Americas ETP News
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Vanguard steps up push into financial advice
June 23, 2021--World's second-largest asset manager expects lower fees will help expand the market
Vanguard is betting that demand for financial advice will explode over the next decade, as the world's second-largest asset manager steps up its push into the fragmented market.
The Pennsylvania-based...
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Source: ft.com
Engine No. 1 rolls out $100 million ETF after Exxon board victory
June 22, 2021--Engine No.1 is launching an exchange traded fund (ETF) with $100 million in assets, a bet Main Street investors want portfolios to back environmental, social and governance (ESG) proposals on the heels of the hedge fund's boardroom victory at ExxonMobil, company executives said.
Roughly four weeks after shareholders broadly supported Engine No. 1's call for Exxon to improve its financial performance and overhaul its clean energy strategy by electing three of its directors to the oil giant's board, the new firm is rolling out Transform 500 ETF, whose ticker will be "VOTE".
The new ETF will invest in the 500 biggest U.S. stocks and track the Morningstar U.S. Large Cap Select Index.
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Source: reuters.com
SEC Wants More Climate Disclosures. Businesses Are Preparing for a Fight
June 21, 2021--Asset managers push for more information; energy, transportation companies say climate-change risks aren't easily measured
The Securities and Exchange Commission is preparing to require public companies to disclose more information about how they respond to threats linked to climate change-and businesses are gearing up for a fight.
The SEC's new chairman, Biden administration appointee Gary Gensler, has said climate-related disclosure is a top priority, and President Biden met Monday with Mr. Gensler, Treasury Secretary Janet Yellen, and other top financial regulators to discuss the issue. The SEC has already sought industry input, much of which arrived last week, for a rule proposal that could be issued by October.
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Source: wsj.com
Net flows into inflation-linked ETPs surge to a record $4.4bn in May
June 21, 2021-Dash for inflation protection was in progress before the announcement US consumer price inflation hit 29-year-high
Net flows into inflation-linked exchange traded products, which aim to protect investors from the ravages of monetary debasement, hit a record $4.4bn in May -even before it emerged that core US consumer price inflation hit a 29-year high that month.
In just five months of 2021, the $18bn in net flows into linker ETPs have already surpassed 2020's full-year record of $17.3bn, according to data from BlackRock.
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Source: ft.com
BlackRock aims to generate half of US ETF flows from adviser models
June 18, 2021--Packaged portfolios already accounted for a third of the managers net US ETF sales in 2020
BlackRock has set a goal for half of its US ETF flows to come from adviser models, executives have said, adding that the manager has been investing in the products, technology tools and distribution relationships to make that happen.
Last year, about a third of BlackRock's US ETF net sales came...
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Source: ft.com
ETFs to turn to as Fed sets stock market up for rising interest rates; GameStop heads to IWF
June 17, 2021--It is time to talk about talking about ETFs. Yes that's a riff off what Federal Reserve chair, Jerome Powell, said about the central bank slowing bond purchases, as it's just not possible to ignore the impact of Wednesday's move by the Fed to start negotiating the fraught process of peeling back its easy-money policies, while dealing with the economic recovery from the global epidemic.
We won't bore you with the particulars, but the Fed might hike interest rates earlier than expected, penciling in two rate increases in 2023. You can read about what Chairman Jerome Powell said and did here and the market’s reaction here and here and here, and the Fed's view on interest rates here and on inflation.
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Source: marketwatch.com
Federal Reserve Board and Federal Open Market Committee release economic projections from the June 15-16 FOMC meeting
June 16, 2021--June 16, 2021--In conjunction with the Federal Open Market Committee (FOMC) meeting held on June 15-16, 2021, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2021 to 2023 and over the longer run.
Each participant's projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policy-including a path for the federal funds rate and its longer-run value-and assumptions about other factors likely to affect economic outcomes.
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Source: federalreserve.gov
Federal Reserve issues FOMC statement
June 16, 2021--The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened.
The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy will depend significantly on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.
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Source: federalreserve.gov
Cyclical rally exposes flaws in some factor ETFs
June 16, 2021--As the market shifts, investors should be asking if their funds are still serving their purpose.
The cyclical rally of the past half year may have reignited the debate about value stocks, but it has also had a knock-on effect on other investment styles. Having already fed into associate editor Algy Hall's blue-chip momentum stock screen, a value tilt in momentum strategies has now become evident among funds such as iShares Edge MSCI USA Momentum Factor Ucits ETF (IUMO).
This exchange traded fund's recent half-yearly rebalancing has seen it tilt heavily away from growth stalwarts towards cyclical names.
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Source: FT.com
Fed signals higher rates in 2023, bond-buying taper talks as virus fades
June 16, 2021-- Fed gives strong vote of confidence in economic recovery
Powell pledges advance notice of any policy shift
The Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond--buying, and said the 15-month-old health emergency was no longer a core constraint on U.S. commerce.
Signaling that broad changes in policy may happen sooner than expected, U.S. central bank officials moved their first projected rate increases from 2024 into 2023, with 13 of 18 policymakers foreseeing a "liftoff" in borrowing costs that year and 11 seeing two quarter-percentage-point rate increases.
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Source: reuters.com
