All entries by this author

WisdomTree celebrates ten years since launch of first US ETFs

Jul 1st, 2016 | By
WisdomTree cross-lists global ex-Mexico ETF on Bolsa Mexicana de Valores

Global ETF provider WisdomTree is celebrating ten years since the launch of its first US-based ETFs. The funds, launched on the NYSE, comprised a suite of 20 fundamentally-weighted smart beta equity ETFs tracking in-house indices which use a rules-based process to provide broad market representation and minimise turnover. WisdomTree CEO and President Jonathan Steinberg, said: “Ten years ago, WisdomTree believed ETFs represented the future of asset management because of their investor-friendly characteristics; we introduced an important evolution in index construction through fundamental weighting and a novel business model of self-indexing which allowed WisdomTree to become one of the world’s leading ETF sponsors.”

iShares launches Euro STOXX 50 and DAX ETFs on HKEx

Jul 1st, 2016 | By
Matteo Andreetto, Head of SPDR ETF Business, EMEA

Global index provider STOXX has licensed its Euro STOXX 50 and DAX indices to global ETF provider iShares to serve as the underlying for two new ETFs listed on the Hong Kong Stock Exchange (HKEx) earlier this week. The iShares DAX Index ETF and iShares EURO STOXX 50 Index ETF are physically replicated ETFs. Matteo Andreetto, Chief Executive Officer at STOXX, said: “The Euro STOXX 50 and DAX indices provide market participants globally with access to the performance of the key eurozone and German blue-chip companies, respectively, among them well known brands such as Bayer, BMW, Volkswagen or ING.”

Surprise Brexit vote impacts equity and currency ETFs

Jun 28th, 2016 | By
Traders voice concerns over growth of passive investing

The result of Thursday’s vote to leave the European Union caught traders off-guard, resulting in a massive sell-off of assets on Friday 24 June 2016. As it became clear that Britain would be leaving the economic bloc it has been part of since 1975, exchange-traded funds tracking major UK, US and European indices suffered significant falls in value, while currency exchange-traded products were also hit. ETFs such as the iShares Core FTSE 100 UCITS ETF (LSE: ISF) and the Vanguard FTSE 100 UCITS ETF (LSE: VUKE) dropped 6.4% as the UK market opened on Friday.

PowerShares cross-lists smart beta EM ETF in Germany

Jun 27th, 2016 | By
Bryon Lake, Global Head of ETF Solutions, JP Morgan Asset Management.

ETF provider InvescoPowerShares has cross-listed its PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF (EMHD) to Xetra and Börse Frankfurt. First listed on the London Stock Exchange in May this year, the smart beta ETF tracks stocks from emerging markets with high dividend yields and low price volatility. It trades in US dollars and tracks the performance of the FTSE Emerging High Dividend Low Volatility Net Total Return Index. Bryon Lake, Head of Invesco PowerShares – EMEA, said: “By combining the high dividend and low volatility screens, we are seeking to present the best of both factors for emerging markets equity exposure.”

Afkar Capital launches UAE’s first UCITS ETF

Jun 27th, 2016 | By
Dubai Financial Market unveils regional ETF trading platform

Abu Dhabi-based asset manager Afkar Capital has launched the first UCITS-compliant exchange-traded fund to list in the Middle East. The Afkar S&P UAE UCITS ETF (UAETF) will list on local stock exchange Dubai Financial Market on Wednesday. The fund tracks the S&P UAE BMI Liquid 20/35 Capped Index, a reference for the largest stocks by market capitalization in the UAE. His Excellency Essa Kazim, Chairman of Dubai Financial Market, said in a statement: “Dubai Financial Market is delighted to welcome this significant step from Afkar Capital, in line with our strategy to provide investors with innovative and diversified investment products.

Mackenzie Investments launches smart beta equity ETFs

Jun 24th, 2016 | By
WisdomTree launches Canada aggregate bond ETF

Canada-based Mackenzie Financial Corporation (Mackenzie Investments) has launched two smart beta equity exchange-traded funds on the Toronto Stock Exchange offering exposure to US and Canadian equities. Launched in partnership with Paris-based asset management firm TOBAM, the ETFs are designed to act as core portfolio holdings. The funds track the performance of rules-based indices from TOBAM’s Maximum Diversification Index Series. Each index aims to create a more diversified portfolio relative to a market capitalization weighted benchmark. The ETFs have a TER of 0.60%.

Strategy Shares debuts two actively managed ETFs on NYSE

Jun 23rd, 2016 | By
Goldman Sachs launches active US small-cap ETF

Newly formed exchange-traded fund issuer Strategy Shares, previously branded Huntington Strategy Shares (of US-based Huntington Bank), has launched its first two ETFs on the NYSE. The actively managed funds offer exposure to global environmentally-focused firms, and US-listed firms with a segment rotation overlay. Jerry Szilagyi, CEO of Strategy Shares, commented in a statement: “As we expand our portfolio of fund offerings, our focus will remain rooted in the brand’s core mission: to offer investors unique, alternative strategies that rely on the expertise of top-performing investment teams.”

Fullgoal becomes first Chinese issuer to list ETF in Europe

Jun 22nd, 2016 | By
Fullgoal becomes first independent Chinese issuer to list an ETF in Europe

HK-based Fullgoal Asset Management has launched a fixed income ETF on the London Stock Exchange, becoming the first Chinese issuer to list an ETF in Europe independently in its own right. The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF (LSE: RMB3) provides exposure to RMB-denominated bonds issued by the Chinese government and China’s so-called “policy” banks. Michael Chow, Head of International Business and Managing Director at Fullgoal, said: “The Chinese onshore fixed income market is the world’s third-largest bond market. Our fund provides an avenue for overseas investors to access an otherwise not easily accessible market. We believe that, over time, RMB fixed income will become an essential asset class for global investors.”

European equity ETFs rally as fears over Brexit ease

Jun 21st, 2016 | By
ETFs profit as global markets rebound in April

European equity ETFs rose sharply on Monday as investors traded on revised expectations of the outcome of the UK’s EU referendum. The release of new polling data suggest the ‘Remain’ camp may have established a lead ahead of Thursday’s vote on Brexit. Eurozone mega-cap ETFs such as the €5.5bn iShares Euro Stoxx 50 UCITS ETF (Xetra: EXW1) and €4.6bn db x-trackers Euro Stoxx 50 UCITS ETF (Xetra: XESC) were up around 3.2%, as were ‘Footsie’ ETFs such as the £3.6bn iShares Core FTSE 100 UCITS ETF (LSE: ISF) and £2.1bn Vanguard FTSE 100 UCITS ETF (LSE: VUKE). ETFs tracking the CAC 40, DAX and IBEX also took part in the rally, adding around 3.4%, 3.5% and 3% respectively.

BMO cuts fees on five equity and fixed income ETFs

Jun 21st, 2016 | By
BMO expands line-up with seven new ETFs

Canadian investment fund manager BMO Asset Management has cut its fees on five ETFs providing access to the broad Canadian fixed income market, regular and currency hedged exposures to the S&P 500, and investment in the short-term Canadian corporate bond market. The reduction in fees of two ETFs, the BMO Aggregate Bond Index ETF and BMO Discount Bond Index ETF, from 0.20% to 0.09% has earned BMO the title of the lowest-cost provider of fixed income ETFs in Canada.The lower fees will come into effect as of 22 June 2016.