Archive for May 2012
May 31st, 2012 |
By Simon Smith, CFA
In response to growing demand from IFAs for access to ETFs and in light of regulatory changes, Barclays Stockbrokers has announced that it is re-launching its service for the intermediary market. Feedback from IFAs and the increased use of ETFs across platforms supports the view that demand for ETFs is set to continue to grow in the lead up to the implementation of RDR and beyond.
Posted in ETF and Index News |
Comments Off on Barclays Stockbrokers targets UK IFA market with easy ETF access
Tags: Barclays, ETF Industry News, ETF Launch, United Kingdom
May 30th, 2012 |
By Simon Smith, CFA
Canada-based Horizons ETFs and its affiliate AlphaPro Management have announced the launch of two innovative ETFs which seek to provide exposure to North American stock market indices, while providing protection from so-called “Black Swan” events. The Horizons Universa Canadian Black Swan ETF (HUT) and the Horizons Universa US Black Swan ETF (HUS.U) are the first ETFs to be launched that pair a tail-risk hedge with an equity index investment.
Posted in Alternatives / Multi-Asset |
1 Comment »
Tags: Alternatives, Equities, ETF Launch, Horizons, United States and Canada
May 30th, 2012 |
By Simon Smith, CFA
Credit Suisse has found itself on the end of a class action lawsuit following the dramatic collapse in the price of VelocityShares Daily 2x VIX Short Term ETNs (TVIX) earlier this year. Wolf Haldenstein Adler Freeman & Herz, a New York-based law firm, has filed a class action lawsuit against the investment bank on behalf of investors who lost money when the ETNs fell approximately 60% in just two days.
Posted in Alternatives / Multi-Asset |
Comments Off on Lawsuit filed against Credit Suisse for VelocityShares TVIX ETNs debacle
Tags: Alternatives, Credit Suisse, ETF Industry News, ETNs and ETCs, Leveraged and Inverse ETFs
May 30th, 2012 |
By Simon Smith, CFA
Volatility related to political and economic uncertainty in Europe may create buying opportunities in US corporate credit and emerging markets debt, according to a report issued by Standish Mellon Asset Management, part of BNY Mellon. “During periods of high uncertainty that could arise because of eurozone issues, we believe there could be buying opportunities for US corporate credit and emerging market sovereign bonds, which appear to have attractive fundamentals,” said Thomas D. Higgins, global macro strategist.
Posted in Fixed Income |
Comments Off on Eurozone volatility may create ETF buying opportunities
Tags: Emerging and Frontier, Fixed Income, iShares, Lyxor, Pimco, Source, SSGA SPDR, Themes and Strategy, United States and Canada
May 29th, 2012 |
By Simon Smith, CFA
Data released by the IMF last week shows that the official sector has continued to buy gold in large quantities this year. In particular, emerging market central banks have been major acquirers as they look to diversify their reserves away from traditional reserve currencies. For investors wanting to follow the lead of emerging market central banks or indeed capitalise on their continued gold buying, physically-backed gold ETCs are, aside from buying bullion itself, the most direct route into the metal.
Posted in Commodities |
Comments Off on Physical gold ETCs should benefit from continued EM central bank buying
Tags: Commodities, DWS Xtrackers, ETF Securities, ETNs and ETCs, Gold and Precious Metals, iShares, Source, Themes and Strategy
May 29th, 2012 |
By Simon Smith, CFA
BlackRock and Bloomberg have announced the industry’s first consolidated view for European iShares ETFs, designed to reduce market fragmentation and improve liquidity and transparency. A consolidated view lets investors see the most competitive bid/offer prices and the locations of best liquidity. The comprehensive picture is created by Bloomberg, using its European Composite tickers, which aggregate volume and trading data for reported over-the-counter and exchange traded transactions.
Posted in ETF and Index News |
Comments Off on BlackRock and Bloomberg to offer ‘consolidated tape’ for iShares ETFs
Tags: ETF Industry News, Europe, iShares
May 28th, 2012 |
By Simon Smith, CFA
Credit rating agency Moody’s has pointed to some unusual institutional block-trading activity in SSgA’s high yield bond ETF (JNK), which, if reflective of a rising trend across all ETFs, could prove detrimental to retail investors and ultimately harmful to ETF sponsors. The activity relates to an in-kind redemption on JNK earlier this month in which an institutional investor redeemed 19.7m shares worth $780m, causing the ETF’s price to drop from an approximate 40 bp premium to NAV to a 127 bp discount.
Posted in ETF and Index News |
Comments Off on Moody’s highlights risks of increasing institutional ETF use
Tags: ETF Industry News, Fixed Income, High Yield, United States and Canada
May 28th, 2012 |
By Simon Smith, CFA
Last week’s news that Moody’s had upgraded Ford Motor Company to investment grade status marked the latest step in a remarkable turnaround for the company. This was the second such upgrade to Ford’s debt in as many months, following a similar move by Fitch in April. The turnaround and eventual upgrade of Ford highlights the opportunities that can exist in ETFs tracking high-yield corporate bonds – and in particular those tracking a segment known as “Fallen Angels”.
Posted in Fixed Income |
Comments Off on Ford’s credit rating upgrade demonstrates potential of high-yield bond ETFs
Tags: ETF Industry News, Fixed Income, High Income, High Yield, Themes and Strategy, United States and Canada, VanEck Vectors
May 28th, 2012 |
By Simon Smith, CFA
Last week saw the unveiling of a global macro allocation index from Dow Jones Indexes, reflecting a growing interest in more sophisticated proprietary-model-based indices. The Dow Jones Parala Global Sector Macro Allocation Index, launched in collaboration with London-based investment adviser Parala Capital, is underpinned by a proprietary macro allocation model which analyses broad economic and market trends with the aim of anticipating the return performance of equity sectors.
Posted in ETF and Index News |
Comments Off on Dow Jones and Parala Capital unveil global macro allocation index
Tags: Dow Jones Indexes, Equities, ETF and Index News, Global
May 25th, 2012 |
By Simon Smith, CFA
JP Morgan’s proposed physical copper ETF, the JPM XF Physical Copper Trust, has drawn criticism from several industrial copper users who fear the fund would “disrupt the world market”, “inflate prices” and ultimately “wreak havoc on the US and global economy.” These views, believed to originate from Southwire, a major US manufacturer of electrical wire and cable, and Red Kite, a London-based hedge fund and metals trader, were contained in a letter sent to the SEC.
Posted in Commodities |
Comments Off on JP Morgan’s planned copper ETF could “wreak havoc”
Tags: Commodities, DWS Xtrackers, ETF Industry News, ETF Launch, ETF Securities