‘ United Kingdom ’

MSCI: Is Europe more than the sum of its parts?

Oct 10th, 2019 | By
Jean-Maurice Ladure, Executive Director, Head of Equity Solutions Research, EMEA at MSCI.

By Jean-Maurice Ladure, Executive Director, Head of Equity Solutions Research, EMEA at MSCI.

European stock markets are very diverse: Some are large, some are small, but they all have unique histories and characteristics. In this blog post, we examine the pros and cons of investing in European stocks on a regional basis or by individual country via hypothetical index-based strategies.

Solactive launches ESG-screened European dividend index

Oct 9th, 2019 | By
DWS launches ESG-screened short-term EUR corporate bond ETF

Solactive has launched a new European equity index that provides exposure to dividend-paying stocks with low market risk and strong environmental, social, and governance (ESG) characteristics. The Solactive ARC ESG Big Data Europe Index is available for licensing and is suitable to underlie new investment products such as ETFs.

A multifactor approach to developed equity markets

Oct 7th, 2019 | By
A multifactor approach to developed equity markets

By Alejandro Saltiel, Associate Director of Modern Alpha, and Brian Manby, Investment Strategy Analyst, WisdomTree.

International equity markets have made headlines this year for all the wrong reasons. But just because lackluster performance and looming uncertainty have become the status quo in developed markets doesn’t mean investors need to acquiesce and hold on for the ride.

Tradeweb partners with EuroCCP on central counterparty clearing for ETFs

Sep 5th, 2019 | By
Enrico Bruni, Head of Europe and Asia Business at Tradeweb

Over-the-counter trading venue Tradeweb has partnered with equities clearing house EuroCCP to facilitate central counterparty clearing for ETFs traded on its European request-for-quote platform. Commenting on the initiative, Enrico Bruni, Head of Europe and Asia Business at Tradeweb, said, “By offering our clients the ability to centrally clear European ETF trades, we are enhancing the RFQ workflow by introducing a new post-trade process to help investors minimize settlement fails and improve efficiency.”

The pros and cons of currency hedging

Sep 2nd, 2019 | By
Chris Dhanraj, Head of the iShares Investment Strategy team, BlackRock

By Christopher Dhanraj, Head of iShares Investment Strategy, BlackRock.

With the dollar maintaining its strength versus other currencies, the question of whether to hedge that currency effect remains an important one for US investors considering international exposures.

ETF liquidity resilient during market stress, finds FCA

Aug 9th, 2019 | By
ETF liquidity resilient during market stress, finds FCA

The UK’s Financial Conduct Authority has come out in support of ETFs amidst a debate as to whether ETFs, particularly fixed income products, could exacerbate financial instability during periods of market stress. In an investigation the FCA found that while ETF primary markets are highly concentrated, particularly so for fixed income ETFs, evidence suggests that alternative liquidity providers step in during times of market stress, easing concerns about the durability and resilience of liquidity.

LSE reports 17 new ETF listings in July

Aug 9th, 2019 | By
LSE reports 17 new ETF listings in July

Seventeen new ETFs or additional ETF share classes were listed on the London Stock Exchange (LSE) in July 2019. ETF providers active with listings during the month included Invesco, Legal & General Investment Management, Lyxor, JP Morgan Asset Management, Vanguard, and BlackRock.

STOXX recognized as administrator under EU Benchmark Regulation

Jul 31st, 2019 | By
A decade of changing sector exposure for European equities

Index provider STOXX has been recognized as an administrator under the European Union’s Benchmarks Regulation. The regulation, which has been in effect since 1 January 2018, aims to provide investors in index-linked products, such as ETFs, with a greater degree of confidence that these indices will not be subject to manipulation. Steffen Hermanns, Chief Executive Officer at STOXX, commented, “Serving the interest of our clients, STOXX has a long history of providing neutral, transparent and strictly rules-based indices. We strongly support the objectives of the EU Benchmark Regulation, and we are happy to be officially fully compliant with this regulation.”

Is there another Woodford waiting to happen?

Jul 19th, 2019 | By
Is ESG investing a price bubble?

By Laszlo Hollo, Quantitative Research Vice President at MSCI.

When the Woodford Equity Income Fund suspended redemptions on 3 June 2019, it showed how, when a fund’s liquidity profile is misaligned with its shareholder profile and redemption constraints, a single large redemption request can trigger gating.

Should institutional investors be worried about liquidity constraints from other open-end funds? Based on our analysis, a handful of large equity UCITS funds had the potential to find themselves in a situation similar to that of the Woodford Equity Income Fund.

BetaShares FTSE 100 ETF commences trading on ASX

Jul 18th, 2019 | By
BetaShares launches Australian government bond ETF

The BetaShares FTSE 100 ETF (F100 AU) has commenced trading on the Australian Securities Exchange (ASX). The fund is Australia’s first ETF to track the FTSE 100, the UK’s pre-eminent blue-chip equity index. Alex Vynokur, Chief Executive Officer of BetaShares added, “We’re very pleased to have launched the first UK-oriented ETF available on the ASX, which will give investors the ability to specifically allocate UK stocks into their portfolios.”