Global ETF News Older than One Year
ETF SEcurities Investment Insights-3 Reasons Why Bitcoin Isn't Like Gold
January 10, 2018--Summary
Gold has a strong track-record as a store of value by preserving
spending power over long periods of time.
Gold investment is typically motivated to hedge risk while
return chasing is a large impetus for bitcoin buyers.
Gold is a physical asset with demand rooted in consumer and industrial applications beyond its role in the financial system.
Not a Proven Store of Value
Bitcoin and other cryptocurrencies' recent popularity has thrown them into the same classification with gold as a store of value. Bitcoin currently fails to meet the three major functions of money
(medium of exchange, unit of account, and store of value) that other reserve currencies such as the US Dollar, Euro, and Japanese Yen provide.
Source: etfsecurities.com
World Bank-Global Economy to Edge Up to 3.1 percent in 2018 but Future Potential Growth a Concern
January 9, 2018--Current Slack in Global Economy Expected to Fade
The World Bank forecasts global economic growth to edge up to 3.1 percent in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices.
However, this is largely seen as a short-term upswing. Over the longer term, slowing potential growth-a measure of how fast an economy can expand when labor and capital are fully employed-puts at risk gains in improving living standards and reducing poverty around the world, the World Bank warns in its January 2018 Global Economic Prospects.
Growth in advanced economies is expected to moderate slightly to 2.2 percent in 2018, as central banks gradually remove their post-crisis accommodation and as an upturn in investment levels off. Growth in emerging market and developing economies as a whole is projected to strengthen to 4.5 percent in 2018, as activity in commodity exporters continues to recover.
view the World Bank January 2018 Global Economic Prospects-Broad-Based Upturn, but for How Long?
Source: World Bank
WisdomTree-The truth about ETP liquidity
January 9, 2018--ETPs are growing in popularity, previously as a transparent and cost effective alternative to mutual funds. Because of their relatively recent adoption, misconceptions about ETPs are common and one is around an ETP's available liquidity.
Although the ability to trade ETPs intraday is well known, many institutional investors believe ETPs aren't tradeable in institutional size. The reality, however, couldn’t be further from this belief.
The misconception stems from investors who look at ETP trading volumes in the same way as they would a single stock, and inferring a tradable size from this metric.
Source: Jason Guthrie , WisdomTree
Game of Sefs: automation helps Tradeweb topple Bloomberg
January 8, 2018--Buy side's desire for lighter-touch trading of interest rate swaps propels Tradeweb to top spot by volume.
In 2014, when the use of swap execution facilities (Sefs) became mandatory, Bloomberg was the dominant dealer-to-client venue by volume.
However, Tradeweb took the crown in 2017, recording just over $1 trillion of volumes compared to Bloomberg's $800 billion.
Source: Risk.net
WGC-Gold-backed ETFs added 197.5t in 2017, growing assets by 8.4%
January 8, 2018--2017 themes
European funds captured 75% of global inflows in 2017, adding 148.6t of gold (US$5.8bn, 14% AUM) to their holdings
German-listed ETFs accounted for 35% of global net inflows in 2017
In the US, iShares Gold Trust and SPDR(R) Gold Shares collectively accumulated 62.6t or 28% of global net inflows
On a percentage basis, currency-hedged gold-backed ETFs had some of the strongest growth during 2017
Asian-listed funds accounted for 54% of global net outflows
2017 top 5 individual funds by US dollar flows
Xetra-Gold accumulated US$2.3bn
iShares Gold Trust added US$2bn
Source: World Gold Council (WGC)
ETF Securities Weekly Flows Analysis-2018 ETP flows pick up right where 2017 left off
January 8. 2018--Global equity ETPs garnered US$21.6mn buoyed by a synchronised global growth story.
Gold ETPs received inflows of US$19.2mn led by higher gold prices, having gained support from a weaker US dollar.
Outflows worth US$14.1mn from crude oil ETPs mark a continuation of last year's trend of outflows.
Gold ETPs received inflows of US$19.2mn, staging a strong start to the new year. Gold prices ended the week higher by 1% supported by a weak US dollar. While the rise in US payrolls missed estimates by a considerable margin of 42,000 workers in December, owing to a shortfall in the services sector, it is unlikely to be a significant shift in the overall trend. The US ADP employment data showed private employers added 250,000 jobs in December, marking the biggest monthly increase since March last year. The accomplishment of passing the US tax bill is also likely to benefit US corporate earnings.
Source: etfsecurities.com
BlackRock Global ETP Landscape Monthly Snapshot-December 2017
January 8, 2018--Global ETPs Set a New Flows Record in 2017, Posting Another Year of Double Digit Organic Growth
Summary:
Global ETPs Set a New Flows Record in 2017, Posting Another Year of
Double Digit Organic Growth
Global ETP flows of $633.0bn represented 18% organic growth-the fastest growth
since 2009-and exceeded last year's flow record of $378.4bn by 67%, fueled by
record flows across equity and fixed income categories
U.S. equities brought in a new annual record $196.1bn with tax reform prospects and economic growth driving flows to small-caps and a rotation into cyclical sectors
Broad developed markets equity funds saw record full-year flows of $116.2bn, including $54.5bn in EAFE products, spurred by favorable valuations and strong economic data
Broad emerging markets equities gathered $45.4bn in 2017, beating the previous record set in 2010 of $31.5bn, bolstered by stronger commodity prices and a weaker U.S. dollar
Fixed income flows grew to $156.2bn, a new record and an increase of more than a third versus last year and marking new highs for investment grade corporate bonds, emerging markets debt and U.S. Treasury funds
Source: BlackRock
Quant hedge funds set to surpass $1tn management mark
January 8, 2018--Growth propelled by interest in more systematic, computer-powered investment plans.
Source: FT.com
ETF Securities-Precious Metals Monitor--December 2017
January 5, 2018---Precious Metals Monitor--December 2017
Key Highlight
Gold: A Goldilocks Economy in 2018 May Benefit Gold
The global economy continues to chug along in a "just-right" goldilocks scenario with steadily rising inflation and synchronized growth among developed and emerging economies.
This backdrop has benefited equities over gold in 2017 while also resulting in stretched equity valuations and record low volatility. As the economy seems to be on cruise control, this complacency may see the probability of unforeseen risks disrupting the status quo increase. This may result in heightened demand for gold as a portfolio risk overlay in preparation for a correction or slowdown particularly while gold remains relatively cheap. Additionally, in an expanding global economy, consumer demand for jewelry and electronics may provide a floor for gold demand, while rising inflationary pressures may keep real interest rates low and tame as the US rate tightening cycle continues throughout 2018.
Source: etfsecurities.com
IMF Working paper-Optimism, Pessimism, and Short-Term Fluctuations
January 5, 2018--Summary:
Economic theory offers several explanations as to why shifting expectations about future economic activity affect current demand. Abstracting from whether changes in expectations originate from swings in beliefs or fundamentals, we test empirically whether more optimistic or pessimistic potential output forecasts trigger short-term fluctuations in private consumption and investment.
Relying on a dataset of actual data and forecasts for 89 countries over the 1990-2022 period, we find that private economic agents learn from different sources of in- formation about future potential output growth, and adjust their current demand accordingly over the two years following the shock in expectations. To provide a theoretical foundation to the empirical analysis, we also propose a simple Keynesian model that highlights the role of expectations about long-term output in determining short-term economic activity.
view the IMF Working paper-Optimism, Pessimism, and Short-Term Fluctuations
Source: IMF
