The “robo-advisor” space continues to gather steam, with Sydney-based BetaSmartz becoming the latest start-up to emerge from this exciting area of FinTech. Aimed at Australian investors, BetaSmartz’s technology utilises a wide universe of low-cost exchange-traded funds (ETFs) and actively managed funds to create portfolios that aim to equal the performance and sophistication of those in use at global fund managers, on a platform flexible, scalable and efficient enough to suit institutions, adviser groups and individuals. John James, Founder and CEO of BetaSmartz, said: “Robo-advice is a buzzword right now, but basically it’s the application of technology to what is otherwise a manual, inefficient process.”

BetaShares, a leading Australian provider of exchange-traded funds, has reported that the Australian ETF industry attracted $104m in net inflows in January despite global instability wiping more than $1bn off the value of locally-listed ETFs. Alex Vynokur, BetaShares’ Managing Director, commented: “This year kicked off with a shaky start for global share markets. Amid this volatility, the exchange-traded fund industry continued to receive positive inflows. It is testimony to the increased depth of products now available in the Australian ETF industry that even in heavily declining markets, investors now have opportunities to protect portfolios during the turmoil.”

While market volatility will continue to fuel the growing popularity of multi-factor smart beta strategies in 2016, there will be greater focus on diversification than trying to predict which factor will dominate, according to asset management research firm Cerulli. “Over the past year as market uncertainty has reigned, multi-factor smart beta strategies have garnered greater interest. We expect total assets under management to continue to increase not only in Europe but in the US and Asia as well,” said Justina Deveikyte, a senior analyst at Cerulli.

Guggenheim Investments, a US-based provider of exchange-traded funds, has introduced the Guggenheim Total Return Bond ETF (NYSE Arca: GTO). The fund is actively managed, investing primarily in investment-grade fixed income securities across multiple sectors. Scott Minerd, Chairman of Investments and Global CIO for Guggenheim Investments, commented: “Our investment team’s rigorous and specialized credit analysis work to uncover attractive duration and yield in otherwise underappreciated asset classes, such as commercial asset-backed securities and collateral loan obligations.”

ETF Securities, a leading provider of exchange-traded funds, has reported that recent indicators of consumer sentiment have been standing in stark contrast to those of investor sentiment. The London-based firm argues that increasing strength in the consumer space has the potential to bring stability to current volatility in asset markets, through the reinforcement of strong fundamentals. This in turn could be positive for the British Pound, which has historically had a strong inverse correlation with volatility.

London-based investment research and advisory firm Elston Consulting has celebrated the one year anniversary since the launch of its two smart beta indexes, reflecting the success of smaller players in the smart beta space.The Elston Strategic Beta Global Maximum Sharpe Index and the Elston Strategic Beta Global Minimum Volatility Index use a risk-based methodology compared to the more commonly used factor-based approach. The dynamic, multi-asset strategies use long-only ETFs and are denominated in British pounds.

iShares, the exchange-traded funds division of asset manager BlackRock, has released a series of animated educational videos aimed at promoting greater knowledge of ETFs among investors and financial advisors. Jennifer Grancio, Managing Director, BlackRock commented: “For BlackRock, education will continue to be a key focus for us as we work to help all types of investors feel confident using ETFs for their investment goals.”

RBC Global Asset Management (RBC GAM), a division of the Royal Bank of Canada, has launched a suite of exchange-traded funds offering international exposure to global companies. Three of the four new ETFs are factor based funds with screens across dividends, quality and value, while the remaining ETF invests in short duration, investment grade, corporate and government securities. All funds are listed on the Toronto Stock Exchange and the new additions bring the total number of ETFs issued by RBC Global to 24. Fees range from 0.22% and 0.64%.

Oppenheimer Funds, a leading global asset manager, has entered the smart beta exchange-traded funds space with the launch of eight new ETFs. All the funds are revenue-weighted and come in direct response to client demand, who want an ETF with the benefits of an active strategy. In December, the firm completed its acquisition of VTL Associates, known for its RevenueShares range of ETFs. It has subsequently re-branded the suite of products, which offers global and regional equity exposures while weighting constituents based on their top line revenue. A revenue-weighted approach may contain benefits over alternative weighting schemes.

Niche index provider Solactive, has unveiled a range of climate-themed investment strategies with the launch of the Solactive SPG Low Carbon Index Family, which includes a first of its kind smart beta tranche. The six indices have been created in collaboration with South Pole Group, a specialist in helping companies reduce greenhouse gas emissions, and utilise a screening process to exclude companies with relatively unfavourable carbon emission record. The indices have been produced with European-, eurozone-, or US-focused exposure. Each index is supplemented with an alternatively-weighted version, which assigns a greater importance to firms with higher dividends and lower volatility.