Risk specialists Axioma and index provider China Securities Index (CSI) are to collaborate on a new series of smart beta strategy indices on China’s A-share market. The indices, which will be distributed by CSI, will be based on the popular CSI 300 index.

Leveraged exchange-traded funds (ETFs), which provide magnified exposure to various financial markets, have provided everyday investors with powerful hedging and speculative trading instruments that were once the reserve of institutional investors. These instruments typically provide two or three-times exposure – long or short – to a specific index tracking equities, bonds, commodities or currencies.

SSgA has announced the launch of the SPDR Russell 1000 Low Volatility ETF (LGLV) and the SPDR Russell 2000 Low Volatility ETF (SMLV) on the NYSE Arca. The exchange-traded funds (ETFs) are designed to provide investors with exposure to large-cap and small-cap US equities, respectively, with reduced risk. The funds are based on low-volatility versions of the widely followed Russell 1000 and Russell 2000 indices.

Charles Schwab’s in-house suite of exchange-traded funds (ETFs), known as Schwab ETFs, has passed the $10 billion assets under management milestone, less than three and a half years after its first ETFs were launched in November 2009. The US-listed ETFs, which are among the cheapest globally in terms of annual fees, have benefited from investors’ search for core, low-cost portfolio building blocks, as well as the general shift towards passively managed products.

Invesco PowerShares, a leading global provider of exchange-traded funds (ETFs), is to expand its suite of low-volatility ETFs with the launch of new strategies covering the US mid-cap and small-cap segments. The new PowerShares S&P MidCap Low Volatility Portfolio ETF (XMLV) and PowerShares S&P SmallCap Low Volatility Portfolio ETF (XSLV) are to be listed on the NYSE Arca and take the suite to five funds.

Risks continued to ease in the fourth quarter of 2012, with no signs of a reversal ahead, according to risk specialists Axioma. Melissa Brown, Senior Director of Applied Research at Axioma, said: “The decline in risk should give investors the opportunity to focus on achieving active returns.” With predicted risk considerably reduced, now could be the time for risk tolerant sophisticated investors to consider tactically adding a degree of leverage to their portfolios via leveraged exchange-traded funds (ETFs) offering geared exposure to various markets.

Listed private equity exchange-traded funds (ETFs) have been on a tear this year, led by stocks such Blackstone, Carlyle, KKR & Co and 3i, which have added between 15% and 25%. The two main indices measuring the performance of this segment of the financials sector, the S&P Listed Private Equity Index and the Red Rocks Global Listed Private Equity Index, both of which are investable via ETFs, have gained 9.8% and 9.5% respectively, far outpacing the overall equity market.

The European luxury goods sector has risen strongly in the last three months, driven by a discernible improvement in sentiment, most notably in Asia following a smooth transition of leadership in China. The MSCI Europe Textiles, Apparel & Luxury Goods Index has gained 21.5% while the broader MSCI Europe Consumer Discretionary Index, which also includes Europe’s high-end automobile manufacturers, an important luxury segment, has added 14.1%. This latter index, which is brimming full of luxury brands, is accessible to investors via a number of ETFs.

Invesco PowerShares’ suite of ‘DWA Technical Leaders’ exchange-traded funds (ETFs) saw assets grow by 50% in 2012, passing through the $1 billion milestone. Asset growth was driven by a combination of inflows and strong performance. The ETFs, which are based on the Dorsey Wright & Associates (DWA) relative strength index methodology, were among the first factor-driven ETFs available in the US marketplace.

Market Vectors has announced that the NYSE Arca-listed Market Vectors Solar Energy ETF (KWT) is to adopt an in-house index. The fund currently tracks the Ardour Solar Energy Index, an index designed by alternative energy specialists Ardour Capital Investments, but will switch to the Market Vectors Global Solar Energy Index in March.