Global ETF News Older than One Year
FTSE Russell 2018 smart beta survey
January 22, 2018--The 2018 FTSE Russell advisor smart beta survey shows a bright future for smart beta among financial advisors in the US, UK and Canada, yet a long way to go toward broad-based knowledge and usage of smart beta strategies.
Notable findings:
A bright future
Outlook on future usage is strong in all three countries (more than half of financial advisors surveyed in the UK & Canada and 40% of those surveyed in the US expect to increase usage).
Show me don't tell me
Financial advisors in the US & Canada are looking for more information about smart beta before increasing their usage while UK advisors are skeptical as to the benefit. Notably, UK advisors express concern about smart beta strategy performance and short track records. In the US, 47% of advisors say they "don’t know enough about" smart beta strategies.
Source: FTSE Russell
The Current Economic Sweet Spot Is Not the "New Normal"
January 22, 2018--As the year 2018 begins, the world economy is gathering speed. The new World Economic Outlook Update revises our forecast for the world economy's growth in both 2018 and 2019 to 3.9 percent.
For both years, that is 0.2 percentage points higher than last October's forecast, and 0.2 percentage points higher than our current estimate of last year's global growth.
This is good news. But political leaders and policymakers must stay mindful that the present economic momentum reflects a confluence of factors that is unlikely to last for long. The global financial crisis may seem firmly behind us, but without prompt action to address structural growth impediments, enhance the inclusiveness of growth, and build policy buffers and resilience, the next downturn will come sooner and be harder to fight.
Source: IMF
DECPG Global Weekly
January 19, 2018--TAKING STOCK
U.S. consumer sentiment fell slightly in January; industrial production rose in December
Euro Area headline inflation edged down in December; trade surplus widened.
Japan's machinery orders accelerated in November
China's economic growth picked up in 2017
Nigeria's consumer price inflation decelerated in December
U.S. consumer sentiment fell slightly in January; industrial production rose in December. The preliminary reading for the index of U.S. consumer sentiment in January came in at 94.4, slightly below December's reading of 95.9. This decline reflected a less favorable assessment of current economic conditions by consumers than in December, while the future outlook assessment was broadly unchanged.
Source: World Bank
New research paper-When Size Doesn't Matter: Equal Weighting vs Market Cap Weighting
January 18, 2018--Solactive publishes new research paper on equally weighted versus market cap weighted index strategies
When Size Doesn't Matter: Equal Weighting vs Market Cap Weighting provides a detailed overview of the equal weighting method, comparing this to the more traditional market cap weighting scheme.
the former case, all securities are weighted equally, regardless of their market capitalization, whereas in the latter one, securities are weighted proportionally to their market capitalization.
The paper finds that equally weighted portfolios outperform market cap weighted ones over a period of evaluation running from 2000 to 2017 ,falling more during bear markets, but recovering faster after downturns.
view the Solactive When Size Doesn't Matter: Equal Weighting vs Market Cap Weightingwhite paper
Source: Solactive AG
DECPG Global Monthly-January 2018
January 18, 2018-- Monthly Highlights
In the January 2018 Global Economic Prospects, global growth is projected to edge up to 3.1 percent this year, amid firming investment, trade, and commodity prices.
Growth in advanced economies is forecast to remain strong in 2018, at 2.2 percent, but to gradually moderate as central banks remove post-crisis accommodation.
Growth in emerging market and developing economies (EMDEs) is expected to recover further in 2018, to 4.5 percent, as activity in commodity exporters accelerates and growth in commodity importers remains robust.
However, risks to the outlook remain tilted to the downside.
Source: World Bank
The World Federation of Exchanges publishes best practice guidelines for cyber security compliance
January 18, 2018--The World Federation of Exchanges ("The WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, has today published a set of best practice guidelines for market infrastructures designed to engender a staff culture of cyber security compliance.
The paper takes a behavioural approach to the issue, as evidence shows that moving away from classroom-based refresher sessions and thinking more creatively about how to get staff to consider cyber defences in everything they do is more effective in creating long-term cyber compliance. Applying behavioural insights and 'nudge theory'- brought to prominence by Nobel Economics laureate Dr Richard Thaler with Cass Sunstein*-can be useful to change staff security behaviour. Applying small 'nudges', or offering incentives regularly to staff, leads to greater discussion and awareness of cyber threats which may result in better cultural outcomes.
Source: WFE (The World Federation of Exchanges)
First Bridge 'ETF 20/20': ETF Global Snapshot-A Look Back at 2017
January 17, 2018--In our look back at 2017:
Global ETF assets grew by a very robust 36% in 2017 to $4.88T.
Within the smart beta category, momentum strategy ETFs grew by 100% to $11.5B. Multi-factor equity ETFs also had rapid growth, increasing by 51% to $80B.
ETFs providing exposure to Internet stocks, Chinese equities and Indian small caps were among the 20 best performing ETFs.
Within the smart beta category, momentum strategy ETFs grew by 100% to $11.5B. Multi-factor equity ETFs also had rapid growth, increasing by 51% to $80B.
Three big index providers-S&P Dow Jones (27%), MSCI (15%) and FTSE Russell (13%)-account for over 50% of global ETP assets.
1614 new ETFs were listed globally, including cross-listings & share class variants.
ETFs providing exposure to short term treasury bonds, Ex-US developed equity and US momentum stocks had the highest inflows relative to assets in 2017.
ETFs providing exposure to Internet stocks, Chinese equities and Indian small caps were among the 20 best performing ETFs.
Source: First Bridge Data
World Economic Forum-World Enters Critical Period of Intensified Risks in 2018
January 17, 2018--World Enters Critical Period of Intensified Risks in 2018
Structural and interconnected nature of risks in 2018 threaten the very system on which societies, economies and international relations are based, according to The Global Risks Report 2018.
The positive economic outlook gives leaders the opportunity to tackle systemic fragility affecting societies, economies, international relations and the environment, according to the report
Environmental risks dominate the Global Risk Perception Survey for the second year running; when we asked about risk trajectories in the coming year, 59% of answers pointed to increasing risks
This year's report covers more risks than ever, but focuses in particular on four key areas: environmental degradation, cybersecurity breaches, economic strains and geopolitical tensions. And in a new series called "Future Shocks" the report cautions against complacency and highlights the need to prepare for sudden and dramatic disruptions.
view the World Economic Forum-The Global Risks Report 2018
Source: WEF (World Economic Forum)
MSCI Clarifies the Treatment of Tobacco Companies as part of its Current MSCI ESG Indexes Consultation
January 17, 2018--MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, is currently conducting a consultation through the end of January 2018 on potential enhancements to the MSCI ESG Indexes.
Given the feedback that MSCI has received so far in relation to the treatment of tobacco companies in the MSCI ESG Indexes, MSCI would like to clarify the way in which the proposals, working together, would impact the treatment of tobacco:
1. Proposal in relation to worst offenders from all MSCI ESG Indexes
Over the past three years, we have observed consensus among international institutional investors on a minimum set of exclusions when considering ESG in their investment processes.
Source: MSCI
ETFGI reports assets invested in ETFs and ETPs listed globally increased by 36% during 2017 to reach a new high of $4.83 trillion
January 16, 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 globally increased by 36.3% during 2017 to reach a new high of US$4.835 Tn at the end of December. (All dollar values in USD unless otherwise noted.)
Assets invested in ETFs/ETPs listed globally increased by a record $1.287 trillion during the year, to reach a new high of $4.835 trillion.
According to ETFGI's December 2017 global ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in globally-listed ETFs and ETPs grew by $1.287 Tn YTD.
Year-to-date, through end of December 2017, ETFs and ETPs listed globally saw record net inflows of $653.97 Bn.
Source: ETFGI
