All entries by this author

Robotics ETFs record strong inflows as sector outperforms

Apr 13th, 2017 | By
Pacer launches “Industry 4.0” thematic ETF

According to a note from Bank of America Merrill Lynch, flows into robotic ETFs and mutual funds have grown significantly over the last year, swelling assets from around $5.1 billion to $8.9bn.

Poor active fund returns draw investors into fixed income ETFs

Apr 13th, 2017 | By
Aye Soe, global research director at S&P

New data shows that long-term performance of active bond funds has generally failed to beat the market, pushing more investors towards fixed income exchange-traded funds instead.

Health care ETFs rise as Trump fails to repeal Obamacare

Apr 6th, 2017 | By
KraneShares launches emerging markets healthcare ETF

US-focused health care ETFs are on the rise, having shaken off Donald Trump’s failed Obamacare replacement bill.

Bank ETFs remain buoyant despite Brexit uncertainty

Apr 4th, 2017 | By
Scope Ratings warns investors not to be complacent on AT1 bank bonds

Despite continued uncertainty regarding their operations after Brexit – two-thirds of major financial firms with UK operations are yet to make any public statement about their plans – Europe and UK-focused bank ETFs remain buoyant.

European investors drawn to value ETFs as US bull run continues

Mar 22nd, 2017 | By
ETFs profit as global markets rebound in April

The iShares Edge MSCI USA Value Factor UCITS ETF (LON: IUVL) was Europe’s top selling ETF during February, suggesting investors are seeking to capitalise on the continuing US bull-run while avoiding companies with stretched valuations. The fund, which selects stocks that are relatively undervalued compared to their fundamentals, gathered over $600m during the month.

Hedge fund ETFs in focus

Mar 21st, 2017 | By
Kenneth Heinz, President of Hedge Fund Research

The hedge fund industry experienced its fastest rate of fund closures last year since 2008, according to a report from Hedge Fund Research, leading many investors to explore similar strategies through alternate vehicles, including ETFs. While hedge fund performance was mixed in 2016, Kenneth Heinz, President of Hedge Fund Research, believes performance in 2017 will be strong across a range of strategies, driven by the continuation of macroeconomic normalization.

High yield ETFs see large outflows on Fed rate increase

Mar 21st, 2017 | By
Bridges Capital debuts US equity ETF guided by monetary policy

High yield corporate bond funds suffered large outflows in the first two weeks of March as an interest rate rise in the US and a sinking oil price drove investors away from the asset class. Investors pulled out $5.7 billion from junk bond funds in the week up to 15 March, according to EPFR Global, a provider of flow data on ETF and mutual funds.

Sterling ETFs set for volatility as triggering of Article 50 nears

Mar 15th, 2017 | By
Volatility Shares launches inverse mid-term VIX ETF

Investors in currency ETFs with sterling exposure may need to brace themselves for increased volatility following confirmation that UK Prime Minister Theresa May will trigger Article 50 (the official process whereby Britain begins to leave the EU) this month and Scotland’s First Minister Nicola Sturgeon is preparing for a second referendum on Scottish independence.

ETFs undercutting active equity funds on fees

Mar 9th, 2017 | By
Tabula halves fee on Paris-aligned euro high yield ETF

Almost three quarters of actively managed equity funds in the UK charge an identical annual fee of 0.75%, according to a study from fund manager SCM Direct. While active fund fees remain relatively high, the proliferation of ETFs across the world has forced providers to be more competitive and reduce costs – according to Goldman Sachs, the average typical European equity ETF costs 0.29%.

US Treasury ETFs trend lower in anticipation of interest rate hikes

Mar 7th, 2017 | By
US Treasury ETFs trend lower in anticipation of interest rate hikes

Tough talk from the US Federal Reserve and an anticipated hike in interest rates as soon as next week have seen 10-year US Treasury yields moving sharply higher to 2.5%, its highest point thus far in 2017, with fixed income ETFs dropping as a result. Pricing in the Federal Funds Futures Market is implying a probability of over 80% for an interest rate increase by the Federal Reserve this month.