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Global X unveils two thematic equity ETFs

May 16th, 2016 | By
Jay Jacobs, Head of Research and Strategy at Global X.

New York-based exchange-traded funds provider Global X Funds has launched two new thematic ETFs that aim to take advantage of evolving global demographics. The Global X Longevity Thematic ETF (LNGR) invests in companies that are well positioned to serve the world’s growing senior citizen population, and the Global X Health & Wellness Thematic ETF (BFIT) seeks to harness the effects of changing consumer lifestyles by investing in companies geared toward promoting physical activity and well-being. Jay Jacobs, Director of Research at Global X, commented: “Thematic investing is a growth-oriented investment strategy that has long been available to institutional investors. We’re excited to continue expanding our suite of thematic ETFs designed to benefit from some of the major changes impacting the global economy.”


First annual rolling crude oil futures ETF lists in Hong Kong

May 16th, 2016 | By
Phillip Capital launches Hong Kong ‘newly listed equities’ ETF

Hong Kong-based CSOP Asset Management has listed the city’s first ETF to offer exposure to crude oil futures while rolling contracts only once a year. The CSOP WTI Oil Annual Roll December Futures ER ETF (stock code: 3135) listed on the Hong Kong Stock Exchange on 13 May 2016. The fund’s underlying index, the BofA Merrill Lynch Commodity index eXtra CLA Index, tracks the performance of December month WTI Futures Contracts. The ETF rolls over its contracts on an annual basis. By utilising futures to obtain exposure to crude oil, investors are able to avoid the storage and transportation costs associated with direct physical investment in the commodity.


iShares lists nine smart beta ETFs on Bats

May 13th, 2016 | By
Laura Morrison, senior vice president, global head of ETPs at Bats

Leading electronic stock exchange group Bats Global Markets (Bats) has welcomed nine new exchange-traded funds from provider iShares to its US market. The products form part of the new iShares Edge ETFs launched by BlackRock, which are a clearly defined suite of factor ETFs, covering minimum volatility, single and multifactor funds. The move marks the largest number of listings in one day for the Bats ETF Marketplace and brings the total number of iShares ETFs listed on the exchange to 40. “We are excited to help iShares launch these ETFs as part of their new Edge suite, which is designed to capture the power of factors to help reduce risk or enhance returns,” said Laura Morrison, Senior Vice President and Global Head of Exchange-Traded Products at Bats.


MCB, ZyFin launch Indian sovereign bond ETF aimed at international investors

May 6th, 2016 | By
BlackRock launches Indian government bond ETF in Europe

MCB Capital Markets and Zyfin have together launched an exchange-traded fund giving international investors access to the Indian sovereign bond market for the first time. The MCB India Sovereign Bond ETF is domiciled in Mauritius and will be listed on the Stock Exchange of Mauritius in June. The ETF will replicate the ZyFin India Sovereign Bond Liquid Index, which tracks the performance of the most liquid, fixed rate, Indian Rupee-denominated bond issued by the government of India, with a typical maturity between 8 and 13 years.


Wide Moat ETF outperforms S&P 500 by 10% YTD

May 6th, 2016 | By
VanEck Vectors Morningstar Wide Moat ETF enjoys strong start to 2016

The VanEck Vectors Morningstar Wide Moat ETF (MOAT), has outperformed the S&P 500 Index by more than 10% year-to-date (30 April 2016), based on net asset value returns. “While the short-term performance of MOAT is strong, just as notable is the long-term track record of its underlying wide moat index strategy,” said Brandon Rakszawski, ETF Product Manager at VanEck. “MOAT’s underlying index has, in fact, outperformed the S&P 500 Index by more than 400 basis points on an annualized basis from the launch of MOAT’s index on 14 February 2007 through 30 April 2016.


SSGA rolls out 10 World Sector ETFs in London

May 5th, 2016 | By
SSGA rolls out 10 SPDR MSCI World Sector ETFs on Euronext London

State Street Global Advisors (SSGA), has launched 10 new exchange-traded funds on Euronext’s newly established London platform. It brings the total ETF count on the new exchange to 12 following its launch earlier this week [3rd May]. The 10 MSCI World Sector SPDR ETFs, that are also cross-listed on the London Stock Exchange, will track indices provided by MSCI offering exposure to globally-listed companies operating within chosen sectors. Sector ETFs provide a means for investors to adjust their exposures simply and cost-efficiently in response to changes in the economic cycle. Alexis Marinof, Head of SPDR ETFs for EMEA said: “Investors would do well to consider a sector rotation strategy. It can add an important layer of diversification and control to multi-asset portfolios.”


Brexit is worst scenario for European markets, says WisdomTree Europe

May 5th, 2016 | By
WisdomTree: Why you can't afford to miss European small caps

In WisdomTree Europe’s final statement in its series on the implications of Britain’s In-Out EU referendum, the exchange-traded funds provider argues that a vote to leave the Union would be the worst possible scenario for Europe’s financial markets. The firm notes that Britain’s exit from the EU may cause socio-economic instability within the UK (especially by renewing calls for Scottish independence) as well as heighten current instability between members of the single currency. In the face of such uncertainty, WisdomTree suggests allocating to safe haven assets such as gold or German Bunds.


EM equity ETFs at value discount to bonds, finds WisdomTree Europe

May 5th, 2016 | By
Viktor Nossek , director of research at WisdomTree in Europe.

Dividend-paying emerging market stocks may present a value opportunity for investors especially when compared to liquid emerging market bonds, according to research from exchange-traded fund provider WisdomTree Europe. Viktor Nossek, Director of Research at WisdomTree Europe finds that the fundamentals behind emerging market equities appear to be improving, while revisions to expected US interest rate policies have been supportive of emerging market currencies. The combination of stabilising commodity prices, revivals in energy and mining stocks, signs of tapering in China’s economic slowdown, and evidence of corporate balance sheet restructuring has also served to boost sentiment behind local equities.


Toronto Stock Exchange reaches milestone of 400 listed ETFs

May 5th, 2016 | By
Toronto Stock Exchange reach milestone of 400 listed ETFs

Toronto Stock Exchange has surpassed a significant milestone this week with more than 400 exchange traded funds now listed on its platform. The number of ETFs listed on the exchange has more than doubled since 2011, bringing the total market capitalization to approximately $106 billion as of 30 April 2016. To celebrate the achievement, ETF industry participants joined Shaun McIver, Chief Client Officer, Equity Capital Markets, TMX Group to open trading on 4 May 2016.


First Asset launches smart beta ETF on Canadian equities

May 4th, 2016 | By
WisdomTree launches Canada aggregate bond ETF

Canadian exchange-traded fund provider First Asset Investment Management has launched the First Asset MSCI Canada Quality Index Class ETF (FQC) on the Toronto Stock Exchange. The ETF tracks the MSCI Canada Quality Index which references 25 Canadian companies, including large and mid-cap stocks with sustainable competitive advantages, durable business models, consistently improving earnings and healthy balance sheets. The index identifies stocks with high quality scores based on three fundamental variables: high return on equity, stable year-over-year earnings growth and low financial leverage. Constituents are weighted according to their relative quality scores and their market capitalizations.