To hedge, or not to hedge, that is the question faced by portfolio managers with global investment mandates. While institutional investors may have the luxury of delegating this question to a dedicated fx overlay manager, for others it has the potential to cause sleepless nights. One thing is for sure, the performance differences between being hedged or unhedged can be stark, as demonstrated by the returns of Euro Stoxx 50 equity ETFs over the past month.

ETFs exposed to energy stocks have outperformed the broader equity ETF universe in April, with several funds notching up returns in excess of 11% for the month. Two ETFs which track the MSCI World Energy Index—the Lyxor MSCI World Energy TR UCITS ETF (NRGW LN) and Xtrackers MSCI World Energy Index UCITS ETF (XDW0 LN)—returned 10.0% and 9.3% respectively.

ETF Securities Australia has reached $1 billion in assets under management, driven, the firm says, by investors seeking easy, transparent and low-cost access to a range of asset classes. Kris Walesby, CEO of ETF Securities Australia, commented, “It is significant that each year Australian investors become more confident and comfortable using ETFs to build their portfolios in a simple and low-cost way.”

Nasdaq has partnered with Yewno, a provider of AI-driven solutions to the financial sector, to launch a new suite of indices targeting firms that are highly exposed to a range of innovative and disruptive technologies. The indices capture 35 technology themes that the partners believe are poised to disrupt the real economy.

State Street Global Advisors has introduced a distributing share class for the SPDR FTSE UK All Share UCITS ETF. The new share class, available on both Deutsche Börse and London Stock Exchange, will suit income-seeking investors looking for comprehensive access to the UK equity market.

By Nicola Mai, portfolio manager, sovereign credit analyst at PIMCO.

Back in 2014, PIMCO developed the concept of The New Neutral as a secular framework for interest rates. After the financial crisis, the global economy entered a new regime in which the equilibrium (i.e., neutral or natural) policy rates needed to ensure trend growth and at-target inflation would be much lower than their historical levels.

By Fran Rodilosso, head of fixed income ETF portfolio management at VanEck.

Our outlook for 2018 is characterised by the continued normalisation of interest rates in both the US and Europe, and the US Federal Reserve has already signalled more aggressive rate hikes to come. We feel that combining emerging markets local currency bonds with floating rate investment grade bonds can allow investors to position their fixed income portfolios for this current environment.

State Street Global Advisors has changed the underlying indices for two of its fixed income ETFs – the SPDR Portfolio Short Term Treasury ETF (SPTS US) and SPDR Bloomberg Barclays Intermediate Term Treasury ETF (ITE US). Noel Archard, global head of product for SPDR ETFs, commented, “With these changes, our suite of Treasury bond SPDR ETFs will offer more precise exposure to various segments of the US Treasury market.”

Aberdeen Standard Investments has acquired the US operations of ETF Securities. The deal sees Aberdeen Standard take charge of a $2.8bn suite of commodity ETPs while also providing the firm with the platform and expertise to launch their own strategies within the ETF wrapper. Chris Demetriou, CEO-Americas at Aberdeen Standard Investments, said, “The expansion of our capabilities into the ETF space shows our commitment to providing the largest range of solutions to our clients in the US.”

Evolve ETFs is preparing to launch the Evolve Innovation Index ETF (EDGE CN) on Toronto Stock Exchange. EDGE invests in companies involved in innovative or disruptive trends across a broad range of industries. Raj Lala, president & CEO of Evolve ETFs, said the fund “combines today’s most transformational themes into a single diversified portfolio of disruptive industries.”