Americas ETP News
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Fed warns high asset prices could make investors vulnerable
April 6, 2021--The Federal Reserve is warning that prices of stocks and other financial assets are rising to levels that could set investors up for big losses from sudden declines.
A Fed report released Thursday noted that stocks and other risky assets have risen in value since last November, in some cases to record highs, as the outlook for the post-pandemic U.S. economy has improved with increases in vaccinations and business re-openings.
"asset prices may be vulnerable to significant declines should risk appetite fall," the Fed report warned.
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Source: washingtonpost.com
BNY Mellon leads back-office race to secure US crypto ETF business
May 5, 2021--Regulators have not approved any bitcoin funds despite a growing list of proposals
Regulators are taking their time evaluating the growing number of bitcoin exchange traded fund proposals. But backers of such products are wasting no time to ensure they have the vendors in place to keep them humming if they are approved.
The early winner in the cryptocurrency ETF service provider contest is BNY Mellon. The New York-based bank has secured administration and/or transfer agency contracts with three of the eight bitcoin ETFs that have filed registration paperwork with the Securities and Exchange Commission, according to public announcements and regulatory disclosures.
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Source: FT.com
A reckoning for Spacs: will regulators deflate the boom?
May 4, 2021--The SEC is concerned about the market for 'blank-cheque' companies, including optimistic projections and celebrity endorsements.
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Source: FT.com
Alger Launches Second High Conviction, Focused Actively Managed Exchange Traded Fund
May 4, 2021--Alger announced the launch of Alger 35 ETF (ATFV), a high-conviction, actively managed exchange traded fund managed by Dan Chung, CEO and chief investment officer.
The ETF invests in 35 "best ideas" sourced from the firm's experienced analyst team.
Fred Alger Management, LLC ("Alger"), a leading growth equity investment manager, today announced the launch of Alger 35 ETF (ATFV), a high-conviction, actively managed exchange traded fund (ETF). It will invest in 35 "best ideas" sourced from the firm’s experienced analyst team.
Alger 35 ETF will be managed by Dan Chung, CEO and chief investment officer of Alger. Dan, who has 27 years of investment experience, is also a portfolio manager on several of Alger's long only and long/short growth equity strategies. The ETF will execute a strategy similar to the Alger 35 Fund, a five-star Morningstar rated fund, which launched in 2018.
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Source: prweb.com
Schwab Asset Management Launches Schwab International Dividend Equity ETF
April 29, 2021--Schwab Asset Management announced today that the Schwab International Dividend Equity ETF (SCHY) started trading on the NYSE Arca. With an operating expense ratio (OER) of 0.14%, the ETF is among the lowest cost ETFs providing exposure to international dividend equity securities.
"We are excited to bring our newest ETF to market for investors who are eager for additional choice in investment strategies that seek income," said David Botset, SVP of Product Strategy for Schwab Asset Management. "We are committed to providing investors with products that can help them build well-diversified portfolios at great value, and we’re pleased to expand our line-up with this new international dividend ETF."
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Source: Schwab Asset Management
Growth-value rotation to prompt major rebalancing of $15bn ETF
April 29, 2021--Top-10 holdings of iShares MSCI USA momentum fund thought to be at risk of exclusion include Amazon
Investors in a $15bn exchange traded fund are being warned to brace for a major rebalancing at the end of May that could see Amazon, currently one of the top 10 holdings, removed from the index altogether.
The cautionary advice on the iShares MSCI USA Momentum Factor ETF (MTUM) from CFRA, a research consultancy, might not come as a complete surprise to those who have been monitoring the market rotation away from growth to value companies, but the scale of the expected changes is a reminder that some ETFs can dramatically revamp their holdings.
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Source: FT.com
SEC extends decision on VanEck Bitcoin ETF proposal by another 45 days
April 29, 2021--The Securities & Exchange Commission has made a filing confirming that the decision on VanEck Bitcoin ETF will be delayed.
Currently, Grayscale Bitcoin Trust holds most of the shares in institutional investment in the cryptocurrency-related product.
Approval of the Bitcoin ETF would provide a more stable alternative to GBTC, providing a gateway for institutional money flow into the market.
The Securities & Exchange Commission (SEC) has decided to extend its decision on VanEck and the Chicago Board Options Exchange's (CBOE) application to list a Bitcoin exchange-traded fund (ETF). SEC to make a decision in June
VanEck filed the latest application for a Bitcoin ETF in December 2020. The SEC started the 45-day clock when CBOE filed to list the product.
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Source: fxstreet.com
CBO-Budgetary Effects of Climate Change and of Potential Legislative Responses to It
April 27, 2021--CBO outlines the main channels by which climate change and policies intended to mitigate or adapt to it affect the federal budget. Climate change increases budget deficits; investments in mitigation or adaptation could reduce those costs.
Summary
In this report, the Congressional Budget Office outlines the primary channels by which climate change and policies intended to mitigate or adapt to it affect the federal budget.
Climate change increases federal budget deficits, on net, by reducing revenues and increasing mandatory spending, both through its broad effects on the economy-which are negative, on average-and its specific effects on particular programs. Climate change may also increase the amount of discretionary funding provided by the Congress for certain activities and programs.
Investment by the government or others in various types of mitigation or adaptation efforts could reduce the costs of climate change. The benefits of successful investments would generally accrue gradually over many years and might be only partially reflected in future savings to the federal budget. The extent of future budgetary savings might sometimes be a small proportion of the up-front costs. Currently, CBO has no basis for estimating future savings, because many of the linkages between climate change and the federal budget require further assessment
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Source: CBO (Congressional Budget Office)
JPMorgan to Let Clients Invest in Bitcoin Fund for First Time: Sources
April 26, 2021--JPMorgan Chase is preparing to offer an actively managed bitcoin fund to certain clients, becoming the latest, largest and -if its CEO's well-documented distaste for bitcoin is any indication- unlikeliest U.S. mega-bank to embrace crypto as an asset class.
The JPMorgan bitcoin fund could roll out as soon as this summer, two sources familiar with the matter told CoinDesk. Institutional bitcoin shop NYDIG will serve as JPMorgan's custody provider, a third source said.
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Source: coindesk.com
Commodity Cycles, Inequality, and Poverty in Latin America
April 26, 2021--Summary:
Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world's highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century.
Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.
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Source: IMF
