Invesco PowerShares, a leading global provider of exchange-traded funds (ETFs), has announced changes to its US product lineup. The firm, which has more than $97 billion in franchise assets, plans to change the underlying indices and names of ten ETFs. In addition, it has announced plans to close four ETFs, which together represent less than 1% of the ETF provider’s total assets.

Institutional investors report they are increasingly using smart beta exchange-traded funds (ETFs), according to a new study conducted by Cogent Research, a division of Market Strategies International. The study reveals that more than half (53%) of institutional decision makers will increase their use of smart beta ETFs over the next three years – higher than any other ETF category, including market-cap weighted ETFs (48%).

Global exchange-traded fund (ETF) and exchange-traded product (ETP) assets hit yet another record high at the end of November, as the combination of $17.0 billion in net inflows and positive market performance pushed assets to $2.4 trillion, according to preliminary data from ETFGI, a London-based consultancy. Equity ETFs/ETPs gathered the largest net inflows with $18.2 billion, followed by fixed income ETFs/ETPs with $1.1 billion, while commodity ETFs/ETPs experienced the largest net outflows with $1.7 billion.

MTS, one of Europe’s largest electronic fixed income trading venues, is to launch request-for-quote (RFQ) trading for exchange-traded funds (ETFs) via its multi-dealer-to-client MTS BondVision platform. The new service will offer liquidity providers access to a diverse community of global institutional investors and will support ETF products listed on the Borsa Italiana and London Stock Exchange. ETF issuers available via platform will include Amundi, db X-trackers, ETF Securities, iShares, Lyxor, Ossiam, PowerShares, RBS, Source, SPDR and UBS.

Global X Funds, a New York-based provider of exchange-traded funds, has unveiled the Global X Next Emerging & Frontier ETF (EMFM), a new ETF providing exposure to an exciting crop of less developed emerging and frontier market countries. Bruno del Ama, chief executive officer of Global X Funds, said: “Investing in emerging markets continues to be an important strategy for portfolio diversification and growth, but investors must now look beyond more mature [emerging market] economies to regions with accelerating growth rates and expanding populations.”

October 2013 represented another strong month for the global exchange-traded funds (ETFs) and exchange-traded products (ETPs) industry, with net inflows of $32.6 billion combining with positive market performance to push global assets up to a new record high of $2.3 trillion, according to London-based consultancy ETFGI. Year to date through end of October, global ETF/ETP assets have increased by 19% based on positive market performance and net inflows of $202.2 billion.

Brokerage firm Charles Schwab has added 16 new exchange-traded funds to its Schwab ETF OneSource platform. Launched in February, the platform enables investors and advisors to buy and sell 121 ETFs commission-free. The platform includes ETFs from six leading providers: SPDR ETFs, Guggenheim, PowerShares, ETF Securities, United States Commodity Funds, and Charles Schwab.

Invesco PowerShares has announced the launch of the PowerShares China A-Share Portfolio ETF (CHNA) on the NYSE Arca. The ETF is the first to provide exposure to the China A-shares market by investing primarily in FTSE China A50 Index Futures listed on the Singapore Exchange (SGX). Michael Syn of SGX said: “The SGX FTSE China A50 Index Futures is the only offshore futures on the China A-shares market without QFII requirements, and is the most liquid offshore exchange-traded vehicle providing exposure to China A-shares market.”

By David Stevenson – Apologies for sounding like a broken record, but I want to return yet again to the hoary old subject of smart beta and the voguish hunt for minimal volatility. Lyxor’s recent cross-listing of the Lyxor UCITS ETF MSCI World Risk Weighted (WDRL) on the London Stock Exchange has prompted me to ascertain whether the first wave of low volatility ETFs (I include minimum volatility and minimum variance ETFs in this grouping) has actually delivered on their promise.

By David Stevenson – In this column I want to tempt fate and suggest that now might be the time to think again about tiptoeing back into emerging markets and building exposure using ETFs. Now, long-term readers of this column in ETF Strategy will immediately start shaking their head and remind me that I’ve been a fairly optimistic type for some emerging markets for at least the last six months – over which time I’d note emerging markets stocks have started a quiet but steady rebound!