‘ United Kingdom ’

ETF liquidity resilient during market stress, finds FCA

Aug 9th, 2019 | By
SSGA launches USD liquid corporate bond ETF

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.”

EFAMA dismisses concerns over ETF liquidity and counterparty risk

Jul 17th, 2019 | By
EFAMA dismisses concerns over ETF liquidity and counterparty risk

The European Fund and Asset Management Association (EFAMA) has dismissed concerns voiced by the European Central Bank’s semi-annual Financial Stability Review last year relating to potential liquidity and counterparty risks in ETFs, labelling the concerns as ‘misplaced’.

Ultumus and Woodseer Global partner on ETF dividend forecast product

Jul 16th, 2019 | By
Woodseer Global and ULTUMUS partner on ETF Dividend Forecast product

ETF data provider Ultumus and dividend forecasters Woodseer Global have teamed up to launch an ETF Dividend Forecast product. The service provides a forward-looking yield profile for equity ETFs based on the predicted dividend payments of its underlying securities. Bernie Thurston, CEO, Ultumus, said, “Working with Woodseer allows us to provide our clients with a reliable and comprehensive ETF dividend data source which is fully integrated into our service offering.”

UK wealth portfolios to accelerate ETF use, predicts BlackRock

Jul 8th, 2019 | By
Joe Parkin, Head of iShares UK

The proportion of UK wealth portfolios invested in index funds and ETFs will grow by 50% in the next two years, making up around 30% of total UK managed assets, according to a report from BlackRock, the issuer of iShares ETFs. Joe Parkin, Head of iShares UK, said, “There is growing recognition that many of the habits and processes that have got us to where we are today have become outdated and won’t meet the needs of clients in the future. The investment industry is beginning to stir and respond, and while change won’t happen overnight, the direction of travel is clear and irreversible.”

BetaShares to introduce Australia’s first FTSE 100 ETF

Jul 8th, 2019 | By
Australia to welcome its first FTSE 100 ETF BetaShares

Sydney-based ETF issuer BetaShares is set to unveil the BetaShares FTSE 100 ETF (F100 AU) on the Australian Securities Exchange. The fund, which according to Bloomberg is scheduled to begin trading on 17 July 2019, is the country’s first ETF to provide exposure to the UK’s flagship equity market index, the FTSE 100.

UK equity income: an alternative approach

Jun 28th, 2019 | By
WisdomTree rolls out GBP share classes for three oil ETCs

By the ETF Research Team at WisdomTree.

As we enter the latter part of the economic cycle many investors are reticent about dramatically lowering their equity allocations and giving up potential upside but are also wary of market risks both at home and globally. Against this backdrop, investors are considering the benefits of allocating to UK equity income strategies that focus on holding high yielding dividend paying companies.