Americas ETP News
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SEC questions Credit Suisse about volatility product: WSJ
February 13, 2018--Credit Suisse (CSGN.S) has been questioned by the U.S. markets watchdog about the volatility fund that the Swiss bank is terminating after its value plunged, the Wall Street Journal reported on Tuesday.
The U.S. Securities and Exchange Commission called Credit Suisse last Tuesday, the day after the market rout that prompted the bank to announce liquidation of its VelocityShares (XIV.P) product, the paper said
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Source: Reuters
Innovation Shares Announces Launch Of NextGen Vehicles & Technology ETF (EKAR)
February 13, 2018--EKAR is the first AI driven ETF to provide exposure to electric & self-driving vehicles; Follows January launch of KOIN, first AI powered blockchain-focused ETF
Innovation Shares LLC, a sponsor of unique thematic Exchange Traded Funds, is today announcing the launch of the Innovation Shares NextGen Vehicles & Technology ETF (NYSE Arca: EKAR), the first artificial intelligence (AI) driven ETF to provide investors with exposure to the universe of stocks involved in the growing categories of electric and self-driving/autonomous vehicles.
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Source: Innovation Shares LLC
Institutional Investors Spend More on Trading Technology, Less on Traders
February 13, 2018--Technology spending is crowding out trader pay on institutional trading desks. Overall, buy-side trading desk budgets are expected to hold relatively flat in 2018 at $17.3 billion industry-wide. However, a new report from Greenwich Associates shows that within those budgets, institutional investors are shifting their spending from trader pay to technology.
As recently as 2015, institutions were spending an average of almost 70% of overall trading desk budgets on trader compensation, with the remaining approximately 30% going to technology. In 2018, that allocation is expected to shift to just 60% compensation and 40% technology.
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Source: Greenwich Associates
ETFGI reports that assets invested in ETFs and ETPs listed in the US increased by 6.40% in January 2018 to reach a record high of US$3.642 trillion
February 13, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed in the US increased by $219 Bn or 6.40% in January 2018 to reach a record high of US$3.64 trillion, this represents the greatest monthly growth in assets since October 2015, when assets increased by $150 Bn. (All dollar values in USD unless otherwise noted.)
According to ETFGI's January 2018 US ETF and ETP industry insights report, an annual paid-for research subscription service, the US ETF industry had 2,157 ETFs and ETPs, assets of US$3.64 Tn, from 132 providers listed on 4 exchanges.
Highlights
Assets invested in ETFs/ETPs listed in the US increased by a record $219 billion during January to reach a new high of $3.64 trillion
In January 2018, ETFs and ETPs listed in the US gathered net inflows of $78.8 billion
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Source: ETGI
Merk Insight: This Time is Different. Really?!
February 13, 2018--"Don't panic, buy the dip, who cares?" or "These are rumblings of an earthquake, people will be hurt like in 1929"-which one is it? I would call it a wake-up call. Let me explain:
In recent years, markets had appeared eerily "safe". Central banks promised to do "whatever it takes", provided "forward guidance" to keep rates low, even printed money to buy government debt, calling it "quantitative easing."
Sure enough, volatility has been low, valuations have risen. Now, just as the fellow from the cartoon above, many might have thought something isn't quite right. As a result, many investors have been looking to buy some insurance, protection, just in case this goldilocks environment doesn't last forever. For those who have looked for ways to protect against a decline, they likely noticed that it had been rather expensive. Indeed, we had come to the conclusion some time ago that it may be more prudent for many investors to hold more cash rather than hold risk assets on the one hand, but then, say, buy put options in addition. However, cash in a 0% interest rate environment is not sexy (and holding cash a recipe for professional investors to lose client assets), causing many investors to have come up with ever more creative ways to "diversify."
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Source: Merk Investments
Vanguard Reinforces Commitment to Low-Cost Investing by Lowering Fee on Canadian Fixed Income ETF
ebruary 13, 2018--Management fee on Vanguard Canadian Aggregate Bond Index ETF (VAB) reduced from 0.12% to 0.08%
Vanguard Investments Canada Inc. announced today that it has lowered the management fee on one of its largest fixed income ETFs, by four basis points from 0.12% to 0.08%.
"Vanguard's mission is to give investors the best chance for investment success and part of that commitment is to lower the cost of investing for all Canadians," said Atul Tiwari, managing director for Vanguard Investments Canada Inc. "As we have recently seen, fixed income ETFs can play a key role as a stabilizing force in a portfolio, particularly during times of stock market volatility, and we are pleased investors will receive a fee reduction in one of our largest ETFs."
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Source: Vanguard
Trump Administration Proposes Fees for Futures Industry
February 13, 2018-The levies, which would be used to boost funding of CFTC, are opposed by industry, agency
The White House on Monday proposed levying fees on derivatives users to bolster the Commodity Futures Trading Commission's 2019 budget, an idea that may be dead on arrival because of industry opposition.
Moreover, leaders at the CFTC also are opposed to the funding idea.
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Source: Wall Street Journal
ETF News from The FORUM-Why Stocks Can Cope with Higher Rates Why Stocks Can Cope with Higher Rates
February 12, 2018--Stocks are down dramatically so far this month, and major index-tracking ETFs such as the S&P 500 SPDR (SPY) and SPDR Dow Jones Industrial Average (DIA) dipped into correction territory, traditionally defined as a decline of 10% or more from the recent highs. The culprit is the recent spike in interest rates.
Ten-year US Treasuries have risen to 2.85%, their highest point in four years (Figure 1), thanks primarily to the strong U.S. economy, where low unemployment and rising wages signal the possible return of inflation. Add to this news that the federal deficit is pushing towards $1 trillion for fiscal 2018, up from $666 in fiscal 2017, and it is no wonder that interest rates are up!
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Source: AltaVista Research
In 12b-1 Fee Crackdown, SEC Urges Advisors to Police Themselves
February 12, 2018--Advisors who self-report share class violations and repay investors, will not be hit with a financial penalty
The Securities and Exchange Commission said Monday that its enforcement division has launched an initiative designed to protect investment advisors from financial penalties if they self-report certain mutual fund share-class violations and return the money to harmed investors.<>view more
Source: thinkadvisor.com
AdvisorShares Weekly Market Review-Volatility Is Back in Town and It's Angry
February 12, 2018--Highlights of the Week Ending 2/9/2018
Macro
It's official, the equity market is in the middle of a panic. You can find a lot of pixels devoted to explaining why the market went down, or at least trying to explain what happened.
It could have been the unraveling of the short volatility trade, the Wall Street Journal blamed risk parity later in the week, rising rates are always relevant, perhaps increased deficits (soon to be 5% of GDP?) were to blame? Or maybe the market went down because it stopped going up, which is to say it might have been no reason at all that sent the market down.
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Source: AdvisorShares
