Americas ETP News
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Fidelity and Schwab fire latest salvos in brokerage fee war, doubling ETFs available for free trades
February 12, 2019--Major U.S. brokerages have been in the middle of a fee war as they chase investor dollars for popular products like exchange-traded funds.
As of the end of last year, ETFs had more than $3.3 trillion of assets, according to the Investment Company Institute.
Vanguard threw down the gauntlet last year when it opened free ETF trades to 1,800 funds, including those by rival managers.
The price war between major U.S. brokerages heated up Tuesday after Charles Schwab and Fidelity both announced they would expand commission-free trading to hundreds more exchange-traded funds.
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Source: CNBC.com
Do leveraged loans pose a threat to the US economy?
February 12, 2019--An economist and a credit investor argue for and against the increase in this type of corporate borrowing
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Source: FT.com
CFTC.gov Commitments of Traders Reports Update
February 12, 2019--The current reports for the week of February 12, 2018 are now available.
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Source: CFTC.gov
Assets replicating Scientific Beta's multi-factor indices reach USD 43bn
February 12, 2019--Scientific Beta sees its assets under replication grow by 72% in one year
Scientific Beta has announced that assets tracking its smart beta indices reached USD 43bn at December 31, 2018.
Compared to December 31, 2017, this amount of assets under replication represents an increase of USD 18bn, corresponding to one-year growth of 72%.
This growth comes from the success of Scientific Beta's multi-factor offerings. The Scientific Beta Multi-Beta Multi-Strategy Four-Factor EW indices, which were the first multi-factor indices to be offered by Scientific Beta, show an average live annualised outperformance across all Scientific Beta Developed regions of 1.49% over their five-year live track record and an improvement in Sharpe Ratio of 52.36% compared to their cap-weighted benchmark1.
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Source: Scientific Beta
Passive Funds Overtake Stock-Pickers in the U.S. Large-Cap Market
February 12, 2019--Index products are bigger in assets as of the fourth quarter
Morningstar tracks massive shift to cheaper investing approach
If stock-pickers are becoming an endangered species, this may be the latest sign.
Investors now have more money in large-cap equity funds tracking indexes than in actively run funds of the same type.
The lines crossed in the fourth quarter, according to data from Morningstar Inc. Passive mutual funds, exchange-traded funds and so-called smart beta funds in the sector held $2.93 trillion in assets as of Dec. 31, compared with $2.84 trillion on the active side.
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Source: Bloomberg
Schwab ETF OneSourceTM Doubles Lineup to 500+ Commission-Free ETFs
February 12, 2019-Pioneering program marks sixth anniversary by adding nearly 250 zero-commission ETFs, expanding coverage to 79 Morningstar categories
Schwab announced today that Schwab ETF OneSourceTM, one of the largest commission-free exchange-traded fund (ETF) programs in the industry1, will double its lineup and add iShares ETFs to its already robust menu
With these additions, Schwab clients will be able to buy and sell 503 ETFs covering 79 Morningstar Categories with $0 online commissions, no enrollment requirements and no early redemption fees or activity assessment fees-key differentiators for investors comparing Schwab ETF OneSource to other commission-free ETF offerings.
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Source: Schwab
Vident Financial's U.S. Diversified Real Estate ETF (PPTY) Reaches $100 Million Milestone
February 11, 2019--Fund Has Shown Strong Growth and Results since Launch in March 2018
PPTY is a Multi-Factor ETF Designed for Investors Who Understand the Importance of Location, Property Type, and Leverage Levels When Investing Real Estate.
Vident Financial, LLC today announced that the PPTY-U.S. Diversified Real Estate ETF (NYSE Arca: PPTY) has reached a significant milestone: $100 million in assets under management (AUM).
PPTY accomplished this impressive achievement in less than a year since its launch on March 27th, 2018, making it one of the most successful new ETFs to come to market.
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Source: Vident Financial
Alice's Adventures in Factorland: Three Blunders That Plague Factor Investing
February 11, 2018--Abstract
Factor investing has failed to live up to its many promises. Its success is compromised by three problems that are often underappreciated by investors. First, many investors develop exaggerated expectations about factor performance as a result of data mining, crowding, unrealistic trading cost expectations, and other concerns.
Second, for investors using naive risk management tools, factor returns can experience downside shocks far larger than would be expected. Finally, investors are often led to believe their factor portfolio is diversified. Diversification can vanish, however, in certain economic conditions, when factor returns become much more correlated. Factor investing is a powerful tool, but understanding the risks involved is essential before adopting this investment framework.
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Source: Research Affiliates, LLC
ETF disclosure should be standardized only after industry talks, State Street tells SEC
February 11, 2019--State Street Global Advisors, one of the three largest exchange-traded fund sponsors, asked the US Securities and Exchange Commission to launch an industry approach to consistent ETF disclosures rather than adopt a federal rule.
A rule has been called for by an SEC advisory panel seeking a uniform classification scheme that identifies risks among funds and offers more "truth in labeling" after billion-dollar losses during market gyrations last year.
State Street voiced concern that the panel's apparently simple scheme "does not fully disclose risk attributes" in a letter to the SEC.
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Source: https://mlexmarketinsight.com
New Proposed ETF Would Encompass Bitcoin Futures Alongside Sovereign Debt Instruments
February 11, 2019--Reality Shares ETF Trust — a unit of crypto-focused fintech firm Blockforce Capital-has filed a proposal for an exchange-traded-fund (ETF) that would invest in a portfolio which includes both sovereign debt instruments and Bitcoin (BTC) futures.
The was submitted to the United States Securities and Exchange Commission (SEC) Feb 11.
