By John Vail, chief global strategist, Nikko Asset Management.
We believe that the G-3 and Chinese economies will perform strongly, in line with consensus expectations, while we expect central banks to reduce their accommodation similarly to consensus expectations. With such as the backdrop, we expect bond yields to rise mildly, the USD to be relatively flat and equity markets to rise quite a bit further.
BlackRock has rolled out a new target-maturity fixed-income ETF in the US – the iShares iBonds Dec 2024 Term Muni Bond ETF (IBMM US) – holding investment-grade US municipal bonds maturing between 1 January 2024 and 2 December 2024.
VanEck has launched a pair of high-yield corporate bond ETFs on the London Stock Exchange. The funds provide exposure to global ‘fallen angels’ and emerging market debt, and become the issuer’s seventh and eighth ETFs to be listed on the exchange. They are linked to indices provided by ICE Data Indices, the indexing division of exchange operator Intercontinental Exchange.
By James E. Ross, chairman of the global SPDR business.
We recently marked the twenty-fifth anniversary of the first US-listed ETF: the SPDR S&P 500 ETF (SPY US). Let’s look ahead to what we think the next 25 years will bring for the ETF industry.
Breakwave Advisors, a US-based commodity trading advisor, has partnered with ETF Managers Group to launch the Breakwave Dry Bulk Shipping ETF (BDRY US). The NYSE Arca-listed ETF provides investors with exposure to a niche component of the commodities industry: dry bulk shipping space.
Loncar Investments has launched the Loncar China BioPharma Index, the world’s first global index to track the performance of companies leading China’s biotech revolution. The index is suitable as the underlying reference for investment products such as ETFs.
UBS Asset Management has introduced a new Japanese yen-hedged share class for the UBS MSCI ACWI ESG Universal UCITS ETF on SIX Swiss Exchange, providing JPY-referenced investors currency-hedged exposure to global stocks with high environmental, social, and governance (ESG) standards.
Lyxor has launched a new range of ‘Core’ ETFs with total expense ratios starting from just 4 basis points. The range is composed of 16 ETFs covering the major equity markets as well as gilts and TIPS on the fixed income side. Four new ETFs have been launched to complement 12 existing, re-badged ETFs whose fees have been cut. Arnaud Llinas, head of ETFs and indexing at Lyxor, said, “Investors tell us they want simple, high quality ETFs at low costs. We’ve launched our Core range to achieve precisely that.”
Active equity managers in Europe have taken a beating in the past decade, overwhelmingly failing to outperform their benchmark indices over the last ten years, according to the latest S&P Indices Versus Active (SPIVA) Scorecard. The results support the ongoing argument that passive funds, such as index-tracking ETFs, pack a better punch than their actively managed counterparts.
Inflation in the UK fell more than expected during February, according to latest figures from the Office for National Statistics (ONS), providing some relief for hard-pressed consumers. Representatives from ETF issuers offered their take on what the results mean for UK monetary policy.