New research from ETF Securities argues that the shape of the US yield curve indicates the US economy could be approaching a peak. The yield curve has been flattening since 2009 and Morgane Delledonne, fixed income strategist at ETF Securities, thinks it is approaching levels that indicate the US business cycle might be nearing a turning point.

WisdomTree has announced plans to close and liquidate three of its actively managed ETFs. The three funds offer exposure to global corporate bonds, an unconstrained fixed income portfolio, and a portfolio of inflation-hedging assets.

By Oliver Smith, portfolio manager at IG Group.

In recent years the number of ETFs available on the London Stock Exchange has exploded, with sector, smart beta and actively managed ETFs taking their place alongside mainstream index trackers. But are they the most effective way for investors to get long and short exposure to markets? 

A new type of actively managed ETF, which avoids disclosing portfolio holdings, has drawn interest from several major asset managers who have filed applications with the SEC to use the technology. Designed by Precidian Investments, a minority investment of Legg Mason, the ‘ActiveShares’ structure is being sought after by JPMorgan Chase, BlackRock, Capital Research, as well as Legg Mason affiliates ClearBridge and Royce.

Global asset manager Columbia Threadneedle has announced it is closing four of its ETFs, currently trading on NYSE Arca, including both of its actively managed funds, the Columbia Core Bond ETF (GMTB) and the Columbia Intermediate Municipal Bond ETF (GMMB).

A note from S&P Dow Jones Indices (S&P DJI) looking at the levels of volatility indicators such as the VIX Index, aka the ‘fear gauge’, shows that the market is “intensely relaxed” as most volatility measures are down, and several to unusually low levels. Investors wishing to protect their portfolios from a future upturn in the VIX however, may wish to consider one of several ETF-based approaches.

By Eng Teck Tan, senior portfolio manager – Asian equity at Nikko Asset Management.

Following four years of intense consultation and three failed attempts, MSCI has just added China A-Shares into its international indices. We view this as expected and in some ways, long overdue. Although the initial size of the inclusion is symbolic in nature, the implications are far reaching.

MSCI has announced that it will include China A shares in its widely followed MSCI Emerging Markets and MSCI ACWI indices from June 2018. Remy Briand, Managing Director and Chairman of the Index Policy Committee at MSCI, said, “International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion.”

Smart beta ETF provider Ossiam has announced it is implementing changes to the Ossiam US Minimum Variance ETF to include ESG screening and switch from synthetic to physical replication. As a result, the name of the ETF will change to Ossiam US Minimum Variance ESG ETF (LON: USMV).

Lyxor has opted to close the US dollar share class on six of its European-listed ETFs. After the action, the C-EUR share class will continue to trade, having absorbed remaining assets within the C-USD share class.