All entries by this author

Oil ETP investors should consider taking profits as speculators move in

Jun 21st, 2016 | By
WisdomTree Europe warns of future volatility in oil ETPs

ETPs linked to the performance of oil futures have enjoyed significant gains over the past five months as the commodity has rallied from multi-year lows. The possibility of further gains, according to WisdomTree Europe, may be optimistic as the commodity is trading broadly in line with its fundamentals. Viktor Nossek, Director of Research at WisdomTree Europe, commented: “It was easy for investors to be bullish when oil traded below $30, but given the scale of the recovery we have seen in the last four months, it is hard to make the case that oil looks undervalued now. Indeed, the recovery means it is now in line with its long-term historic price.”


VanEck lowers fees on Fallen Angel High Yield Bond ETF

Jun 21st, 2016 | By
Are fallen angel ETFs preparing to soar?

US-based exchange-traded fund provider VanEck has reduced the net expense ratio of the VanEck Vectors Fallen Angel High Yield Bond ETF (NYSE Arca: ANGL) from 0.40% to 0.35%. The ETF invests in ‘fallen angels’ – a term used to describe bonds that were rated as investment grade at the time of their original issuance, but which have since lost their investment-grade status. The fund may offer a value proposition to investors owing to research suggesting that fallen angels are often oversold prior to their downgrade to junk status. ANGL has delivered a strong performance in 2016, returning 13.7% through to 31 May based on net asset value.


Direxion launches inverse leveraged US high yield bond ETP

Jun 20th, 2016 | By
EQM and XOUT unveil US equity index that exes out potentially vulnerable stocks

Short and leveraged exchange-traded fund provider Direxion has launched a new fund offering investors double the inverse daily performance of an index of US-listed high yield bonds. The Direxion Daily High Yield Bear 2X Shares (HYDD) has begun trading on the NYSE Arca. he fund’s reference index is the Barclays US High Yield Very Liquid Index, which tracks US dollar-denominated, non-investment grade, fixed-rate, taxable corporate bonds that have a remaining maturity of at least one year and $600m or more of face value outstanding.


WisdomTree cross-lists Boost inverse and leveraged oil ETPs to the LSE

Jun 20th, 2016 | By
USCF adjusts rolling strategy for world’s largest oil ETF

WisdomTree Europe has cross-listed a suite of Boost-branded exchange-traded products on the London Stock Exchange, offering investors up to 3x short and leveraged exposure to the price of oil. The ETPs, which are offered in US dollar and British pound share classes, have their primary listings on the Borsa Italiana. Viktor Nossek, Director of Research at WisdomTree Europe, said: “Oil remains an important area of investor interest due to its macro-economic and geopolitical characteristics. The record traded turnover this year of close to $2.4bn in the Boost WTI 3x Oil S&L ETPs, on Borsa Italiana, is a testament to the efficiency and attractiveness of these products for investors looking to take short term tactical views on the price of oil.”


Japanese equity ETFs slide on BoJ policies and Brexit fears

Jun 17th, 2016 | By
Mitsubishi launches low-cost US and global equity ETFs in Japan

Japanese equity exchange-traded funds have experienced significant declines recently as traders reacted to the Bank of Japan’s decision not to add further monetary stimulus and the upcoming Brexit vote weighed heavily on risk sentiment. The iShares MSCI Japan USD Hedged UCITS ETF (LSE: IJPD) and the SPDR MSCI Japan EUR Hedged UCITS ETF (LSE: JPEH), two of the largest funds to cover the space, are both down 9.3% between 31 May and 16 June 2016.


Deutsche rolls out eurozone ‘Yield Plus’ corporate bond ETF

Jun 16th, 2016 | By
Deutsche Asset Management expands fixed income smart beta suite with new emerging markets ETF

Europe’s second largest provider of ETFs Deutsche Asset Management has expanded its ‘Yield Plus’ ETF range with the launch of the db x-trackers iBoxx EUR Corporates Yield Plus UCITS ETF (Xetra: XDEP) that provides exposure to the euro-denominated corporate bond market via the Markit iBoxx EUR Corporates Yield Plus Index. Martin Weithofer, Deutsche Asset Management’s Head of Strategic Beta, commented: “The strategic beta corporate bond index that our new ETF tracks offers a significant yield pick-up versus it’s non-yield plus equivalent, with moderately increased risk characteristics and almost identical duration.”


First Trust launches actively managed EM equity ETF

Jun 16th, 2016 | By
NH-Amundi launches long-term Korean Treasury ETF on KRX

Exchange-traded fund provider First Trust Advisors has launched the First Trust RiverFront Dynamic Emerging Markets ETF (Nasdaq: RFEM), an actively managed ETF sub-advised by RiverFront Investment Group, which seeks to provide capital appreciation through exposure to emerging market economies. “Emerging market equities are dynamic and quickly-evolving, brimming with both opportunities and risks. We believe this actively managed ETF may provide significant advantages versus ETFs tracking traditional beta benchmarks, particularly when it comes to security selection, asset allocation, and managing currency risk,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.


Economic fundamentals present compelling case for Turkish ETFs

Jun 16th, 2016 | By
Blue Mosque Turkey

Earlier this month asset manager Zyfin launched the first UCITS-compliant exchange-traded fund tracking the Turkish sovereign bond market, increasing the range of investment opportunities available to European ETF investors. With a weighted average return at around 9.5% the fund will appeal to long-term investors searching for higher yields in growing emerging markets. However, higher yields mean increased risks and investments within Turkey contain significant currency, inflationary and idiosyncratic risks requiring closer examination to determine whether it is suitable to hold in an investment portfolio.


Columbia Threadneedle launches equity income smart beta ETFs

Jun 16th, 2016 | By
Columbia Threadneedle launches equity income smart beta ETFs

Global asset manager Columbia Threadneedle Investments has launched three smart beta exchange-traded funds targeting global, international or US-listed dividend paying firms. The suite of rules-based, factor-driven, smart beta ETFs – called the Columbia Beta Advantage family – are launched on NYSE Arca. Each ETF’s custom-designed index is calculated by MSCI. To construct the indices, all securities from their parent index are screened according to their MSCI environmental, social and governance (ESG) scores, as well as their dividend yields. Smart beta ETFs are predicted to boom with BlackRock’s iShares predicting an annual organic growth rate of 19% to reach total global assets of $1tn by 2020.


Morningstar: high yield bond ETFs relieve market stress during volatility

Jun 15th, 2016 | By
European ETFs attract €47.9bn net inflows during 2016, finds Morningstar

In a latest study released by investment research house Morningstar, the firm found that high yield bond exchange-traded funds play a significant role in relieving market stress during volatile periods. Morningstar’s report – “High-Yield Bond ETFs – A Primer on Liquidity” – questions the vehicle’s presumed role in market instability, and outlines the crucial differences between the ETFs’ primary and secondary layers of liquidity. Jose Garcia-Zarate, Senior ETF Analyst for Morningstar’s European Passive Fund Research, commented: “Our analysis suggests that far from being agents of instability, high-yield bond ETFs have acted as a safety valve, allowing investors to express their investment views without unduly affecting the underlying market.”