All entries by this author

Three ETFs to play Amazon’s upcoming Q3 earnings report

Oct 24th, 2016 | By
ProShares adds online retail ETF to thematic suite

European investors who believe that Amazon may beat analysts’ expectations when it reveals its third quarter earnings on 27 October, may wish to consider European-listed equity sector ETFs that offer exposure to the consumer discretionary giant. The SPDR S&P US Consumer Discretionary Select Sector UCITS ETF and the iShares S&P 500 Consumer Discretionary Sector UCITS ETF offer the largest exposures at 13.7% while the globally-focused SPDR MSCI World Consumer Discretionary UCITS ETF still has Amazon at 7.9%. Analysts are expecting Amazon to earn 80 cents a share on $32.69bn in revenues between July and September.

European investors rush to US and emerging markets ETFs

Oct 24th, 2016 | By
European ETFs attract €47.9bn net inflows during 2016, finds Morningstar

European-listed equity ETFs have seen positive inflows of €4.6bn between July and September, the first quarter of positive inflows this year as investors poured €2.5bn into US large cap and €3.3bn into emerging market ETFs. Jose Garcia-Zarate, Associate Director of Passive Strategies Research for Morningstar, notes that the relative strength of the US market, and a more positive outlook for emerging markets, are significant factors driving these flows.

UK gilt ETFs hit as yields reach post-Brexit highs

Oct 20th, 2016 | By
BOE announces dovish rate hike

Investors in UK gilt ETFs have been hit by yields reaching their highest point since Brexit this week – 10-year gilt yields struck 1.2% on 17 October, more than double its low point of 0.52% on 12 August. London-listed ETFs tracking UK gilts, such as those from iShares, SPDR ETFs and Lyxor, have all seen their values eroded over this period. According to Laith Khalif, senior analyst at Hargreaves Lansdown, investors should not however be overly concerned over further price falls. “Income-starved investors can only ignore rising yields for so long, before they get tempted in, which puts something of a floor under the bond market,” she said.

US ETF providers generate $6bn in annual revenue

Oct 19th, 2016 | By
High yield ETFs attracting significant inflows

The ETF industry has a revenue-generating potential of around $6bn per year in the US alone, according to data from FactSet Research Systems. The figure, approximated by summing the “annual revenue potential” of each US-listed ETF, is mainly derived from low-cost, “plain vanilla” ETFs which generate roughly $3.8bn in revenue. More exotic and specialised products, although making up just 28% of US ETF assets, generate a healthy $2.2bn in revenue due to their ability to command higher fees.

Interest rate cut may prove bullish for Indian equity ETFs

Oct 10th, 2016 | By

The Reserve Bank of India (RBI) cut the country’s main interest rate last week to a six year low of 6.25%. The move, undertaken swiftly after the appointment of new RBI Governor Urjit Patel (pictured), was reportedly undertaken in response to slowing global growth and weaker trade statistics. Lower interests rate tend to promote higher borrowing from firms, potentially spurring growth in the private sector. ETFs listed on the London Stock Exchange from Amundi, Lyxor, db X-trackers and a new fund from Italian wealth management firm Lemanik, all provide exposure to Indian equities.

Vanguard founder John Bogle: Buy total market ETFs and avoid “marketing gimmicks”

Oct 4th, 2016 | By
Jack Bogle: We are in the middle of a revolution due to indexing

Investors should pick diversified total market exchange-traded funds and hold them for the long term, rather than buying into “marketing gimmicks”, according to the founder of Vanguard, John Bogle (pictured), and its former Chief Investment Officer, Gus Sauter. Bogle, who left Vanguard in the 1990s, has frequently encouraged higher ethical standards and called out some companies and investors for using ETFs for “less than noble purposes”. He said he appreciated that ETF fees were generally low, but the increasing number of so-called “fringe ETFs” – funds that invest in obscure and niche corners of the market – are encouraging investors to bet on anything from Chinese tech companies to soybeans.

Soft commodity ETFs surge as coffee and sugar prices jump 20%

Oct 4th, 2016 | By

Soft commodity exchange-traded funds and exchange-traded commodities have received a boost in recent months thanks to sharp price increases in the futures contracts for sugar and coffee. Droughts, heavy rain and frost in Brazil have driven up the prices of both food stuffs by more than 20% in the past few months, according to a note from Rabobank. The $47m ETFS Coffee ETC (LSE: COFF), is up more than 13% year to date and just over 2% in the last three months, while the $26m ETFS Sugar ETC (LSE: SUGA) is up 44.6% and just over 10% over the same periods.

ETFs react to first Clinton-Trump presidential debate

Sep 28th, 2016 | By

A record-breaking 100 million people tuned in to the first US Presidential debate on Monday night. While both the Clinton and Trump camps claimed victory, the markets perceived that Clinton had drawn first blood. Equity ETFs rallied as Clinton’s win seemed to provide relief from the prospect of a Republican victory and the potential uncertainty that could unravel in that scenario. Also boosted after the event were currency ETFs with long Mexican peso or Canadian dollar exposures, fighting back against the threat of Trump tearing up existing trade agreements with these countries.

Yahoo hack exposes potential for cyber security ETFs

Sep 28th, 2016 | By
Yahoo hack exposes potential for cyber security ETFs

Yahoo has announced the hacking of some 500m names, email addresses and passwords – the largest corporate data breach in history. The news not only highlights the growing scale of security problems but also the potential for growth in the cybersecurity industry, predicted to grow to $202.3bn by 2021 according to research firm MarketsandMarkets. Investors may gain access to the cybersecurity industry through ETFs offered by PureFunds, First Trust and ETF Securities.

UK REIT and Financial ETFs still at risk post Brexit vote?

Sep 26th, 2016 | By
UK REIT and Financial ETFs still at risk post Brexit?

According to a recent statement from the Bank of England, the UK may still face a “challenging period of uncertainty and adjustment” in the wake of the Brexit referendum. The Bank’s Financial Policy Committee said that although immediate capital market volatility has calmed down since June, there remain elevated risks, such as the threat of a “sharp adjustment” in the commercial property market and the danger that foreign investors could divest from the UK. UK property ETFs such as the iShares UK Property UCITS ETF (LON: IUKP) are down roughly 10% year-to-date.