FTSE Russell has declined to follow fellow index provider MSCI by deciding not to include China A-Shares in the emerging markets classification of the FTSE Global Equity Index Series. The London-headquartered index provider said China A-Shares would remain on the watch list for possible future inclusion. Saudi Arabia has also been made wait, though FTSE Russell said the country was close to upgrade and will be assessed again in March 2018.

Invesco, the asset manager behind the PowerShares brand of ETFs, has agreed a deal to acquire Guggenheim Investments’ ETF business for $1.2 billion in cash. The business includes around $37 billion of assets under management, comprising ETFs such as the $13.8 billion Guggenheim S&P 500 Equal Weight ETF (RSP) and the popular BulletShares suite of defined-maturity bond ETFs. Martin L. Flanagan, president and CEO of Invesco, said: “Guggenheim Investments’ ETF business is highly complementary to Invesco’s, and will enable us to provide one of the industry’s most comprehensive and innovative ranges of smart beta ETFs.”

Advances in technology are changing healthcare. From cell therapy to neuroscience, to big data and nanotechnology, the frontiers of healthcare and medicine are constantly being expanded. The $4.2 billion poured into healthtech start-ups in 2016 shows the vast potential in the area for firms developing cutting-edge healthcare technology solutions. For investors, thematic ETFs such as the iShares Healthcare Innovation UCITS ETF provide a simple way to gain pure-play exposure to this exciting megatrend.

PowerShares Canada has launched the PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (PIB) on the NEO Exchange. As the name suggests, the ETF gives exposure to Canadian investment grade corporate bonds.

The ongoing price war in smart beta ETF fees has the potential to negatively impact the credit ratings of traditional active asset managers as well as smart beta ETF providers, according to credit rating agency Moody’s.

Nasdaq and Taiwan Stock Exchange (TWSE) have signed a memorandum of understanding (MoU) to promote mutual development and foster cooperation between the two companies. The memorandum paves the way for both sides to work closely together in expanding their ETF markets and facilitating the cross-listing of ETFs on both the Nasdaq and TWSE.

ETFs tracking biotechnology and healthcare technology equities have posted impressive recent performance: since 21 August 2017, the Source NASDAQ Biotech UCITS ETF (LON: SBIO) is up 10.2% and the iShares Healthcare Innovation UCITS ETF (LON: HEAL) has returned 5.6%. In comparison, the S&P 500 rose just 2.0% over the same period.

Assets invested in smart beta equity ETFs/ETPs listed globally reached a new record of $607 billion at the end of July 2017, according to data from ETF industry consultant ETFGI. Record levels of assets were also reached at the end of the month for equity smart beta ETFs/ETPs listed in the United States at $538.6bn, in Europe at $44.8bn, in Canada at $14.8bn and in Asia Pacific (ex-Japan) at $5.6bn.

Invesco has announced it has completed its acquisition of European ETF provider Source. The transaction sees Invesco add Source’s $26 billion in assets under management to Invesco’s own existing global ETF AUM of approximately $120bn. Martin L. Flanagan, president and CEO of Invesco, commented: “The addition of Source’s specialist expertise and product innovation to Invesco’s strong and diversified range of investment capabilities will further enhance our ability to meet the investment needs and outcomes our clients seek.”

By John Jacobs and Richard Keary, ETF BILD Project

The industry has done a commendable job of explaining how to launch an ETF; we want to delve into the important activities that are a must for creating a successful ETF after it has been launched.