All entries by this author

Investors favour risk-on ETFs in preparation for Trump presidency

Dec 12th, 2016 | By
Investors favour risk-on ETFs in preparation for Trump presidency

Despite analysts predicting a flight from risky assets in the event of Donald Trump winning the US Presidency, it appears as though the opposite has happened, with large inflows into US equity ETFs, particularly financials (+$8.2bn), industrials (+$3.5bn) and healthcare (+$2.0bn), being recorded during November. Gold ETFs, traditionally a safe haven asset, lost $4.5bn in net outflows. Ursula Marchioni, Chief Strategist for iShares EMEA, commented: “The results triggered inflows into US equity ETFs on expectations of President-elect Trump’s pro-growth policies.”


Thomson Reuters Lipper highlights product segments most at risk of ETF closures

Dec 7th, 2016 | By
Thomson Reuters Lipper highlights ETF asset classes most at risk of closure

In a new report, Thomson Reuters Lipper has identified the ten least popular asset classes in Europe and the handful of ETFs within each that are at risk of closing down. The funds range from exotic exposures such as Kuwait equities to broader ETFs such as emerging market corporate bonds. Detlef Glow, Head of EMEA research at Lipper, said: “Some funds in the European ETF market are quite low in assets and may face the risk of being closed in the near future. They are obviously lacking investor interest and might therefore not be profitable for the respective fund promoters.”


Black Friday boosts retail-focused ETFs

Nov 29th, 2016 | By
Black Friday boosts retail-focused ETFs

Record-breaking sales on Black Friday have added a further boost to retail-focused exchange traded funds across Europe and the US. US shoppers on mobile phones bought $3.05bn on Black Friday, adding to sales of almost $2bn on Thanksgiving day, indicating consumer sentiment in the States is still robust after a divisive and, for some, unexpected presidential result. ETFs from iShares and SPDR ETFs which track the S&P 500 Consumer Discretionary Index have risen by 3.7% since 14 November.


Emerging markets ETFs react to Trump’s election victory

Nov 29th, 2016 | By
Is South Korea crowding your emerging markets allocation?

Significant falls in the value of emerging markets ETFs following the US presidential election – the iShares MSCI Emerging Markets UCITS ETF (LON: IDEM) tanked 8.4% in USD terms in the three days after the election – suggest investors believe the asset class could be set for more volatility under a president Trump. Emerging economies may suffer under Trump’s stewardship as his “America First” policy, designed to bring back manufacturing jobs to the US, could dampen domestic demand for exports from around the globe.


Jack Bogle: We are in the middle of a revolution due to indexing

Nov 29th, 2016 | By
Jack Bogle: We are in the middle of a revolution due to indexing

In a new interview with Bloomberg Jack Bogle, founder of Vanguard, has claimed the financial industry is “in the middle of a revolution caused by indexing” due to the inability of active managers to outperform passive benchmarks, coupled with progressively lower fees for index-tracking products. “We’re beyond the beginning, but nowhere near the end,” Bogle said, noting that while indexing was only at 10 to 15% of assets in 2016, it could “easily” get to 50%.


Gold ETFs topple while US equities surge on Trump win

Nov 28th, 2016 | By
Gold ETFs topple while US equities surge on Trump win

Although many market pundits forecast US equity ETFs to plummet and gold ETFs to surge upon the election of Donald Trump, the opposite occurred. Physical gold, seen as a safe haven asset in times of turmoil, has actually fallen by roughly 7% since the election, hindered by rising yields and a stronger dollar. Conversely, the S&P 500, the Dow Jones Industrial Average and the Nasdaq 100 have all risen since Trump was elected, buoyed by his promises to spend more on infrastructure; as well as lower taxes and regulations.


ETF and mutual fund flows show major differences in third quarter

Nov 8th, 2016 | By
Thomson Reuters Lipper highlights ETF asset classes most at risk of closure

While European investors in both ETFs and mutual funds poured into bonds during the third quarter of 2016 in the search for yield, ETF and traditional active fund flows majorly diverged when it came to equities, alternatives and money markets. Detlef Glow, head of EMEA research at Thomson Reuters Lipper commented: “ETFs are often used as short-term investments to gather exposure to specific markets or asset classes, while mutual funds are rather long-term products, since it takes a while until they are producing the expected alpha from the active management.”


Fixed income ETFs dominate top 5 European launches in 2016

Nov 7th, 2016 | By
European ETFs attract €47.9bn net inflows during 2016, finds Morningstar

As of 31 October 2016, 115 ETFs have been launched in Europe this year. Of these funds, three out of the top five in terms of asset-gathering offer fixed income exposure, highlighting the importance investors have placed on finding income and yield. Interestingly, one fund offers exposure to euro corporate bonds with a sustainability overlay, another strong indication of current demand from investors. Jose Garcia-Zarate, Associate Director of Passive Strategies Research at Morningstar Europe, commented: “Ethical and sustainable investing is becoming a strong trend, both for institutional and retail investors.”


ETFs gain ground as active managers suffer asset loss

Nov 1st, 2016 | By
Invesco slashes fees on three US equity factor ETFs

Assets within the world’s 500 largest asset managers have dropped for the first time in half a decade – assets fell by $1.4tn to $76.7tn in 2015, the first decline since 2011, according to research by Willis Towers Watson. Assets at European firms took a big hit, falling by 3.3% to $25.1tn, while assets in US firms fell by 1.1% to $44tn. At the same time, ETF assets have soared from $2.8tn to $3.4tn during the year ended 30 September 2016. Looking at the factors driving this change, many analysts believe this trend is likely to continue.


Six ETFs to play Pfizer’s Q3 earnings report

Oct 31st, 2016 | By
Six ETFs to play Pfizer’s Q3 earnings report

Pharmaceuticals giant Pfizer is due to report its third quarter earnings on 1 November with analysts projecting the company to earn 62 cents a share on $13.05bn in revenue. Over the medium term, investors will also be watching the potential for Pfizer;s new Inflectra drug – set to be launched two years ahead of schedule – and the risk of “major M&A activity over the next 12 months”. Investors looking for tactical exposure to play the possibility the company’s Q3 earnings will beat estimates, may consider several US healthcare sector ETFs from providers such as iShares, SPDR ETFs or Source.