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.

Peter Sleep, senior investment manager, Seven Investment Management (7IM) takes a look at key developments over the decade that he’s spent with 7IM. He reviews falling fees, the arrival of new players, through to some potential challengers for the future.

New issuer Spinnaker ETF Trust has rolled out its first two ETFs on NYSE Arca under the Fieldstone brand name. The Fieldstone Merlin Dynamic Large Cap Growth ETF (FMDG) and the Fieldstone/UVA Unconstrained Medium-Term Fixed Income ETF (FFIU) are both actively managed and give investors exposure to US large-caps and global fixed income respectively.

By Nicolas Rabener, Founder, FactorResearch

BlackRock estimates that smart beta ETFs will reach $1 trillion in assets by 2020 and $2.4 trillion by 2025. Smart beta is based on factor investing research, which categorises stocks into groups with similar attributes. Although smart beta is based on factor investing and many investors take smart beta as proxies for factors, these are fundamentally different products. In this short research note we will compare the returns of smart beta ETFs and factors.

By Dr. Jan-Carl Plagge, Head of Research – STOXX

Recent political events such as the US and the French election were found to have had a major impact on stock markets. While the impact of such events may often be short-lived, Brexit will remain on the agenda as the country is negotiating its withdrawal from the European Union over the next two years. In this context, investors face a number of challenges when considering such political events in their portfolio management.

Indxx, an index provider headquartered in New York, has launched the Indxx Dominant Dividend Japan Index. The smart beta index gives exposure to 50 high dividend paying stocks domiciled in Japan. Indxx has indicated the index is suitable for use as the underlying for ETF creation.

By Nizam Hamid , ETF strategist at WisdomTree in Europe.

The Indian equity market, we believe, represents one of the most exciting opportunities in emerging markets with a dynamic, fast growing economy underpinned by structural reforms. Improving the business climate is a priority of government policy, with a focus on ease of doing business, bridging the skills gap through training, a domestic investment initiative and reducing bureaucracy.

Virtus ETF Solutions has announced it is to close two of its funds, the Tuttle Tactical Management US Core ETF (Nasdaq: TUTT) and the Tuttle Tactical Management Multi-Strategy Income ETF (Nasdaq: TUTI). Both funds are actively managed and provide multi-asset exposure.

First Trust has announced changes to the First Trust CBOE S&P 500 VIX Tail Hedge Fund (VIXH), transitioning the ETF to a new strategy that will harness investment advisory firm Dorsey, Wright & Associates’ research into relative strength analysis to rotate among large-cap equities and Treasuries. To reflect the changes, the fund will be rebranded the First Trust Dorsey Wright People’s Portfolio ETF (Nasdaq: DWPP).

Deutsche Asset Management is to cross-list the db X-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS (EUR Hedged) ETF (XQUE) on the SIX Swiss Exchange. The fund provides currency-hedged exposure to US dollar (USD) currency denominated tradable debt (bonds) issued by governments or central banks in emerging market countries.