London-based ETF research and consultancy firm, ETFGI, has reported that smart beta equity ETFs/ETPs assets have experienced a 5-year compound annual growth rate of 30.6%, according to data up to the end of January 2017. The data also reveals that assets invested in smart beta equity ETFs/ETPs listed globally reached a new record high of $534 billion at the end of January 2017.

Billionaire Warren Buffett, whose stock picks over several decades have enriched generations of Berkshire Hathaway Inc shareholders, delivered a black eye to the investment industry on Saturday, urging ordinary investors to buy plain-vanilla index funds. “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients,” Buffett said in his annual letter to shareholders. “Both large and small investors should stick with low-cost index funds,” he added.

Satrix Managers, the company to launch the first ETF in South Africa, has added two new funds to its suite of ETFs – the Satrix Property ETF (JSE: STXPRO) and Satrix Inflation-Linked Bond ETF (JSE: STXILB). Satrix chief investment officer, Helena Conradie, commented: “Satrix will stay relevant and will remain the resonant voice in the South African indexing industry. We will continue to write real stories in the lives of real people.”

The VanEck Vectors Morningstar US Wide Moat UCITS ETF (LON: MOAT) has returned 31.3% over a one-year period ended 31 January 2017, outperforming the S&P 500 Index’s 20.0% return over the same time frame. According to recent Morningstar data, the US-listed version of the fund is in the top percentile for the US large blend category for the past 12 months (out of a universe of 1,415 funds).

The Index Industry Association (IIA), a New York-based not-for-profit organisation, has released survey data revealing that the growth of smart beta has been the most significant driver of innovation in the sector, according to its members. IIA members include MSCI, FTSE Russell and S&P Dow Jones, all leading index providers to the ETF industry.

The iShares Core S&P 500 UCITS ETF (LON: CSPX) has become the first Europe-listed ETF to surpass $20bn in AUM. Bullish US equity markets (the underlying S&P 500 Index is up 26.0% over the past year) and strong fund net inflows (iShares reports US equity ETFs listed globally amassed $19.3bn in net new assets in January 2017 alone) worked together to tip the ETF past the threshold.

IndexIQ has launched the IQ S&P High Yield Low Volatility Bond ETF (NYSE: HYLV), a factor-based fixed income ETF designed to provide exposure to high yield bonds from US issuers while capturing returns attributable to investing in the low volatility factor. The move is the latest step to expand the firm’s factor-based fixed income ETF range following the launch last year of two ETFs tracking bond sectors displaying the strongest positive total return momentum.

ETFs are dominating trading on American exchanges, and research suggests this trend is coming to European shores, although at a slower rate. Currently constituting 30% of all US trading by value, and 23% by share volume, ETFs made up seven of the ten most actively traded securities on US stock markets last year. In Europe ETF and ETP trading activity is also growing – on the London Stock Exchange alone, trading value in December grew by 63.5% compared to December 2015.

S&P Dow Jones Indices has launched the S&P Global Revenue Exposure Indices, measuring the performance of companies dominating revenue streams from targeted regions internationally. The indices are derived from leading financial benchmarks, including the S&P 500, S&P/TSX 60, S&P/TOPIX 150 and the S&P Europe 350. Philip Murphy, Vice President, Product Management, at S&P Dow Jones Indices, commented: “The S&P Global Revenue Exposure Indices are an opportunity for targeted equity exposure, as they represent the markets that hold the greatest influence to a company’s top line.”

Europe-listed US equity ETFs raised €0.9bn of net inflows in December, thanks predominantly to strong demand for the iShares Core S&P 500 UCITS ETF (LON: CSPX) which by itself generated net gatherings of €0.6bn. Despite several predictions of a drop in US markets following Trump’s election, the equity rally has largely continued with Trump’s anti-regulation rhetoric turning fear to optimism and encouraging investors back into the market.