liquid and so broad. That doesn’t mean that making money from them using currency trading, for instance, is even remotely easy. In fact, I take the diametrically opposite view.
Emerging Global Advisors, the asset manager to the EGShares suite of emerging markets-focused exchange-traded funds (ETFs), has revealed that it will close 12 NYSE Arca-listed funds. The funds to close are based on Dow Jones Emerging Markets Sector Titans Indices and represent approximately 4% of the firm’s assets under management.
ETF Securities has launched a service enabling third-party asset managers to launch white-label ETFs in Europe. Known as Canvas, the service provides a range of ETF-based solutions, including the ability to build ETFs using ETF Securities’ full infrastructure, set up a bespoke ETF platform, convert existing UCITS funds into ETFs or add an ETF share class. Matt Johnson, Head of Distribution EMEA, ETF Securities, said: “Canvas provides an easy and efficient way for them [third-party asset managers] to launch ETFs, relying on ETF Securities’ years of proven expertise and infrastructure.”
Deutsche Asset & Wealth Management (DeAWM), the investment management division of Deutsche Bank, has introduced a euro-hedged share class for its db X-trackers MSCI World Index UCITS ETF. The new EUR-hedged share class, which has been listed on the Deutsche Börse, follows the launch earlier this month on the London Stock Exchange of a USD-hedged share class for the db X-trackers MSCI Japan Index UCITS ETF.
With uncertainty about economic growth and Federal Reserve policy, the global exchange-traded product (ETP) industry experienced outflows of $15.0 billion in August, according to the latest ETP Landscape report from BlackRock. This was the largest monthly outflow on record and the second month of redemptions this year following very strong asset gathering in July. Similar to June, outflows were driven by fixed income with $5.3 billion, including $8.1 billion from funds with longer/broader maturity profiles versus inflows for short maturity funds.
Deutsche Asset & Wealth Management (DeAWM), the investment management division of Deutsche Bank, has listed a US dollar-hedged share class for the db X-trackers MSCI Japan Index UCITS ETF (XMUJ) on the London Stock Exchange. The launch complements sterling and euro-hedged MSCI Japan exposures already available, which have been popular investments this year on the back of a rising Japanese stock market and weakening yen.
New research from SPDR ETFs, the exchange-traded funds (ETF) platform of SSgA, reveals over two thirds (69.7%) of IFAs have a positive outlook on the UK economy, with 40% planning to increase their clients’ exposure to UK securities over the next six months. SPDR’s research reveals nearly one in three IFAs (29%) who definitely plan to increase their clients’ exposure to the UK will use ETFs for this. The research also shows that 27% of IFAs expect to recommend ETFs more to their clients in the future, and 30% are undecided about this.