iShares, the exchange-traded fund platform of BlackRock, has unveiled a series of “factor” ETFs designed for investors seeking to express more distinct views on specific drivers of risk and return. The funds, which have been listed on the London Stock Exchange and Deutsche Börse, further expand BlackRock’s “smart beta” offering, targeting sources of return which cannot be isolated through traditional market capitalisation weighted indices. Each fund provides access to global equity markets and seeks to offer targeted exposure to a specific factor that has historically provided enhanced risk adjusted returns: value, size, quality and momentum.

Vanguard, one of the world’s largest providers of exchange-traded funds, has launched four new ETFs on the London Stock Exchange. The new ETFs provide diversified exposure to UK, developed Europe ex-UK, developed world and North American equity markets and take the total number of Vanguard ETFs on the LSE to 13. Since unveiling its range in May 2012, the provider now has more than $10 billion in European ETF assets under management. Ken Volpert, head of investments for Vanguard in Europe, said: “ETFs are coming of age in Europe as both retail and institutional investors value their low costs, liquidity and transparency.”

Lyxor Asset Management, Europe’s third largest provider of exchange-traded funds, has unveiled an ETF designed for the “brave value investor”. Listed in both London and Paris, the Lyxor UCITS ETF SG Global Value Beta (SGVB) is linked to the SG Value Smart Beta Index, an index developed by quants Andrew Lapthorne (pictured) and Georgios Oikonomou which invests in the 200 cheapest stocks on a sector relative basis in global developed markets. The fund, which has an expense ratio of just 0.40%, should appeal to investors seeking to gain from a share price recovery in companies currently heavily discounted by the market.

Boost ETP, a leading provider of short and leveraged exchange-traded products, has released its latest ‘Short & Leveraged ETFs/ETPs Global Flows Report’. The report highlights the key flows and trends in short and leveraged ETPs across asset classes and geographies in August 2014. Viktor Nossek, Head of Research at Boost, commented: “August saw S&L investors repositioning bullishly in European equities and bearishly in US equities.”

Cerulli Associates, a Boston-based asset management research firm, has published research noting that interest in specific investment outcomes will play a major part in driving institutional exchange-traded fund adoption. Outcome-oriented investment approaches typically ignore conventional benchmarks and instead focus on achieving a particular goal. “Smart beta” strategies appear to have a growing roll in this investment approach. One ETF sponsor told Cerulli that institutional use of smart beta will be a key driver of institutional asset management mandates over the next three years and that exposure will likely come via ETFs.

MSCI, a leading index provider to the exchange-traded funds industry, has released data highlighting the continuing strength of its brand within the ETF market. According to the provider, ETF investors directed a larger proportion of new funds into ETFs based on its indices than any other index provider during the first six months of 2014. The provider also noted that ETF issuers launched more new funds based on its indices than those of any other provider. Baer Pettit, Managing Director and Global Head of MSCI’s index business, said: “We are delighted with these numbers which are further evidence of MSCI’s strength in the ETF market”.

S&P Dow Jones Indices, one of the world’s leading providers of indices to ETFs, has unveiled the S&P Quality Indices, a new family of indices tracking “high quality” stocks. The indices are designed to measure the performance of stocks which score well on three fundamental measures of quality: return on equity, accruals ratio and financial leverage ratio. Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices, said: “The launch of the S&P Quality Index family provides investors with a factor-based benchmark that captures the characteristics of high quality companies.”

First Trust has teamed up once again with relative strength experts Dorsey Wright & Associates (DWA), this time to launch an international equity ETF. Listed on Nasdaq, the First Trust Dorsey Wright International Focus 5 ETF (IFV) is based on a systematic momentum strategy index designed to provide exposure to the five First Trust international equity ETFs identified to offer the greatest potential to outperform. Tom Dorsey, President & CEO of DWA, said: “I am excited that we have collaborated with First Trust to bring a second ETF that captures the Dorsey Wright Focus Five methodology and now provides investors with a tactical international equity strategy.”

MSCI and Barclays have teamed up to a launch a new Green Bond Index, expanding on the Environmental, Social and Governance (ESG) fixed income index family the pair unveiled in June 2013. The Green Bond Index is intended to track the growing market of bonds issued to fund projects with environmental benefits. The index will be available for institutional clients to license for index-linked investment products, such as exchange-traded funds (ETFs).

Global commodity exchange-traded products (ETPs) saw a second consecutive quarter of inflows in Q2 2014, according to ETF Securities, a leading provider of commodity ETPs. Inflows totalled $275 million, up from $271 million of inflows in Q1 2014. Nicholas Brooks, Head of research and investment strategy at ETF Securities, said: “Increasing confidence in the US recovery, a positive turn in China growth after three years of slowdown, and expected further easing measures by China’s policy-makers has boosted prices and investor sentiment towards commodities.”